Indo Count Industries Ltd., incorporated in the year 1988, is a Small Cap company (having a market cap of Rs 3431.79 Crore) operating in Textiles sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 704.75 Crore, down -11.04 % from last quarter Total Income of Rs 792.25 Crore and up 65.84 % from last year same quarter Total Income of Rs 424.97 Crore. Company reported net profit after tax of Rs 57.76 Crore in latest quarter.
Investment Rationale
Driven by improved utilisation rates (85%+) and controlled working capital cycle days (~32% of sales), the brokerage expects the company to generate healthy free cash flow worth ~Rs 450 crore in FY22-23E (post capex worth Rs 250 crore during the same period). Asset light nature of the business (2.5x asset turn) and strong EBITDA margins (~15-16%) would translate into RoCE of 22% in FY23E. Currently, net D/E ratio is comfortably placed at 0.2x. The brokerage expects the company to be net debt free by FY23E. It likes Indo Count as a structural long term story to play the home textile export space
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
