Cotton Yarn Company Bags Order Worth Around Rs 13 Crore for 450 MT of Cotton Yarn
The company has a market cap of Rs 742 crore and the stock gave multibagger returns of 120 per cent from its 52-week low of Rs 209 per share.
A B Cotspin India Ltd (NSE: ABCOTS), a prominent textile manufacturer boasting over 25 years of industry experience, has announced a significant accomplishment by securing an order valued at approximately Rs 13 crore for 450 metric tons of cotton yarn. This substantial order underscores the company's strong market presence as a reliable provider of premium cotton yarn, knitted fabrics, and environmentally conscious products. This achievement not only highlights AB Cotspin's capabilities but also aligns with the positive trajectory of India's cotton yarn industry.
The Indian cotton yarn sector is anticipated to experience a revenue growth of 7 to 9 per cent this fiscal year, a notable increase from the previous year's 2 to 4 per cent growth. This improvement, as per Crisil Ratings, will primarily be fuelled by a resurgence in export demand coupled with consistent domestic consumption. Volume growth will be the main catalyst, supported by a marginal rise in yarn prices. Furthermore, operating margins, which saw recovery last year, are projected to improve by an additional 50 to 100 basis points this fiscal year, benefiting from stable cotton yarn price spreads and enhanced cotton availability facilitated by procurement through the Cotton Corporation of India (CCI).
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Incorporated in 1997, A B Cotspin India Ltd is a diversified manufacturing company primarily engaged in cotton ginning, manufacturing, and trading of both combed and carded cotton yarn and fabrics, supplying mainly to textile industries in Punjab and Haryana. Additionally, the company is involved in the extraction of oil and the production of cakes from cotton seeds, a by-product of its ginning process. Their yarn manufacturing encompasses various types, including 100 per cent cotton yarn of counts 20-30s, double yarn of counts 20-30s and slub yarn, while their knitted fabric production includes combed, carded and slub varieties, with in-house yarn requirements being met internally. The company’s product profile extends beyond cotton to include mustard-based products like seed cake and oil, as well as specialised yarns such as BCI yarns and other items like oil gads and cloth.
The company has a market cap of Rs 742 crore and the stock gave multibagger returns of 120 per cent from its 52-week low of Rs 209 per share.
Disclaimer: The article is for informational purposes only and not investment advice.