Fundamental Analysis

INDO COUNT INDUSTRIES LTD. 

Ticker : 521016
BUY : Rs 127.60
Target : Rs 141

Indo Count Industries Ltd is engaged in textile manufacturing. The company offers products under multiple categories, including bed sheets, fashion bedding, utility bedding, and institutional bedding. On a consolidated quarterly front, the net sales fell by 34.6 per cent in Q1FY21 to Rs 331.75 crore from Rs 507.28 crore in Q1FY20. The company reported an operating profit of Rs 38.87 crore in Q1FY21, down by 45.54 per cent from Rs 71.37 crore reported in Q1FY20. Similarly, the net profit decreased by 48.95 per cent from Rs 34.67 crore gained in Q1FY20 to Rs 17.70 crore gained in Q1FY21. The company has a robust capital structure but the last quarter’s performance was affected due to COVID-19. In the last month, CARE Ratings has reaffirmed Indo Count Industries' long and short-term bank facilities. The demand in the home textile market is expected to rise in the coming future. Hence, we recommend a BUY.