Buy Indo Count Industries, target price Rs 164: Arihant Capital Markets

Arihant Capital Markets has buy call on Indo Count Industries with a target price of Rs 164. The current market price of Indo Count Industries is Rs 136.55 .

Indo Count Industries, incorporated in the year 1988, is a Small Cap company (having a market cap of Rs 2702.40 Crore) operating in Textiles sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 849.03 Crore, up 17.59 % from last quarter Total Income of Rs 722.02 Crore and up 10.70 % from last year same quarter Total Income of Rs 766.95 Crore. Company has reported net profit after tax of Rs 66.97 Crore in latest quarter.

The company’s top management includes Mr. Anil Kumar Jain, Mr. Siddharth Mehta, Dr. Sanjay Kumar Panda, Dr.(Mrs.) Vaijayanti Pandit, Mr. Sushil Kumar Jiwarajka, Mr. Prem Malik, Mr. Dilip J Thakkar, Mr. Kailash R Lalpuria, Mr. Mohit Anilkumar Jain, Mr. Kamal Mitra. Company has Suresh Kumar Mittal & Co. as its auditors.

Investment Rationale
The brokerage is of the view that on a full year basis, H2 will be similar to H1 in terms of margins though top line performance may pick up in Q4FY23- Q1FY24 owing to holiday demand. Despite the shrinking wallets, high inflation, rising interest rates, high (but less volatile) cotton prices, and dampening consumer demand, the brokerage recommend that investors Buy the stock because the benefits of llow cost cotton inventories will reflect on margins in the next year.

Promoter/FII Holdings
Promoters held 58.94 per cent stake in the company as of 30-Jun-2022, while FIIs owned 9.28 per cent, DIIs 0.09 per cent.