• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

In advanced stage of raising a term loan of Rs 74 cr

Kolkata , Sept. 18

Suryalata Spinning Mills is seeing increase in valuation on steady accumulation as it nears completion of its expansion project. The stock gained over five per cent on Monday to close at Rs 71.55, which marked an improvement of 19 per cent in the last one week. The BSE-listed stock recorded a traded quantity of 32,322 shares.

The company is in the advanced stage of raising a term loan of Rs 74 crore to part-finance its spindle capacity expansion and setting up of weaving and processing units, according to sources.

Recently it obtained shareholders' nod for increasing borrowing powers.

An equity issue to mop up around Rs 29 crore is scheduled next for the Rs 126-crore expansion plan. Currently, the company's equity base is Rs 5.45 crore and had reserves - as on March 31, 2006 - of about Rs 24 crore.

The Hyderabad-based company's new project to add 20,000 spindles at Urkondapet in Andhra Pradesh is in progress and would be commissioned by the end of the third quarter.

It is part of the total 45,000 spindles addition programme undertaken by the company.

The expansion of spinning capacity from the current 64,368 units to 1.09 lakh, according to the management, is projected to lift the company's turnover by around Rs 160 crore.

The new weaving and processing capacity of 50,000 m a day is to ramp up sales by another Rs 140 crore in 2009-10.

According to analysts, the company's turnover could touch Rs 500 crore in the next three years from the 2005-06 level of Rs 170 crore.

The company has also planned to take up a 10,000-piece per day trouser manufacturing facility in the next fiscal.

"The operating margins are likely to improve because of its integrated production at all points of the value chain and cost savings within next few years," said an investment strategist.

In 2005-06, the company's EPS moved up to Rs 10.51 from Rs 7.05. For the quarter ended June, it reported EPS of Rs 3.07 compared to negative earning of Rs 4.62 in the quarter ended March 31, 2006.

More Stories on : Stocks | Textiles | New Projects

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
2,200 DSE listed cos may get BSE, NSE trading chance

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line