Garden Silk Mills Ltd Stock Research

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Garden Silk Mills Ltd Detail

Garden Silk Mills Ltd is in portfolio of Ricky Kirpalani and Haresh Keswani . He is one of the top investors in India. The company belongs to Textiles sector.

As per the Company website it is an Indian fabric engineer & manufacturer of polyester yarn. It has plant near Surat which is considered as major Textile hub in the Country. The product range of the Company includes

  • Polyester Chips
  • Polyester Yarn
  • Nylon Yarn
  • Woven and Printed Fabric

The Company is also planning to manufacture below product lines in future

  • Nylon POY
  • Nylon DTY
  • PSF
  • Polyester Films
  • PET (Bottle Grade)

I was impressed with Company website. It had online stone showcasing products. It does have retail presence in most states of India.The offline and online presence is good. Company provides good details about Depots and retailers on the site itself. The products on website available for online sales are

  • Sarees
  • Salwar Kameez
  • Ready Made Garments like Western dresses, Kurtis, Tunics, Jeggings and Shirts
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Garden Silk Mills Ltd Stock Performance

The stock performance can be divided into two parts from year 2002 to 2011 and 2011 to till date. The first phase was good despite the global crisis of 2008. Company gave positive returns in that time frame.

The worst time started from that time onward. From heights of 150 odd price level Company continued under performance almost every year and is now trading at 20 odd levels. So as of now Company is on decline and you should not catch a falling knife. It is better to wait and let it consolidate before diving into it.

Garden Silk Mills Ltd My Opinion

Garden Silk Mills Ltd is a Textiles Company.I am not really fond of Textiles Company. I prefer textile machinery or other sectors which cater or services textile industry. Most textile companies have given negative returns to investors over the period of time.

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I had good impression about Company from website design and pan India presence. But it has not performed well incrementally. It seems the Company is saturated and is finding it difficult to get next growth catalyst. The future product pipeline may help in this regard.

But you should observe and see how future plans of Company goes before making a decision. Personally I have not invested in this sector and am not convinced to invest in it so far.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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