PBM Polytex Ltd. Stock Research

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PBM Polytex Ltd. Detail

PBM Polytex Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Textiles sector .

As per the Company website it has two plants. Below are details for both the plants

  • PBM Polytex – Located in Petlad Gujarat.Annual production capacity of 6,000 tons
  • BLP Spinners – Located in Boregaon Maharastra. Annual production capacity of 3,000 tons.

It produces high quality grey 100% combed cotton yarn. The spinning system are Ring Spun, Compact Spinning and Open End. The corporate office of Company is situated in Baroda Gujarat and Registered Office is situated in Anand Gujarat.

Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

PBM Polytex Ltd. Stock Performance

PBM Polytex stock performance
PBM Polytex stock performance

The stock has been steady performer over the years. There were two sharp bumps in year 2008 (Global crisis) and year 2011. Apart from those bumps it has shown steady growth in prices.

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Over the years it has given close to 7 times return. If you see the 52 week high and 52 week low are not too far apart. It shows the steadiness of the stock. the dividend yield is more than 4% at current market price.

So at 2002 price point investors get 28% return. The consistent dividend giving company which is steady and gives good return is always preferred by the Company.

PBM Polytex Ltd. My Opinion

PBM Polytex Limited is in Textiles sector. As mentioned above it deals with Cotton yarn. Textiles is huge sector with lots of small to big players listed in it.

Subramanian P has many Textiles company in his portfolio. I personally do not like the Sector. Most of the Companies are single factory based. Any problem in the factory (Labor issue or Fire break or any other calamity) will have drastic impact on Stock prices.

Textiles is an evergreen sector and is one of the largest employer of Human resources in India. Despite that not many companies have given good returns in past. Some have given decent returns and in some investors have lost their money.

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I am more interested in Textile Machinery Companies as they will supply Machinery to textile Companies. There are handful of Companies listed in this space. I do track one Textile Machinery company.In case you are interested in Textiles sector 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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