Super Tannery Ltd Stock Research

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Super Tannery Ltd Detail

Super Tannery Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Leather sector.

As per the Company website it is the world’s leading Buffalo leather tannery and specializes in the manufacture of high quality leather for Automotive & Furniture Upholstery, Safety & Lifestyle Footwear, Bags, Belts, Sporting Goods and Equestrian equipment.

The company has expanded and diversified into the manufacturing of Safety & Lifestyle Footwear, Bags and Belts, and produces high quality products for leading brands of the world. It is one of the oldest tannery in North India. It exports the product to 40 countries around the World.

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.

Super Tannery Ltd Stock Performance

The stock has given 5 times return in past 16 years. It is still trading at below 3 mark. In the entire journey of last 16 years the stock has not traded in double digit. It has not touched 10 INR mark so far.

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It has steady rise over the years and majority of the time traded between 1 and 2 mark (from year 2005 to 2014). It is only after 2014 that it has traded above 2 INR mark for considerable amount of time. So 2 can be taken as good support now. Any price below 2 makes it attractive.

Super Tannery Ltd My Opinion

Super Tannery Ltd is a Leather company. It is oldest player in North India and is slowly venturing into creating life style products of its own. So far it mostly supplies to national and international players.

Like other Leather Company this stock has its own merit and demerit. You need to weigh in these merits and demerits before making any decision about them. The merits are that Leather products like Belts, Shoes and other life style items will remain in use and market will continue to have demand. It will be increasing with time and there will not be any slow down in future.

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The demerit is that Companies are nowadays using Synthetic products to create life style items which once was created using Leather. This is in a way replacing leather with other items. Though it will be tough to replace it completely. There will be constant demand of it as well.

It is interesting Company due to nature of product and business model. It will be interesting to compare it with other companies in this niche. Note it can be viewed as Company producing raw material for Life style product companies.As of now I am not invested in this sector and planning not to invest in it further.

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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