Business Overview
Eastern Silk Industries is in Textiles sector. It manufactures silk yarn, fabrics and made ups, home furnishings, fashion fabrics, double width fabric, scarves, laces, melts and embroidered fabrics.
It exports products to different countries in Europe, Middle East and US. The Corporate office of Company is situated in Kolkata. Products are categorized into three segments
- Home Furnishing
- Stock Service
- Fashion
It is also recognized as Golden Star export house by Government of India
Stock Performance
Above is long term price performance chart of the Stock. Investors have not made any money in this counter over the long term. Before year 2008 it gave excellent return to investors. From year 2002 to 2008 it gave 16 times return.
But after the global crisis it has not given any returns and have made new lows with time. The stock is trading below 1 INR over the years. It has not given any dividend as well
My Opinion
Eastern Silk Industries is in business of Textiles specially Silk. It has not performed for years. The Company is recognized Star exporter by Government of India but is unable to perform in recent years.
Textiles as a sector have struggled over the years. Only few companies have made money for investors from this sector. Though textile is evergreen sector just like food items. This will be in picture till people continue dressing themselves.
So you can have one company in your portfolio from this sector. But you should analyze different companies from the sector and then come up with your decision. Based on past returns and no growth over the years I would not recommend this Company.