Business Details
Suncity Synthetics limited is in business of manufacturing of Polyester stable fibers and Nylon stable fibers. These products are used in Hosiery items and carpet industry.
The Company has also ventured into manufacturing of Nylon/ Polyester twisted and barided ropes. It has manufacturing base located in Jodhpur in Rajasthan and Surat in Gujarat.
It is also manufacturing Nylon granules. The products from Company are listed below
- Polyester stable fibers
- Nylon fibers
- Nylon construction fibers
- Reprocessed Nylon chips
- Polyamide6 flock tow fiber
- Nylon/ Polyester braided ropes
- Nylon/ Polyester twisted ropes
Stock Performance
Above is long term price performance chart of the Company. If you see above chart then Company has not given any returns to long term investors. In fact long term investors have lost money in the counter.
It seems to be cyclic stock which has range bound movement between 4 INR on lower side and 13 to 14 INR on the higher side. It keeps trading in this range for more than one decade. It does not give any dividend yield to investors as well.
My Opinion
Suncity Synthetics limited is small company which creates products used in Hosiery and Carpet industries. These are evergreen industries specially hosiery as demand of products created will be present.
So end products from Company are used in evergreen industries which are a big plus point for it. However it is competitive sector and there are many companies present which creates Polyester and Nylon fibers. This is also commodity business which does not have any pricing power.
Due to competition, absence of any MOAT and presence of bigger players in the space I would not suggest to invest in the Company. There are better players present in the space which can be considered if one is interested in the segment.