Sarup Industries Ltd Detail
Sarup Industries 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 engaged in the business of leather, tanneries and developing the new products with wide range of uppers, soles, tanneries and complete shoes.
It has stores in Jalandhar and Chandigarh. It has office in Jalandhar city. So the Company is local player in state of Punjab and Haryana. It claims to have presence in North Indian part but I doubt that it covers all of North India.
Recently Company has implemented shopping mall project. This signifies that it is trying to diversify the business operations as well.
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.
Sarup Industries Ltd Stock Performance
The stock was trading at 17 INR mark in year 2002. From that point onward it did have more or less flat structure. In next 12 years period it only touched 50 mark for brief period of time. The performance of Company did not made impact on stock price.
The recent bull run did zoomed the price past 100 mark but prices cooled off as well trading close to 50 mark as well.The Company does pay good dividend yield. At current market price it is more than 2%. But price appreciation was not that good so dividend yield does not look attractive.
Sarup Industries Ltd My Opinion
Sarup Industries Ltd is in Leather sector. It is geographically focused Company mainly operating in North India state of Punjab and Haryana. Both the stores are present in big cities like Jalandhar and Chandigarh. Note Chandigarh is the capital city.
The products created by this Company are Shoes and Slippers both for men and women. This space is crowed and dominated by big players like Bata, Shree Leathers and foreign players as well. New players are also joining market leveraging benefit of Online market place to drive sales.
Frankly the foreign players dominate the premier segment of Shoe and Slippers area.The local players like Bata and all are dominate players in mid range segment and have pan India presence. I am not invested into Leather space. Note Shoe and other similar products as a segment is ever green as demand for products will be present always.
The only challenge is emergence of Mesh and other similar synthetic based Shoes and other items. This may lessen the leather usage in these industries. Due to these reasons only Leather based product Companies will find it difficult to scale. Companies with diversified product range and able to use new technology will flourish.
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.