Indo Count Industries: Stitching Together a Sustainable Future◉ Abstract
Indo Count Industries Ltd., a leading Indian home textile manufacturer, has reported significant growth, with FY24 revenue reaching ₹3,557 crore, an 18% increase year-over-year. Despite supply chain challenges and a decline in sales volume, the company remains optimistic about future growth, driven by strong demand and strategic initiatives. The company’s focus on sustainability and strategic acquisitions has further strengthened its position.
Currently trading at a P/E ratio of 20.3, below the industry average, Indo Count appears fairly valued. Increasing institutional interest indicates growing confidence in the company’s long-term potential. As Indo Count continues to prioritize operational efficiency and market expansion, its future growth prospects remain promising.
Read full analysis here.........
◉ Introduction
The US bed and bath linen market is projected to experience significant growth in the coming years. As of 2024, the market size is estimated at approximately $10.73 billion, with expectations to reach $13.14 billion by 2029, reflecting a compound annual growth rate (CAGR) of 4.14% during this period.
This growth is driven by several factors, including:
1.Increased Homeownership: Rising homeownership rates are boosting demand for essential bed and bath linens like sheets and towels.
2.Consumer Spending: Higher disposable incomes are leading to increased spending on home furnishings, including premium and luxury linen products.
3.Sustainability Trends: There is a growing consumer preference for eco-friendly and sustainable products, influencing purchasing decisions in the bed and bath linen segment.
The market is characterized by a low concentration of major players, indicating a competitive landscape with numerous brands catering to various consumer preferences.
◉ Major Players in the Industry
Several key players dominate the US bed and bath linen market:
1.Indo Count Industries Ltd.: As the largest manufacturer of home textile bed linens globally, Indo Count is a significant player in the US market, known for its extensive product range and commitment to sustainability.
2.Brooklinen: This brand offers modern and luxurious bedding products, appealing to consumers seeking comfort and style.
3.Peacock Alley: Known for its premium quality and craftsmanship, Peacock Alley focuses on high-end bed and bath linens.
4.Crane & Canopy: This company provides stylish yet affordable options for a wide range of consumers.
5.Tempur Sealy International, Inc.: A leading player in the bedding industry, known for its innovative mattress solutions that complement bed linen offerings.
6.American Textile Company: Offers a variety of bedding products with a focus on quality and comfort.
Today, we'll take an in-depth look at Indo count Industries, a prominent player in the US bed linen manufacturing sector, exploring its market positioning and competitive dynamics.
This detailed report undertakes a thorough evaluation of ICIL's technical capabilities and core business fundamentals.
◉ Company Overview
Indo Count Industries Limited NSE:ICIL , established in 1988, is a leading Indian home textile manufacturer. The company offers a diverse range of products, including bed sheets, fashion bedding, utility bedding, and institutional bedding. With showrooms in the UK and US, Indo Count sells its products under 17 distinct brands through multi-brand outlets, large format stores, and e-commerce platforms. Headquartered in Mumbai, India, the company exports its products globally.
◉ Market Capitalization - ₹ 6,288 Cr.
◉ Revenue Breakup (Location Wise)
➖ With a staggering 97.5% of its revenue generated from the US and UK markets, Indo Count Industries Limited has established itself as a prominent global player in the home textile industry.
➖ The remaining 2.5% of its revenue comes from domestic Indian sales.
◉ Challenges and Headwinds:
➖ Sales volume and revenue decline YoY due to supply chain issues, leading to higher inventory.
➖ Anticipated clearance of 2.5 million meters of deferred shipments in upcoming quarters.
➖ Revised EBITDA margin guidance: 15-16% due to upfront HR and brand promotion costs
◉ Margin Guidance and Future Outlook:
➖ Despite near-term challenges, Indo Count Industries Limited's management remains upbeat, fueled by a strong demand outlook and solid market positioning.
➖ Strategic investments in branded segments are expected to yield returns within the next four years, driving improved margin guidance.
➖ To further propel growth, the company is focused on enhancing operational efficiencies and scaling up operations in high-potential segments.
◉ CAPEX
➖ Indo Count Industries Limited has revised its FY25 capital expenditure (CAPEX) upwards to ₹413 crores, a significant increase from the initial estimate of ₹165 crores, driven by strategic acquisitions and investments.
◉ Strategic Acquisitions
➖ Recent acquisitions of Fluvitex Inc. and Modern Home Textiles, enhancing U.S. manufacturing footprint.
➖ Acquisitions strengthen presence in critical U.S. regions, expanding customer base without overlapping existing clientele.
◉ Technical Aspects
➖ Over a prolonged consolidation phase, the stock price developed a Cup & Handle pattern.
➖ Following a breakout, the stock surged sharply, hitting an all-time high near the 448 level.
➖ Nevertheless, it faced significant resistance and retraced to the previously established breakout level.
➖ Currently, the price is at a crucial point that could act as an important support zone.
➖ There is strong anticipation that the stock may rebound from this level and begin to rise again.
◉ Relative Strength
The chart reveals that Indo Count Industries Limited (ICIL) has lagged behind the Nifty Small Cap Index over the past year, generating a 12.7% return compared to the index's impressive 26.3%.
◉ Revenue & Profit Analysis
● Yearly
➖ Indo Count Industries Limited reported strong growth in Fiscal Year 2024, with revenue reaching ₹3,557 crore, an 18% increase from ₹3,012 crore in FY23.
➖ EBITDA surged to ₹562 crore, up from ₹455 crore, while the EBITDA margin improved to 16% from 15%.
● Quarterly
➖ In the quarter ending September, the company's revenue rose to ₹1,036 crore, a 10% increase from ₹941 crore in the previous quarter, slightly higher than ₹1,009 crore in the same quarter last year.
➖ EBITDA for the quarter increased to ₹157 crore, up from ₹145 crore in the previous quarter.
➖ However, diluted EPS (LTM) declined to ₹15.62 in September from ₹17.27 in June 2024.
◉ Valuation
● P/E Ratio
➖ The company's present price-to-earnings (PE) ratio stands at 20.3, lower than its 1-year median PE of 21.4.
➖ When we look at the industry average PE of 26, it indicates that the stock might be considered somewhat undervalued at this time.
● P/B Ratio
➖ ICIL's P/B ratio of 2.86 indicates considerable overvaluation compared to the industry average of 1.46.
● PEG Ratio
➖ A PEG ratio of 0.49 suggests that the stock is undervalued relative to its expected earnings growth.
● Intrinsic Value
➖ Indo Count Industries is currently trading at ₹307, which is nearly 1.1 times its intrinsic value of ₹279, indicating that the stock is fairly valued at this moment.
◉ Cash Flow Analysis
➖ The operating cash flow for Indo Count Industries Limited experienced a notable decline from ₹755 crore in FY23 to ₹146 crore in FY24. This decrease can be attributed to the strategic allocation of capital towards acquiring prominent brands, such as Wamsutta, as part of the company's expansion and growth initiatives.
◉ Debt Analysis
➖ ICIL's debt of ₹1,461 crore and debt-to-equity ratio of 0.66 indicate robust financial health. Furthermore, its impressive interest coverage ratio of 5.74 suggests the company is well-positioned to manage its debt obligations, ensuring greater financial flexibility and stability.
◉ Top Shareholders
➖ The promoters have maintained their 58.74% stake for the last two years.
➖ Foreign Institutional Investors (FIIs) have maintained their stakes since June, now holding 10.69%.
➖ Domestic Institutional Investors (DIIs) have continuously increasing their stakes from June 2023 and now holding 3.67%, significantly up from 2.16% from the June quarter.
➖ At the same time, retail investors have been consistently selling their shares over the past few quarters.
**Additionally, Mukul Mahabir Agarwal , a veteran investor, places a strategic bet on Indo Count Industries Limited, acquiring 1.17% of the company's shares, a move poised to reap rewards.
◉ Mutual Fund Exposure
➖ Indo Count Industries Limited witnessed increased institutional interest in October 2024, with thirteen funds holding 70 lakh shares, representing a 9.3% rise from September's 64.1 lakh.
◉ Conclusion
Based on our analysis of key technical and financial metrics, Indo Count Industries Limited's strategic focus on diversification, acquisitions, and premium products positions the company for sustained growth and long-term value creation.
We anticipate that this positive trajectory will be reflected in its stock price performance.
Indianstockmarket
BAYER CROPSCIENCE - Potential 40% upmove Mid Term IdeaThe stock is in strong uptrend.
Moving out of a 4 year old consolidation zone.
Coming out of a 5 week old
consolidation, Daily VCP Breakout.
Ready for Swing Targets
15% 8215, then 9579 - Short To MId Term Targets 3-6 months.
SL 5% 6576 Daily closing Basis.
NIFTY50 || RSI positive divergence As mention in my previous idea, the recent rally was indeed a 'Dead Cat Bounce' as NIFTY50 has experienced another significant drop. However, examining the charts above reveals positive RSI divergence in both the 2-hour timeframe (TF) and the daily timeframe (DTF), with NIFTY reversing from a marked support zone.
For the next bull run to be confirmed, NIFTY should hold above today’s low and meet the following two criteria:
1. The index begins trading above the 20 EMA band.
2. The RSI surpasses the 70 mark.
This setup could indicate a more sustainable upward trend if both conditions are fulfilled.
Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Trading involves significant risk, and it’s essential to perform your own research or consult a financial advisor before making any investment decisions.
Essential principles for traders:
1. Be Disciplined, Avoid FOMO: Maintain a disciplined approach to avoid impulsive decisions based on the "fear of missing out" (FOMO), which can lead to risky trades.
2. Risk and Reward Management: Always assess potential rewards relative to risks before entering a trade. Proper risk management ensures long-term success by limiting losses on any single trade.
3. Follow Stop Losses: Calculate and set a stop loss for every trade to protect against significant losses. Make it a habit to adhere to it without exception, even if the market seems to be in your favor.
4. Journal Your Trades: Maintain a trading journal to track decisions, wins, and losses. Analyzing past trades can help improve future strategies and identify patterns in behavior or biases.
5. Master One Strategy Before Expanding: It’s beneficial to focus on mastering a single trading strategy before exploring others. Once consistent, you can broaden your approach to diversify risk and opportunities.
6. Control Emotions: Emotions, especially greed and fear, can cloud judgment. Cultivating a mindset that balances confidence and caution is key to maintaining objectivity.
APOLLOHOSPITAL 240 MINS TIME FRAME - MY VIEW ONLYThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Please keep your comments useful & respectful.
Keep it simple, keep it Unique.
Thanks for your support
Tradelikemee Academy
Saanjayy KG
GBPUSD: Updated Chart, Price is Approaching Buying Zone! FX:GBPUSD
As we previously stated in our chart that we expect price to drop nearby to our entry zone however, price continued to rise and then started dropping please be minded that there Amy be early price mitigation due to this vary reason. In our opinion stick with the plan and do not take any early entry as there may be trap before the actual trade begins. good luck.
NIFTY Buy opportunity on solid cyclical patterns.We last looked into the Nifty 50 Index (NIFTY) on September 05 (see chart below), when we got an excellent buy on the 1D MA50 (blue trend-line) that quickly hit our 25700 Target:
As you can see, our trading approach was based on the recurring technical patterns (Megaphones) since July 2023. Even though the current wide price action doesn't fit the former Megaphone patters, we can still call for a bottom soon as, not only is the price approaching the 1D MA200 (orange trend-line), but also the 1D RSI is almost on the same oversold (below 30.00) level as 1 year ago (October 26 2023)!
In fact the pattern of September - October 2023 looks very similar to Sep - Oct 2024. The risk of buying here is low while the reward is high, making for a very appealing R/R ratio. As a result, we turn long again, targeting 27400 (+15.67% rise as the previous bullish break-out legs).
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💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
WAAREE Short Trade Targets in Play, Massive Drop to 1571!WAAREE (15m time frame), Short Trade
Entry: ₹1,763.00
Current Price: ₹1,571.00
All Targets Done!
Key Levels:
Entry: ₹1,763.00 – After confirming a strong bearish signal, short entry was executed.
Stop-Loss (SL): ₹1,767.60 – Placed above key resistance to protect against potential reversals.
Take Profit 1 (TP1): ₹1,757.30 – First target triggered, confirming downward movement.
Take Profit 2 (TP2): ₹1,748.10 – Critical support level broken.
Take Profit 3 (TP3): ₹1,738.90 – More aggressive downside level confirmed
Take Profit 4 (TP4): ₹1,733.25 – Final target hit for deep correction in this trend.
Trend Analysis:
WAAREE’s price continues to plunge after a decisive break below multiple support levels, confirming strong selling pressure. With the current price at ₹1,571, this trade has captured a significant move, with further downside potential still in play.
Jio Financial Services (JFS): Navigating Key Levels with PositivJio Financial Services (JFS): Navigating Key Levels with Positive Momentum
NSE:JIOFIN (JFS) is currently at a critical juncture, testing key support and resistance zones amidst positive market sentiment.
Resistance Zones: 346 / 356 – The stock may face selling pressure near these resistance levels, but a breakout could signal renewed bullish momentum, especially considering the favorable news surrounding the company.
Support Zones: 335 / 316 – These levels are crucial for short-term support. If breached, it could lead to downside pressure, but strong buying interest at these levels may act as a cushion, preventing further decline.
Positive News Catalyst:
JFS recently received SEBI's in-principle approval to establish a mutual fund business in collaboration with BlackRock. This strategic 50:50 joint venture, dubbed Jio BlackRock, combines BlackRock's global expertise in investment and risk management with JFS’s strong local presence and digital infrastructure. This marks a significant re-entry for BlackRock into the Indian market, positioning JFS for expanded offerings in the investment space.
With this venture, JFS is poised to bring innovative financial products to the Indian market, which could attract investor interest and drive future growth. Positive sentiment from this news may create bullish momentum, and a break above the 356 resistance level could trigger further upside.
Key Takeaway: The stock is likely to be influenced by both technical and fundamental factors in the near term. Traders should watch for price action near the 346 and 356 levels for potential breakouts, while monitoring support at 335 and 316 for signs of strength.
Disclaimer: I am not a SEBI-registered Research Analyst. This analysis is for educational purposes only. Please conduct your own research or consult a financial advisor before making any trading decisions.
SHIVAMAUTOHi guys, In this chart i Found a Demand Zone in SHIVAMAUTO CHART for LONG entry,
Observed these Levels based on price action and Demand & Supply.
*Don't Take any trades based on this Picture.
... because this chart is for educational purpose only not for Buy or Sell Recommendation..
Thank you
Nifty Shortterm ViewNifty Shortterm View on Daily TF
Looks like Trendline testing is pending on Downside
and if we invert the chart structure , then also i feel taking risk on downside is having better R:R
Even if market breaks Present ATH, this Trendlines are still valid as long as they didnt get validated.
$NSE:TATAELXSI Learnings - Time correction/opportunity costNSE:TATAELXSI
🔰Analyzing Tata Elxsi: A Case of Valuation & Earnings Stability ⤵️
🔰 PE Ratio Halved: From 100 to 50
✅ The PE ratio dropped from around 100 to 50, signaling a shift in market sentiment or correction from an overvalued state.
🔰 Timewise Correction, Not a Price Drop
✅ The stock has gone through a timewise correction with sideways movement instead of a steep decline.
↳ This often indicates consolidation after a significant rally.
🔰 Earnings Stability
✅ Despite the PE decline, EPS (Earnings Per Share) remains stable or slightly increasing.
↳ A positive indicator that the company’s earnings capacity is intact.
🔰 Market Sentiment vs. Fundamentals
✅ The PE ratio drop without a corresponding decrease in earnings shows a recalibration of growth expectations.
↳ Remember, valuation and market sentiment can diverge from a company’s actual performance.
🔰 Timing is Key
✅ Entering when valuation is high can lead to modest returns, even if the company performs well.
↳ Patience and strategic timing are crucial.
🔰 Long-Term Perspective
✅ Tata Elxsi’s stable earnings during a timewise correction show the benefits of holding strong fundamentals over short-term volatility.
🔰 Strategic Takeaway
✅ Look beyond PE ratios—understand the business, sector dynamics, and macroeconomic factors.
↳ Align your investment strategy with market conditions and company performance.
Indian Market, FIIs and their "Foolish" StoriesI am part of Several Social Media forums (on X, Telegram, Whatsapp etc...). In every channel, we forward FII/DII Activity so diligently Every day. But have we ever seen the Big Picture ???
Look at this link
trendlyne.com
For the Past 10 years, FIIs were net buyers only 3 times and the magnitude of such Buys is miniscule compared to the Magnitude of what they Sold. 👆👆👆
And In this 10 year period from 2014 - NIFTY has grown 290% Non-stop - with only 1 year in RED
I Feel personally ashamed that with so much data in hand, we don't do the proper analysis and go behind some TV Analyst and Stupid Finfluencer for so many years in the Trance that India is controlled by FIIs. If they withdraw - our market will be on its knees - begging 🙇♂??? Not possible. That's not the reality at all
Ignore the Noise being fed to us everyday.... Do you own Analysis, Stay Strong, Stand Strong - "On your Own Legs"
If you like my Analysis - Please give me a High-Fi 🖐🖐🖐
Disclaimer:
Stocks-n-Trends is NOT a SEBI registered company. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi--timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
H&S PATTERN - CHEMICAL HOT STOCK - AARTI INDAarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.
Fundamentally : Neutral
Technically : Neutral to bullish
Happy Trading :)
SWANENERGY BREAKOUTSwan Energy Limited (SEL) was originally incorporated in 1909 as Swan Mills Ltd. (SML), a manufacturer and marketer of cotton and polyester textile products in India. Over the years, it has diversified into real estate and is developing a floating storage and regasification unit-based liquid natural gas (LNG) import terminal at Jafrabad in Gujarat.
FUNDAMENTALS
Pros
Strong sales growth of 249%.
Significant profit growth of 584%.
Good liquidity with a current ratio of 3.13.
Manageable debt with a debt-to-equity ratio of 0.55.
Diversified business into real estate and LNG.
Long-standing market presence since 1909.
Cons
High P/E ratio of 76.2, suggesting overvaluation.
Low dividend yield of 0.01%.
Modest return ratios: ROCE 8.28% and ROE 7.03%.
High price-to-book ratio of 3.65.
Total debt of ₹3,440 crore.
Exposure to industry volatility in the LNG sector.
Overall financial strength : 73/100
TECHNICALS
Prices are above 21, 50, 200 day EMA and 200 day MA.
Stock corrected nearly 40%+ from the top.
Weak Correction is suggesting that the supply is fading.
RSI : 63; indicating buying momentum.
MACD Crossover on Daily & Weekly time frame.
Stock was trading in a range for 4 months and finally broke out and retested the level of 680–665.
A teeny-tiny rounding bottom pattern formation.
ACTION
Above 750, it's a big base breakout, so one can capitalise on the momentum for a target of 795 (short-term positional).
For a little longer horizon, can hold it for 892.65 and 987 levels (fundamentally good company)
Aggressive traders can deploy small portion of capital above 750 if crosses with good volume spike.
Safe ones can wait for a retest at 747–755 level.
Now as per technical analysis, SL should be placed at around 645–650ish, but the RR isn't too fair for short term traders, so they can either place SL below the 21-day EMA.
This is just my analysis and research. I shall not be responsible for anyone's loss.
Happy Trading :)