Sarla Performance Fibers Ltd. share price target

We maintain our BUY on Sarla Performance Fibers with a revised TP of Rs67 as we value the company based on our conservative adj. OCF based methodology. We expect the domestic volumes to grow by high single digit on the back of increasing capacity in the industrial/performance yarn segment by 700MT while the Nylon66 capacity would be increased to 1600MT from H2FY19. Further the company could take marginal price hikes to mitigate the impact of increase in RM prices. Operating loss of Sarla Flex to reduce to Rs45mn in FY19E from Rs104mn in FY18 would add to margins. Lower debt, improving working capital further gives us comfort while...

Sarla Performance Fibers Ltd. (Sarla), is engaged in the business of specialty yarn and an 100% export oriented unit with the company's head office located in Mumbai. The company's segments can be divided into three parts: commodity yarn, industrial yarn and performance yarn. After beginning as a manufacturer of commodity yarns, the company has successfully shifted its focus and established itself as a manufacturer of specialized and higher value added yarns. Over the years, SPFL has expanded its activities within India as well as overseas through creation of new facilities and the expansion of existing facilities. With clients in all major countries across the globe & a...

Investor's Delight: Sarla Performance Fibers Ltd. (SPFL) - Visit Note Established in 1995, SPFL is engaged in the business of manufacturing specialized and high margin polyester and nylon yarn. The Company has two manufacturing facilities in Silvassa with a capacity of 11,900 TPA and an in house dyeing plant with a capacity of 3,200 TPA. In addition, SPFL has windmill capacities in Satara (2 MW), Sangli (4 MW) and Vapi (1.25 MW). SPFL is the only Indian...