Tuesday, August 11, 2015

KG Denim - Buy on declines

Equity Research team @ Smart Investor recommends a buy on declines for KG Denim.

Company Background :

KG Denim Limited is a denim and apparel fabric manufacturer, which caters to fashion brands and retailers across the world. The Company’s product catalogue includes: denim, apparel fabric, home textiles and apparels. The Company’s denim division offers: Authentic Ring Denims, Selvedge Denim, Shirtings, Organic or Bio Denims, Comfort and Power Stretch, Work wear Denim in Cotton and Cotton Polyester and Coated Denim, among others. 

The Apparel fabric products include: Stretch twills, Jean Twills and Stretch, with or without lycra. The Home textiles range includes a blend of cotton and natural fibers such as wool, linen and fiber blend. It offers products, such as Bed range, Bath range, Kitchen range and processes. The apparel division offers products, such as Jeans, Cargos, Carpenter styles, Ladies trousers and wrinkle free pants, among others. The Company’s dyed fabrics division manufactures fabrics suitable for casual wear, as well as formal wear for men, women, and kids.

Technical Analysis :

The charts of the company look quite promising.  From levels of Rs.20 the scrip has doubled in the last 6 months.   On a monthly basis too the scrip has delivered 40% returns.

Our Recommendation :

The stock has potential to break the resistance and reach the price target of Rs.100 by Mar 2016. Buy the stock with a stop-loss at Rs. 37.

Equity Advisor

Smart Investor
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