Sumeet Industries.. CMP 28... Multibagger in Making....

Friends,

I came across Sumeet Industries recently… and found it very interesting story…. It has all guts to emerge as a potential multibagger in years to come…… I believe still the company is in nascent stage…. Good Things has started to come out now….

Market Cap : 115 Crores

Turnover : 370 Crores… ( 3 times from MCAP)

66% of Stocks are in strong hands…

The company started as a yarn manufacturing unit and has now grown in a huge conglomerate with various businesses with an annual turn over of Rs. 1200 million (USD 27 million).

See the recent announcements at bseindia website… they are quite interesting….

Sumeet Industries Ltd to Invest 530 Crores in the Green Field Project of 200000 tons per annum of new continous Poly Condensation (CP) Plant in next two years and further expansion in the production capacity of POY and FDY by 47000 TPA and another 26 MW Gas Based Genset Captive Plant.

Chairman Said that company is getting overwhelming response in the quality of POY/FDY produced from recently commissioned project and full results of this project will reflect in this year balance sheet. They are expecting to achieve turnover of 700 Crores in this financial year…. It means Just double from current turnover…. There are futher new mega expansion programs yet to be announced.,…..

In the first phase of expansion production capacity of POY and FDY will be increased from 53000 TPA to 100000 TPA(Just double) and setting up another 6MW Gas Based power Plant with total project cost of 130 Crores…. After completion of this expansion the total turnover of company will be increased by Rs200 Crores and EBIDTA by 40 Crores….

In the second phase of Expansion plan, new green field Project of 200000 TPA continous Poly condensation Plant (CP) will be setup to manufacture the Bright FDY Yarns, POY Yarns, Yarn Grade and Bottle Grade Pet Chips and setting up another 20MW Gas Based Power Plant with total project cost of 400 Crores… After completion of this project Company will achieve record turnover of 2500 Crores ………

There will be issue of Equity shares up to an amount of 60 crores through QIP/ADR/GDRs…… and this is going to be very interesting…. I don’t know at which price they will place share but guess is that it will be much higher….

Also they are going to allot preferential warrants to promoters upto a amount of 30 Crores….

Friends, this is just the beginning for this company to become a true multibagger….. it is showing all signs of a multibagger……

Till now no big brokerage house is holding its stocks...... I am sure everybody will try to catch it after a timeframe of 6 months.. when the real results will start flowing in........ Just watch it....