Stock Review: PODDAR GROUP

PODDAR GROUP 's Siyaram Silk Mills is one of the few textile companies which have been making profits consistently for the last 15 years. It derives 80% of its revenues from blended fabric. Around 85% of the company's raw material is polyviscose. This has ensured higher return on capital employed and less dependence on cotton for the company. A strong distribution network of more than 60,000 franchise and retail units has helped the company to retain its brand power among the masses. A good track record of dividends and low debt on its books has ensured the company maintains its growth momentum. Currently, the company is trading at a priceto-earnings multiple of six times. This is significantly lower to its peers such as Donear Industries and Bhilwara Spinners