Date:16/12/2006 URL: http://www.thehindubusinessline.com/2006/12/16/stories/2006121605841500.htm

Back Suryajyoti Spng: On re-rating hopes

The stock of Suryajyoti Spinning, which has seen a 22-per cent rise over the past one month, ended at Rs 62.05, up almost 5 per cent on the BSE on Friday.

Analysts tracking the company say there maybe a re-rating on the cards. The company's foray into more value-added products within the yarn business as well other segments of the textile chain, is expected to enhance overall margins and profitability. Suryajyoti is currently engaged in manufacturing of cotton and synthetic yarn for the domestic as well as the export market.

However, its richer product mix is expected to push it up the value chain from being a pure yarn manufacturer, to manufacturing specialty/value-added bottom-weight fabrics. Analysts said this fabric will largely be used for making jackets and bottom wear and will be supplied to domestic brands such as ColorPlus, Black Berry, Louis Philippe, Allen Solly, Indian Terrain, Madura Garments and foreign brands as well such as Versace, Diesel, Gap and Dolce & Gabana, etc.

The company is reportedly evaluating possibilities for a tie-up with a foreign partner to better understand and expand in this business.

Deeptha Rajkumar