Shree Karni Fabcom Stock: Should you Invest in It

 Shree Karni Fabcom Limited is one of the best  player in the technical textiles industry of India 7 Company is especially  known for its top-tier fabrics & catering demand of different sectors  like shoes,  luggage, garments etc. The good this about the company is that it is focusing on quality and competitive pricing which is helping the company to achieve significant growth with new innovation with excellence.

In Indian Stock market, Shree Karni Fabcom IPO  had received  very good response from All type of Investors due to this reason subscription levels  had far exceeded  the initial offering.  Shree Karni Fabcom IPO price band was also attractive  at Rs 220-227 per share due to this reasons company had received fabulous response  and the retail quota had oversubscribed by more than  141times, while the non-institutional investor category had  subscribed  nearly 80 times.

Today, we will discuss in this article that after such a good response to IPO, will Shree Karni Fabcom stock perform well in the long term or not? Let us understand the business model, Financials Performance of Shree Karni Fabcom.

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Business Model & Products range of Shree Karni Fabcom:

Shree Karni Fabcom offers a wide range of products in the technical textiles industry of India, catering to various sectors such as, roofing, agriculture nets, vehicle covers, tents, armed forces fabric, medical arch supports, sports kits, chairs, shoes, and apparel. But Shree Karni Fabcom company has specialization in manufacturing woven and knitted fabrics, coated fabrics, and products made from 100% polyester to meet specific industry needs. Their production capabilities include weaving, knitting, coating, and embossing processes outsourced to their subsidiary, IGK Technical Textile LLP. Shree Karni Fabcom's products are marketed under the brand 'SKFL', with plans for further expansion into dyeing and bag manufacturing.

Financial Performance of  Shree Karni Fabcom:

Some key financial highlights include a revenue of nearly  ₹127crore, sales growth of nearly  52%, and profit after tax of  aprox. ₹84 crore. face value of ₹10 per share Shree Karni Fabcom Ltd demonstrated solid operational achievements with remarkable revenue growth from ₹3,287.42 lakhs in FY2021 to ₹12,694.65 lakhs in FY2023, alongside increased profitability and equity growth. The Earnings Per Share (EPS) of Shree Karni Fabcom Ltd is ₹11.10. The Price-Earnings (P/E) ratio of Shree Karni Fabcom Ltd ranges between 19.82 to 20.45 for the financial year 2023

Shree Karni Fabcom  had shown Return on Net Worth (RoNW) nearly 21% in FY2023, indicating a promising future driven by financial stability and growth potential.

Investment recommendation on Shree Karni Fabcom Stock: Buy, sell or Hold

As we have discussed lot of factors which are indicating that Shree Karni Fabcom is performing very well and Products of Shree Karni Fabcom are in demand. The sectors in which Shree Karni Fabcom is selling its products all those sectors are always in focus and base in Indian consumption theory. Promising EPS, PE ratio and Growth of the business of Shree Karni Fabcom company is convincing us to give long term “Buy” recommendation in this stock. But Investors should not forget that Every stock has fair value so we will not recommend any investors to Rush & buy this stock. Indian Stock market is already trading at very higher valuations so we can see profit book in the Indian stock market anytime & this profit booking will drag all midcap, small cap stock at the lower levels. It will be safe to accumulate Shree Karni Fabcom stock after some profit booking. Long term Price targets in Shree Karni Fabcom stock are 352rs to 380rs.