Company now has a substantial presence in synthetic yarn segment. Its customer base has grown to include manufacturers of garments and home textiles.
The acquisition of both IRTL and Amit Spinning would boost its exports further.
The Uzbekistan deal gives it a considerable presence in the overseas markets.
Uzbekistan is the world's fifth-largest cotton producer, with a four percent share of the total output.
Apart from its proximity to Eastern European markets, manufacturing costs in Uzbekistan are lower by 10 per cent due to cheaper labor, power and other fiscal benefits provided by the government.
Spentex has acquired companies at good prices and hence the return on capital employed will be high. Spentex has been successful in acquiring stressed assets with good revenue and profit potential.
The share price of Spentex has risen 41 per cent in the past six months and the stock trades at a trailing 12-month price-to-earnings multiple of 22x.
marketing@alchempro.com
