Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Mohota Industries Limited manufactures and sells yarn and fabrics primarily in India. The company offers various synthetic/cotton/polycotton ring spun yarns; and cotton, single and double dyed, cross dyed, and grey/RFD, as well as plain, twill, and satin bleached and dyed fabrics. It also exports its products. The company was formerly known as The Rai Saheb Rekhchand Mohota Spinning & Weaving Mills Ltd. and changed its name to Mohota Industries Limited in November 2017. The company was founded in 1898 and is headquartered in Hinganghat, India.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT