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Ruby Mills Ltd – Steady and Consistent

ruby mills limited

Ruby Mills Ltd

Ruby Mills Ltd Incorporated in the year, 1917 as a Composite Textile Mill mainly manufacturing Cottons. The management of the unit was taken over by the late Shri C N Shah in 1946 and thereafter the mill has been regularly progressing and manufacturing a wide range of products. From 1959 onwards the management has been under the dynamic leadership of the Chairman and Managing Director, Shri M C Shah and has made tremendous progress by way of its product range, quality and performance.

The Ruby Mills Ltd., has two plants. The spinning & weaving plant is located at Dhamni & the process house at Kharsundi close to Bombay-Pune Highway.

Since 1996, The Ruby Mills Ltd., is manufacturing MICRO DOT FUSIBLE INTERLINING & BASIC INTERLINING, in Technical Collaboration with GYGLI TEXTIL AG, Switzerland.

A modern Research & Development Laboratory fully equipped with the latest quality control equipment and recognized by the Government of India supports these manufacturing activities.

The Ruby Mills Ltd has forward integration into a state of the art process house to have a capability of fiber to finished fabric.

The company is a highly modernized Composite Textile Mill in Bombay. The plant is involved in spinning, weaving, processing of textile fabrics. The company’s installed capacity comprises of 21,024 spindles, 65,000 Mts. of woven fabrics. The processing capacity is on an average 1.25 lakh meters.

The plant is manufacturing yarns and fabrics of Cotton / Polyester / Rayon & Blends. The plant has latest generation of machines comprising of Super High Production Cards, Auto Leveller, Draw Frames, Auto Coro Open End Spinning Machines, Auto Coner Winding Machine, and Wide Width Picanol Air Jet & Rapier Weaving Machines. The plant has its own Process House, which is capable of Bleaching, Dyeing & Finishing complete production.

The factories are located 70 kms. South East of Bombay has advantages in terms of easy accessibility, availability of transportation of raw materials and finished goods, well established communication facilities and availability of adequate semi-skilled labor force.

(Company's Official Website)

As per Annual Report 2017

1) Textiles and Real Estate Division

The revenue from the textiles activity was Rs. 17,500 Lakhs as compared to Rs. 18,080 Lakhs in the previous year. The operating profit for the year was Rs. 2,382.44 Lakhs against Rs. 2,455.91 Lakhs in the previous year. The lower turnover and operating profit was due to slackless due demonetisation and uncertainty and lack of clarity on the provisions and implementation of Goods and Service Tax Act (GST). There was disruption of operations due to Power shut down by the Maharashtra State Electricity Board (MSEB) on 07 February, 2017 pursuant to Maharashtra Pollution Control Board (MPCB) instructions due to non-operation of Common Effulgent Treatment Plant (CETP).

The revenue from real estate activity was Rs. 2,715.54 Lakhs as compared to Rs. 3,176.01 Lakhs in the previous year. The operating profit for the year was Rs. 2,313.27 Lakhs as against Rs. 2,715.01 Lakhs in the previous year.

2) Land Development at Dadar

The construction of office building structure is complete as per approved plan under the earlier Development Control Rules (DCR). The State Government has notified modified Development Control Rules in 2012 wherein plans approved under the old Development Control Rules have an option to comply with the new DCR. The Company has filed its application for Occupancy Certificate for the balance floors which is being processed by the Municipal Corporation.

(Source : Company Anual Report 2017)

Anual Result

Ruby Mills Ltd Anual Result

Market Cap: 716.51 Cr.

Current Price: 352.30

Book Value: 206.60

Stock P/E: 19.11

Face Value: 5.00

52 Week High/Low: 457.00 / 286.50

One Can invest in this stock for mid term near 330 Rs-350 Rs