Gloster Ltd is a 100% debt free company with a rich history of 141 years. Gloster ltd is a leading manufacturer & exporter of all types of jute & jute allied products, woven & non-woven jute geotex- tiles, treated fabric-rot proof, fire retardant, jute products for interior decoration & packaging of industrial & agricultural produce.
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Originally know by the name Kettlewell Bullen& Company Limited,it was converted and incorporated as a limited company under the provisions of the Companies Act 1913 as Gloster Ltd.
In 1879, it was appointed as the managing agent of Fort Gloster Jute Manufacturing Company Limited which became Fort Gloster Industries Limited subsequently. The House of Bangurs as one of the leading business conglomerates acquired the Company in the year 1954.
In compliance with the change in statute, it ceased to be the managing agent w.e.f 31st December 1969. It however, continued to be the main Promoter and controller of Fort Gloster Industries Limited.
In 1992, the jute division of Fort Gloster Industries Limited was demerged into a separate company called Gloster Jute Mills Limited which was renamed as Gloster Limited (erstwhile). As required by statute, being the holding Company, in the year 1998, the Company was registered as a non-banking financial company (non-deposit accepting) with the Reserve Bank of India.
The National Company Law Tribunal has vide its order dated 19.01.2018 sanctioned a Scheme of Amalgamation of the Company with erstwhile Gloster Limited and post this Scheme the Company has surrendered its NBFC certificate to Reserve Bank of India and the principal business of the Company is manufacturing of jute products. The name of the Company was changed to Gloster Limited vide Certificate of Incorporation dated 09.05.2018 pursuant to the Scheme.
The Company is engaged in manufacturing and exporting of all types of Jute & Jute allied products, Woven & Non-Woven Jute Geotextiles, Treated Fabric-Rot Proof, Fire Retardant, jute products for Interior Decoration and Packaging of Industrial and Agricultural produce. Company also produces jute & cotton shopping bags & made ups. Company exports jute goods to various countries spread over the world and is having its manufacturing facilities located in India.Â
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Company’s two manufacturing units are situated at Bauria, P.O. Fort Gloster, District Howrah in the State of West Bengal. The present management has experience of over 64 years in the Jute industry and running large Jute manufacturing units.
Products
Standard Products
Hessian Cloth/Bags
- Plain/Twill
- HCF
Sacking Cloth/Bags
- A Twill
- B Twill
- DWF
- Others
- Canvas & Tarpaulin
- Leno / Net & Scrim Cloth
Chemical Treated Fabric
- Dyed / Bleached
- Fire Retardant
- Rot Proof
- Water Repellent
Spirally Sewn Bags
Odourless Bags
Geo-Textile
- Soil Savers
- Webbing
- Tape
Horticultural Sheets and Liners
- Dyed / Bleached
- Fire Retardant
- Rot Proof
- Water Repellent
Spirally Sewn Bags
Odourless Bags
Yarn
- Fine Yarn
- Blended Yarn
- Carpet Weft Yarn
- Dyed Yarn
- Twines / Ropes
Non-woven
Felt / Cloth Pieces
Floor Covering & Home Furnishing
- Woven Flat Bed Carpet
- Matting
- Rugs
Promotional Consumer Products
- Shopping Bags
- Utility Bags and Made Ups
The Parent Company is a leading manufacturer & exporter of all types of jute & jute allied products, woven & non-woven jute geotex- tiles, treated fabric-rot proof, fire retardant, jute products for interior decoration & packaging of industrial & agricultural produce. The Parent Company also produces jute & cotton shopping bags & made ups. The Parent Company exports jute goods to various countries spread over the world and is having its manufacturing facilities located in India.
SUBSIDIARY COMPANIES
Gloster Lifestyle Limited & Gloster Specialities Limited continue to be wholly owned subsidiaries of your Company. During the year under review Network Industries Limited has become wholly owned subsidiaries of the Company.
Further during the year a new wholly owned subsidiary Gloster Nuvo Limited has been incorporated.
Gloster Lifestyle LimitedThe Gross revenue of the Company stood at ` 38.50 lakhs (Previous Year `47.92 lakhs). Profit after tax for the year stood at ` 24.02 lakhs (Previous Year ` 38.20 lakhs) and Total Comprehensive Income stood at ` 17.36 lakhs (Previous Year `53.42 lakhs).
Gloster Specialities Limited
The Gross revenue of the Company stood at 49.85 lakhs . Profit after tax for the year stood at 14.05 lakhs and Total Comprehensive Income stood at 6.94 lakhs.
Network Industries Limited
The Company became a wholly owned subsidiary of Gloster Limited pursuant to Order dated 4th July 2019 passed by the National Company Law Tribunal, Kolkata.
The Gross revenue of the Company stood at Nil and Loss for the period 04.07.2019 to 31.03.2020 stood at 6.99 lakhs.
Opportunities
- More & more concerns are being shown for reducing carbon foot prints world over and this opens doors for use of more biodegradable & sustainable products made from natural fibers;
- Demand for Company’s industrial as well as promotional Jute goods like Hessian & Sacking, lifestyle products & other made ups have grown over the years and is expected to see further increase;
- The Government is incentivizing export through schemes such as Merchandise Exports from India Scheme (MEIS) and Rebate of State
- Particulars
- Segment revenue by location of customers
- and Central Taxes and Levies (RoSCTL) on export of garments and made ups.
Financials
- Company has significant amount of investments In stocks , pms , Mutual Funds and other Investments as well.
- Book value of the stock is around 1700 Rs as per the latest balance sheet.
- Company is completely Debt Free.
- Operating profit margins of the company has been above 12%
- Promoter holding is steady with almost 72.5% shares held by promoters
- Apart from that LIC and Oriental Insurance holds around 16% shares of the company thereby leaving very less free float in the market.
- In case Promoters of the company if wish to delist the stock it could be a lot easier to do so given that the LIC and Orietal Insurance agree to sell their shares.
Top Equity Shares held by Gloster Ltd (As per March 2020 Records)
Company and Quantity
- AU Small Finance Bank – 3,944
- Axis Bank Ltd. -2,468
- Bajaj Finance Ltd. – 1,330
- Cholamandalam Investment and Finance Company 2 Ltd – 7,910
- Container Corporation of India Ltd. – 3188
- HDFC Bank Ltd. – 1,630
- HDFC Life Insurance Company Ltd. – 2,448
- ICICI Bank Ltd. – 10,936
- Kotak Mahindra Bank Ltd. – 5,607
- L&T Technology Services Ltd. – 1281
- Page Industries Ltd. -204
- SBI Life Insurance Company Ltd. – 2,023 + 6,118
- State Bank of India – 2868 + 50,000
- Tech Mahindra Ltd. – 2,874
- Voltas Ltd. – 7,312
- Bombay Burmah Trading Corpn. Ltd. – 15,000
And Many more.
Conclusion -:
Given that company has around 91 + 22 crs approximately invested in quoted securities + funds and given that market has moved up significantly , considering the slightest 35% increase in the overall valuation of the portfolio can cause to increase its book value by 272 Rs. However it may be the case that despite significant holding of the company , It may fail to deliver any meaningful returns and those invested in the stock may get stuck due to underperformance of the stock thereby turning it to be a dead investment . Also due to very low free float in the market and highly illiquid counter of the stock investors may face difficulty in selling the stock . Thus before investing these few points must be taken into the consideration. Apart from that the stock trades at a very low pe of just 9 and given its investments and sales of around 500cr with opt of above 12% which if expected to continue this stock is worth exploring for long term.
Please note that above expressed are our own views. Users are requested to take their own decision regarding investments. No member of DARKHORSESTOCKS would be responsible for any loss.
