Spinning mills have had an extraordinary year this fiscal, getting a higher price for yarn spun from cotton inventories bought at a lower price. But after the windfall, the operating margin of spinning mills are expected to come under pressure next fiscal as they may not be able to pass on the higher cotton cost to fabric and garment makers.
Domestic cotton prices, after looking to soften around Rs 56,000 a candy (of 356 kg), are ruling at Rs 60,000-60,500.Most spinning mills have procured three-fourths of cotton required for next fiscal at a higher price that may average 80 per cent higher at Rs 140 a kg for the remaining period of this cotton season (October-September).
The increase in cotton prices this season will push up spinners' procurement cost by 30-35 per cent for 2011-12 fiscal. In contrast, cotton yarn prices will rise about 20 per cent in the same period, with domestic fabric producers likely to resist any sharp spike in prices.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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