Heavy Buying Alert: Multibagger Textile Stock Hit Upper Circuit & 52-Week High After Announcing 4:1 Bonus Share
The stock is up by 50 per cent from its 52-week low of Rs 3,116.10 per share and gave multibagger returns of 2,500 per cent in a decade.
On Monday, one of the Top Gainers on BSE & NSE, shares of Garware Technical Fibres Ltd hit a 20 per cent upper circuit and made a new 52-week high of Rs 4,742.45 per share from its previous closing of Rs 3,951.60 per share. At the closing bell, shares of the company were trading at Rs 4,650 per share, up 17.66 per cent with a spurt in volume by more than 11 times.
Garware Technical Fibres Ltd an ISO 14001:2015and ISO 9001:2015 certified company is a leading player in Technical Textiles specializing in providing customized solutions to its customers worldwide. Globally, the company is known for its applied innovation in the field of sports, fisheries, aquaculture, shipping, agriculture, coated fabrics and geo-synthetics. The company's products are manufactured in state-of-art facilities at Wai and Pune and marketed in more than 75 countries.
Results: The company delivered strong financial performance in the second quarter and first half of the fiscal year 2025. Net sales surged 28 per cent year-over-year to Rs 420.6 crore in Q2FY25, compared to Rs 328.3 crore in the same period last year. This growth momentum continued in the first half, with net sales increasing 16 per cent to Rs 756.8 crore. The company's profitability also improved, with a 29 per cent year-over-year increase in profit before tax to Rs 87.6 crore in Q2FY25. Consequently, net profit after tax rose 26 per cent to Rs 66 crore. For the first half, profit before tax and net profit after tax grew 20 per cent and 18 per cent, respectively, to Rs 149.8 crore and Rs 112.7 crore.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Corporate Announcement: The company proposes to issue 7,94,12,676 new fully paid-up equity shares of Rs 10 each as a bonus issue in the ratio of 4:1. This means that for every 1 existing share, shareholders will receive 4 new shares. The bonus shares will be issued out of the General Reserve created from the company's profits as of March 31, 2024. Post-bonus issue, the company's equity share capital will increase to Rs 99,26,58,450, comprising 9,92,65,845 shares. The required free reserves and share premium for this bonus issue are estimated to be Rs 79,41,26,760. As of March 31, 2024, the company had a General Reserve of Rs 20,908.50 lakh, a Capital Reserve of Rs.119.40 lakh, and a Capital Redemption Reserve of Rs 2.
The company has a market cap of over Rs 9,000 crore with a PE of 40x, an ROE of 19 per cent and an ROCE of 23 per cent. The stock is up by 50 per cent from its 52-week low of Rs 3,116.10 per share and gave multibagger returns of 2,500 per cent in a decade. Investors should keep an eye on this textile stock.
Disclaimer: The article is for informational purposes only and not investment advice.