Multibagger penny stock below Rs 2.5 locked at upper circuit: This textile company has 30-year contract with Aditya Birla Group for linen weaving and supplies uniforms to government!

This penny stock, with a market cap of Rs 11.9 crore, was locked at an upper circuit limit of 20 per cent on Friday.

In a remarkable turnaround, benchmark indices broke a three-day losing streak and concluded on a positive note, buoyed by favorable global cues and widespread buying across sectors.

Following three days of decline, the markets experienced some relief, gaining over half a per cent. Firm global cues spurred a gap-up start in Nifty, leading to a range-bound movement until the end. Meanwhile, a mixed trend on the sectoral front saw FMCG, metal, and energy sectors rising, while banking continued to face pressure. Broader indices maintained their outperformance, each gaining over a per cent.

Friday's market action signaled the formation of a Doji or High Wave-type candle pattern, albeit not a classical one.

One penny stock that captured the attention of market participants is Minaxi Textiles Ltd. This penny stock, with a market cap of Rs 11.9 crore, was locked at an upper circuit limit of 20 per cent on Friday. The stock has advanced by more than 40 per cent in the last month and an impressive 281 per cent over the last three years as a result it has delivered multibagger returns. 

Minaxi Textiles Ltd. is an India-based public limited textile company incorporated on March 14, 1995, transitioning from a partnership structure. The company is engaged in weaving Synthetic Grey cloth for Suiting & Shirting and also supplies uniforms to government and semi-government departments through tenders. Notably, the company holds a 30-year contract with Aditya Birla Group to weave Linen for them. Minaxi Textiles Limited also serves the local fabric market in major cities in India.

Founded by Mr. Kanubhai Patel, who served as Chairman and Managing Director until his retirement in 2006-07, the company saw new management take charge in 2009, with Mr. Bharatbhai Patel becoming Managing Director.

Under the expert leadership of Mr. Bharatbhai Patel, Minaxi Textiles Ltd. experienced remarkable growth, surpassing a turnover of 380 million in 2011. The company has steadily increased the strength of its weaving machines in the last two consecutive years and plans to continue this expansion until the end of next year. Established with the goal of supplying quality fabric at competitive prices, Minaxi Textiles has made a significant impact on the market from the beginning. Offering a diverse range of fabrics at affordable prices has gained traction with both domestic and international customers.

The company is primarily engaged in weaving and manufacturing Cotton and Cotton Mixture Fabrics. It also weaves synthetic grey cloth for suiting and shirting, and supplies uniforms to government and semi-government departments through tenders. Specializing in fancy suiting fabrics, the company's product range includes suiting lycra fabric, cotton quilts, broken twill fabric, and satin fabric. With approximately 40 Picanol Gamma weaving machines, Minaxi Textiles Ltd. remains committed to its mission of providing high-quality fabrics to a growing customer base.

Disclaimer: The article is for informational purposes only and not investment advice.