Multibagger penny stock under Rs 35 from textile sector to keep under the radar as Board is likely to announce rights issue or QIP
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 14.28 per share.
Today, shares of Vishal Fabrics Ltd zooms 8.75 per cent to an intraday high of Rs 31.70 from its previous closing of Rs 29.15 with a spurt in volume by more than 1.01 times on BSE. The stock’s 52-week high is Rs 34.75 while its 52-week low is Rs 14.28.
The Board of Directors of the company will be held on Saturday, July 27, 2024, in Ahmedabad; inter alia to consider the following business as under:
- To consider, approve and take on record Standalone and Consolidated Un-Audited Financial Results of the Company for the quarter ended June 30, 2024 (Financial Results).
- Proposal for raising funds through issue of one or more instruments including of equity shares, convertible instruments, any other securities by any of the permissible means including preferential allotment, rights issue, QIP or any combination thereof, in one or more tranches; as may be decided by the Board, subject to such regulatory/statutory approvals as may be required, including the approval of the shareholders of the Company and to appoint necessary intermediaries for this purpose.
- To consider any other business with the permission of the chair.
Earlier, Vishal Fabrics Ltd acquired a 37.72 per cent stake (1,170,500 shares at Rs 135 per share) in Chiripal Textile Mills Pvt Ltd on March 30, 2024, for a total of Rs 158.02 crore. This acquisition makes Chiripal Textile Mills an associate company of Vishal Fabrics. Chiripal Textile Mills is a manufacturer and trader of various yarns and fabrics, with a turnover of Rs 539.03 crore for the financial year ending March 31, 2023. The rationale behind the acquisition is to focus on further development and growth within the textile sector.
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Vishal Fabrics Ltd, a textile company established in 1985 and part of the Ahmedabad-based Chiripal Group, manufactures and distributes a wide range of fabrics including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, they specialize in dyeing, printing, and processing denim and other fabrics for both their collections and client-specific jobs.
Their fabrics come in various compositions like 100 per cent cotton, cotton blends, and modal, and they are a leading supplier of stretch denim. With a focus on innovation, they offer diverse finishes, weaves, blends, and colours. Their extensive production capacity comes from multiple facilities in Ahmedabad, Gujarat, and they boast an impressive list of clientele including well-known international fashion brands.
The company has a market cap of over Rs 600 crore. The company's shares have a PE of 28x, an ROE of 6 per cent and an ROCE of 10 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 14.28 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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