Multibagger Small-Cap Company Bags Order Worth Rs 20 Crore – Net Profits Surged from 1 Crore to Rs 10 Crore!
The company’s shares have delivered an impressive multibagger return of over 250 per cent to its shareholders.
This Small-Cap company that manufactures and exports garments in India has announced that it has secured an order from one of a client. The company produces kids' wear, including shorts, joggers, capris, tees, rompers, sleepsuits, pajamas, winter wear, and infant wear.
Karnika Industries Ltd has received a significant order worth Rs 20 crore from a client for the supply of kids' garments under the brand name “Karnika.” The contract is to be completed by the end of March 2025. This order is expected to expand the customer base and contribute to the company’s profitability.
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Currently, the shares of Karnika Industries Ltd are trading at around Rs 274.80 per share on the NSE. The company’s current market capitalization stands at Rs 340.74 crore. Additionally, the shares have delivered an impressive return of over 260 per cent compared to the IPO price of Rs 75 each.
The company doesn’t provide the Quarterly Results, as per the half-yearly results in March 2024, Karnika Industries Ltd recorded a revenue of Rs 63 crore. The operating profit stood at Rs 9 crore. The net profit stood at Rs 6 crore. Looking at the annual performance, the company generated a revenue of Rs 126 crore in FY24. The operating profit for FY24 was Rs 18 crore with an operating profit margin of 14 per cent with a net profit of Rs 10 crore compared to a profit of Rs 8 crore. The company’s net profit was Rs 1 crore in FY21 which surged to Rs 10 crore in FY24.
According to the company's shareholding pattern, the promoters hold a significant 73.39 per cent stake while the public investors own 26.61 per cent of the shares.
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Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.