Stock under Rs 50: This textile stock jumps nearly 38 per cent in last three days, watch out!

Going forward, company also aims substantial debt reduction, de-leverage balance sheet while adopting asset-light business model for future expansion.  

Share price of SVP Global Textiles Ltd, one of the largest compact cotton yarn manufacturers, has surged around 38 per cent in the last three trading sessions. On Wednesday, at around 2 PM, the stock is seen trading near its day’s high at Rs 42 and is up by 6 per cent.   

The Company announced its financial numbers for the Q3FY23 on January16. Company reported strong EBITDA margin and was able to turnaround the operations during the quarter.   

EBITDA for Q3FY23 was reported at Rs.75.83 crore – higher by 95.7 per cent Q-o-Q from Rs. 38.75 crore reported for Q2FY23. During the quarter, company was able to nearly double the EBITDA Margins to 25.12 per cent and to reduce losses significantly. Going forward, company also aims substantial debt reduction, de-leverage balance sheet while adopting asset-light business model for future expansion.  

Total Income from Operations of Rs. 301.81 crore for the quarter ended December 2022, rise of 2.62 per cent Q-o-Q from Rs. 294.10 crore reported in the quarter ended September 2022. The company has improved on operational margins and was able to reduce the loss from Rs. 20.35 crore in Q2FY23 to Rs. 5.54 crore in Q3FY23.   

Stock price of the company was around 38 per cent from the lows of Rs. 30.55 per share on January 23 and touched high of Rs. 43.50 per share on January 24. Interestingly, the stock has seen a huge surge in the volume in the last couple of trading sessions and moreover, good quantity of deliver was seen in the stock.   

SVP Global Textile Ltd has a vision to be a fully integrated textile company from Fibre-to-Fashion with forward integration into Fabric, Technical Textiles and Garments to create a brand of its own.