This textile micro-cap multibagger reports 6900 per cent YoY PAT growth after gaining 400 per cent in just one year

The stock generated a return of more than 42 per cent in the previous month.

Filatex Fashions, engaged in the manufacturing and sale of knitted socks, has announced excellent results for quarter and half year ended September 30, 2022. The stock is currently locked in the upper circuit at Rs 23.25 per share. Since November 1, the stock has been setting fresh 52-week highs and is continuously hitting back-to-back upper circuit. The stock generated a return of more than 42 per cent in the previous month. While the stock has soared by 225 per cent over the last six months, it has produced a stunning return of 405 per cent over the last year.  

For the half year ended September 30, 2022, the company saw a massive jump of 472 per cent in its revenues YoY, from Rs. 14.24 crores (H1FY22) to Rs. 81.59 crores (H1FY23). For the corresponding period, the company witnessed a multifold jump in its PAT, which grew 6900 per cent YoY, from Rs. 0.06 crores (H1FY22) to Rs. 4.60 crores (H1FY23). For the quarter ended September 30, 2022, the company delivered PAT rising from a loss of Rs. 0.04 crores (Q2FY22) to a profit of Rs. 4.56 crores (Q2FY23).  

Recently, Filatex Fashions had announced that it intends to acquire 51 per cent of the Equity Share Capital in Isabella (Pvt.) Limited, Sri Lanka for a consideration of Rs 61.03 crores approximately. In this regard, the company is in the process of reaching certain preliminary understanding for the proposed Acquisition/ Subscription of Shares of Isabella (Pvt.) Limited, which is into the business of manufacturing apparels and related products in Sri Lanka.  

Recently its board had approved raising of funds through issuance of Foreign Currency Convertible Bonds (FCCBs) not exceeding Rs. 813.86 crores on private placement basis. Also, the board has approved expansion and strengthening of the existing business by - manufacturing of premium quality socks by capacity enhancement/ further modernization and expansion into production of other garments and allied products.  

Filatex Fashions is the major supplier of socks of various sizes and designs to reputed companies and brands like Maxwell (VIP Group), Fila India, Adidas, Park Avenue, Tommy Hilfiger, Metro etc. The company has also been producing socks for the license holders like Walt Disney, Warner Brothers, Planet, Mickey Mouse, Simpsons and 32 other licentiates. Other brands include Bella, etc. The company is a major supplier to E-commerce giants like Amazon, Flipkart, Snapdeal, Shop clue etc.