Gujarat-Based Textile Penny Stock Under Rs 40 Jumps After Acquiring 1,73,825 Equity Shares of Chiripal Textile Mills Pvt Ltd
The stock is up by 69.4 per cent from its 52-week low of Rs 18 per share.
On Tuesday, shares of Vishal Fabrics Ltd jumped 8.4 per cent to Rs 30.49 per share from its previous closing of Rs 28.13 per share. The stock’s 52-week high is Rs 42.88 per share and its 52-week low is Rs 18 per share.
Vishal Fabrics Limited has announced an update regarding its investment in Chiripal Textile Mills Pvt Ltd (CTMPL), as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has acquired 1,73,825 equity shares of CTMPL for Rs 3,49,38,825, for Rs 201 per share, based on a valuation report, on March 24, 2025. This transaction increases Vishal Fabrics Limited's equity shareholding in CTMPL from 37.72 per cent to 42.36 per cent, solidifying CTMPL's status as an associate company. CTMPL, involved in textile manufacturing and processing, reported a turnover of Rs 530.55 crore for the financial year ending March 31, 2024.
This acquisition constitutes a related party transaction, as CTMPL is already an associate company of Vishal Fabrics Limited, with the promoter group having an interest in the entity. The acquisition is conducted at an arms-length basis, to further develop and enhance the business. CTMPL's authorized share capital is Rs 9,72,22,250, and its paid-up share capital is Rs 37,45,000. CTMPL is engaged in manufacturing, weaving, bleaching, dying, processing, mercerizing, printing, sizing, importing, exporting, purchasing, selling, and dealing in yarn and fabrics. The turnover for the past three financial years demonstrates consistent performance, with Rs 539.03 crore in FY 2022-23 and Rs 450.93 crore in FY 2021-22.
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About the Company
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Gujarat-based Chiripal Group, manufactures and distributes a wide range of fabrics, including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, it specializes in dyeing, printing, and processing denim and other fabrics for both its collections and client-specific jobs. Its 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 500 crore.
According to Quarterly Results, the net sales increased by 5 per cent to Rs 403.7 crore and net profit increased by 32 per cent to Rs 9.6 crore in Q3FY25 compared to Q2FY25. In its nine-month results, the company reported net sales of Rs 1,128.4 crore and a net profit of Rs 21.7 crore in 9MFY25. Looking at its annual results, the company reported net sales of Rs 1,450 crore and a net profit of Rs 21 crore in FY24.
The stock is up by 69.4 per cent from its 52-week low of Rs 18 per share. The company's promoters have a commanding 69 per cent ownership stake, while FIIs hold 3.44 per cent and public shareholders own 27.56 per cent. Investors should keep an eye on this micro-cap textile stock.
Disclaimer: The article is for informational purposes only and not investment advice.