Low PE multibagger textile stock & FIIs bought 6,05,000 shares: Company entered into ToT agreement with DRDO, Ministry of Defence
The stock gave multibagger returns of 180 per cent in just 1 year and a whopping 575 per cent in 3 years.
Mafatlal Industries Limited (the Company) signed a ten-year Technology Transfer Agreement (ToT) with the Defence Research Laboratory (DRL) Tezpur, Defence Research and Development Organisation (DRDO), Ministry of Defence. This collaboration allows the Company to manufacture and sell anti-microbial bed sheets to the Indian Armed Forces and other government agencies, expanding the Company's product range and market presence in the defence sector with advanced hygienic products. The details of the consideration paid are confidential.
Mafatlal Industries Ltd, a part of the Arvind Mafatlal Group for over 118 years, is a major player in textile manufacturing in India. It manufactures and trades textiles from its units at Nadiad and Navsari. The company offers a wide range of products including garments, fabrics for men and women, upholstery items, uniforms for schools and corporates, and personal hygiene products. It sells its products under various brands like Mafatlal Healthcare, Coocoo, UNICHOICE, MEDIMEF, and Frolica. Mafatlal Industries is also diversifying its product portfolio by entering new sectors such as health & hygiene and digital infrastructure.
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The company has a market cap of over Rs 1,100 crore and has delivered good profit growth of 19.5 per cent CAGR over the last 5 years. In FY24, FIIs took a fresh entry and bought 6,05,000 shares. The shares of the company have a PE of 12x whereas the industry PE is 20x.
The shares of the company saw a spurt in volume by more than 1.01 times on BSE. The stock gave multibagger returns of 180 per cent in just 1 year and a whopping 575 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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