This textile stock has a license to sell Disney and Marvel merchandise; do you own it?

The share surged 12 per cent on the day.

On October 7, Himatsingka Seide Ltd is among the Top Gainers. Shares of the company surged 12 per cent and closed at Rs 107.6. The stock opened at Rs 95.85 and made an intraday high and low of Rs 109.9 and Rs 95.8, respectively.    

Himatsingka Seide Ltd is a global textile company that designs, develops, manufactures, and sells a wide range of home textile products. It has some of the biggest installed capacities in the world for producing fine-count cotton yarn, drapery and upholstery fabrics, and bedding and bathroom products.   

The company holds exclusive licence rights to more than 12 international brands like Calvin Klein, Tommy Hilfiger, Kate Spade, Royal Velvet, Barbara Berry, and Waverly. 

To increase its presence in the European region, it also entered into a licencing agreement with the Walt Disney Company to manufacture and distribute a wide range of home textile products inspired by archives and characters from all of its franchisees, including Disney, Marvel, Pixar, and Lucas.   

Sales and net profit for FY22 on a combined basis were Rs 3198 crore and Rs 141 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 10.2 per cent and 9.47 per cent, respectively.    

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 638 crore and a net loss of Rs 55 crore.   

 About the shareholding pattern, 47.57 per cent of the company’s stake is owned by the promoters, 3.15 per cent by FIIs, 9.53 per cent by DIIs, and the rest 39.75 per cent by non-institutional investors.    

The company has a market capitalisation of Rs 1013 crore and is currently trading at a PE multiple of 35.6x. The stock has a 52-week high and low of Rs 312 and Rs 87.3, respectively.