Vijay Kedia’s Portfolio Textile Stock To Keep Under Radar As Board Announces Positive Results, Bonus Preference Shares & Rs 4/Share Dividend

The stock is up by 74 per cent from is 52-week low of Rs 411 per share.

On Monday, shares of Siyaram Silk Mills Ltd gained 2.07 per cent to Rs 715.90 per share from its previous closing of Rs 701.40 per share with an intraday high of Rs 731 and an intraday low of Rs 695.80. The stock’s 52-week high is Rs 743.05 and its 52-week low is Rs 411. The shares of the company saw a spurt in volume by more than 1.05 times on BSE.

Siyaram Silk Mills Limited, established in 1978 and headquartered in Mumbai, India, is a prominent player in the Indian textile industry. Renowned for its high-quality fabrics and apparel, the company offers a diverse range of products made from various blends, including poly viscose, cotton, wool, linen, bamboo, and stretch. Through its extensive distribution network, Siyaram's brands have gained popularity among the Indian population, providing them with access to affordable yet stylish fashion options. With its strong manufacturing and retailing capabilities, Siyaram has become a trusted name in the Indian textile market.

Siyaram Silk Mills Ltd., a prominent player in the textile industry, has unveiled its financial performance for the second quarter and first half of the fiscal year 2024-25. The company's total income for Q2FY25 reached Rs 629 crores, marking a 5 per cent year-on-year increase compared to Rs 597 crores in the corresponding period of the previous year. This growth can be attributed to the strong demand for its high-quality blended suitings, shirtings and apparels.

Furthermore, the company's EBITDA for Q2FY25 surged by 10 per cent to Rs 110 crores, up from Rs 100 crores in Q2FY24. This impressive performance resulted in an EBITDA margin of 17.5 per cent for the quarter, a slight improvement over the 16.7 per cent recorded in the same period last year. The company's net profit after tax (PAT) for Q2FY25 also witnessed growth, reaching Rs 68 crore compared to Rs 61 crore in Q2FY24. This translated to a PAT margin of 10.9 per cent for the quarter, marginally higher than the 10.3 per cent achieved in Q2FY24.

To reward its shareholders, the company has declared an interim dividend of Rs 4 per equity share for the financial year 2024-25. The Company proposes to issue bonus Preference Shares to its shareholders by utilizing its general reserves, which currently stand at Rs 1,074.70 crore as on September 30, 2024. The Bonus Preference Shares will be issued in two series: Series I and Series II, with a ratio of 4:1 and 3:1, respectively, for every equity share held. The Bonus Preference Shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited. The Series I and Series II Preference Shares will have a tenure of 3 years and 5 years, respectively, and will carry a coupon rate of 9 per cent per annum, payable annually.

In addition to its strong financial performance, Siyaram Silk Mills Ltd. has made significant strides in its retail business. The company has launched two new retail brands: ZECODE and DEVO. ZECODE, a fast-fashion brand, caters to urban consumers seeking trendy and affordable apparel. DEVO, on the other hand, offers a range of ethnic clothing that celebrates India's rich cultural heritage. These new brands are expected to further strengthen the company's market position and drive future growth.

The company has a market cap of over Rs 3,200 crore and as of September 2024, an ace investor, Vijay Kedia owns 45,37,009 shares or 1 per cent stake in the company. The shares of the company have a PE ratio of 13 whereas the industry PE ratio is 26 with an ROE of 16 per cent and an ROCE of 21 per cent. The stock is up by 74 per cent from is 52-week low of Rs 411 per share. Investors should keep an eye on this small-cap textile stock.

Disclaimer: The article is for informational purposes only and not investment advice.