Volume Spurt Alert: Textile Penny Stock Under Rs 40 Surges 17 Per Cent on March 24
The stock is up by 91.5 per cent from its 52-week low of Rs 18 per share.
On Monday, shares of Vishal Fabrics Ltd surged 17 per cent to Rs 34.47 per share from its previous closing of Rs 29.47 per share. The stock’s 52-week high is Rs 42.88 per share and its 52-week low is Rs 18 per share. The shares of the company saw a spurt in volume by more than 2 times.
Vishal Fabrics Limited has expanded its stake in Quality Exim Private Limited (QEPL) by acquiring 1,92,000 equity shares for ₹49,920,000, raising its ownership from 28.03% to 37.92%. This related-party transaction, conducted at an arm's length price of ₹260 per share based on a valuation report, aims to bolster QEPL's operations in the textile sector, which includes manufacturing, processing, and trading yarn and fabrics. QEPL, an associate company since March 2024, reported a turnover of ₹223.33 crore for FY 2023-24, with consistent performance over the past three years, and the acquisition, paid in cash, reinforces Vishal Fabrics' strategic involvement in QEPL's growth.
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 600 crore.
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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 91.5 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.