100 per cent from its 52-week low of Rs 14.28: Heavy volume breakout in this textile stock under Rs 35; Rockets over 17 per cent today!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 14.28 per share.
Today, shares of Vishal Fabrics Ltd rocketed 17.8 per cent to an intraday high of Rs 30.40 from its previous closing of Rs 25.81 with a spurt in volume by more than 4 times on BSE. The stock also made a new 52-week high of Rs 30.40 while its 52-week low is Rs 14.28. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Earlier, Vishal Fabrics Ltd acquired a 37.72 per cent stake (1,170,500 shares at Rs 135 per share) in Chiripal Textile Mills Pvt Ltd on March 30, 2024, for a total of Rs 158.02 crore. This acquisition makes Chiripal Textile Mills an associate company of Vishal Fabrics. Chiripal Textile Mills is a manufacturer and trader of various yarns and fabrics, with a turnover of Rs 539.03 crore for the financial year ending March 31, 2023. The rationale behind the acquisition is to focus on further development and growth within the textile sector.
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Ahmedabad-based Chiripal Group, manufactures and distributes a wide range of fabrics including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, they specialize in dyeing, printing, and processing denim and other fabrics for both their collections and client-specific jobs.
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Their 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. The company's shares have a PE of 28x, an ROE of 6 per cent and an ROCE of 10 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 14.28 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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