200 Per cent Multibagger Returns in 6 Months: Company Posts Stellar Q2 FY25 Results – Profit Nearly Triples, Revenue Up 61 Per cent; Stock Hits Upper Circuit

The company’s shares have delivered an impressive return of over 160 per cent in just 3 months.

This Small-Cap company, founded in 1992 and promoted by Sabu M. Jacob, specializes in exporting cotton and organic cotton garments, particularly infant wear, to markets in the US and Europe. The company ranks as the world’s second-largest manufacturer of ready-to-wear cotton and organic cotton garments for infants and children aged 0-24 months. The company has announced that its net profit nearly tripled in the September quarter of FY25.

Financial Performance

As per the Quarterly Results in September 2024, Kitex Garments Ltd recorded a revenue of Rs 216 crore compared to Rs 134 crore representing a growth of around 61 per cent YoY. The operating profit for the period stood at Rs 55 crore with a margin of 25 per cent compared to Rs 19 crore with a margin of 14 per cent. The net profit stood at Rs 37 crore compared to a profit of Rs 13 crore representing a gain of around 184 per cent YoY. Looking at the annual performance, the company generated a revenue of Rs 617 crore in FY24, compared to Rs 557 crore in FY23. The operating profit for FY24 was Rs 101 crore, with a net profit of Rs 56 crore compared to a profit of Rs 57 crore.

Share Performance

At the start of Friday’s trading session, Kitex Garments Ltd opened at Rs 611.60 per share, compared to Rs 582.50 per share on the BSE. Finally, the company’s shares closed at around Rs 611.60 per share on the BSE and hit the upper circuit of 5 per cent. The current market capitalization stands at Rs 4,067 crore, and the stock has generated an impressive multibagger return of over 200 per cent in the past six months.

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