3:10 Rights Issue: Dheeraj Kumar Lohia’s portfolio penny stock hit 10% UC after Delivering Stellar 167% YoY Growth in 9MFY25 Net Profit
The shares of the company saw a spurt in volume by more than 5 times on BSE.
On Tuesday, shares of Fiberweb (India) Ltd hit a 10 per cent upper circuit to Rs 49.22 per share from its previous closing of Rs 44.75 per share. The stock’s 52-week high is Rs 66.24 and its 52-week low is Rs 29.99 per share. The shares of the company saw a spurt in volume by more than 5 times on BSE.
Fiberweb (India) Ltd. (NSE: FIBERWEB BSE: 507910) was established in 1985, though it started as a plastics company it ventured into garbage and carrier bags, and gradually ventured into spun bond nonwoven fabrics, the first of its kind in India. Since the commissioning of its plant in 1996, it is a 100 per cent EOU, exporting to countries like the USA, UK, Europe, UAE, South Africa & Australia. The company has an in-house facility for manufacturing stitched garments like medical & Industrial gowns and overhauls, crop covers, aprons, car covers and other made-ups as per client’s specifications. It has also set up a new product line of Melt-Blown Nonwoven fabrics used in filtration and absorption in the market. The company has become long-term debt-free and is exploring new opportunities & product segments for growth, it also has plans for expansions in its field of technical textiles. It is ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 & known as a quality producer in the International Market.
According to Quarterly Results, the net sales increased by 69 per cent to Rs 25.21 crore, EBITDA increased by 165 per cent to Rs 5.52 crore and net profit increased by 130 per cent to Rs 3.55 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 16 per cent to Rs 76.42 crore, EBITDA increased by 126 per cent to Rs 15.72 crore and net profit increased by 167 per cent to Rs 9.99 crore in 9MFY25 compared to 9MY24. In FY24, the company reported net sales of Rs 86.89 crore, EBITDA of Rs 12.37 crore and PAT of Rs 7.27 crore.
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The company plans to raise up to Rs 40 crore (approximately) through a Rights Issue of equity shares. Eligible shareholders will be offered 3 new shares for every 10 shares held on the record date, at a price to be determined later by a designated committee. The total issuance is estimated at 86,37,513 shares with a face value of Rs 10 each. The record date and rights issue price will be announced subsequently.
The company has a market cap of Rs 132 crore and its 3.55 per cent stake is owned by a re-owned investor - Dheeraj Kumar Lohia as of December 2024. The stock is up by 64 per cent from its 52-week low of Rs 29.99 per share and gave multibagger returns of 600 per cent in a decade. Investors should keep an eye on this micro-cap textile stock.
Disclaimer: The article is for informational purposes only and not investment advice.