57 per cent from its 52-week low of Rs 14.28 in just 9 months: Heavy buying witnessed in this textile stock under Rs 25

The stock is up by 57 per cent from its 52-week low of Rs 14.28 per share in just 9 months.

Today, shares of Vishal Fabrics Ltd gained 10 per cent to an intraday high of Rs 22.45 from its previous closing of Rs 20.41 with a spurt in volume by more than 2 times on BSE. The stock’s 52-week high is Rs 26.70 and its 52-week low is Rs 14.28.

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.

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.

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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.

The company has a market cap of over Rs 400 crore. The shares of the company have a PE of 20x, an ROE of 15 per cent and an ROCE of 15 per cent. The stock is up by 57 per cent from its 52-week low of Rs 14.28 per share in just 9 months. Investors should keep an eye on this micro-cap stock.  

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