Gujarat-Based Textile Penny Stock Under Rs 30 Acquired 1,92,000 Shares of Quality Exim Pvt Ltd as Part of Business Expansion
The stock is up by 38.33 per cent from its 52-week low of Rs 18 per share.
Vishal Fabrics Limited has announced the acquisition of 1,92,000 equity shares of Quality Exim Private Limited (QEPL) for Rs 49,920,000, at Rs 260 per share, based on a valuation report. This transaction, dated March 19, 2025, increases Vishal Fabrics' stake in QEPL from 28.03 per cent to 37.92 per cent. QEPL, an existing associate company since March 29, 2024, operates in the textile sector, focusing on manufacturing, processing, and trading various types of yarn and fabrics. The acquisition, a related party transaction conducted at arm's length, aims to further develop and enhance QEPL's business. QEPL's turnover for the financial year ending March 31, 2024, was Rs 223.33 crore, with an authorized share capital of Rs 42,500,000.
QEPL, incorporated under the Companies Act, of 1956, has a paid-up share capital of Rs 25,417,100, consisting of equity and preference shares. The acquisition, paid for in cash, falls under the textile industry, aligning with QEPL's core business activities. The move is intended to strengthen Vishal Fabrics' involvement in QEPL, with the post-transfer holding reaching 37.92 per cent of QEPL's equity share capital. QEPL's turnover has shown consistent performance over the past three years, with figures of Rs 226.19 crore in FY 2021-22 and Rs 207.74 crore in FY 2022-23, demonstrating its established market presence.
On Wednesday, shares of Vishal Fabrics Ltd jumped 4.50 per cent to an intraday high of Rs 24.90 per share from its previous closing of Rs 23.83 per share. The stock’s 52-week high is Rs 42.88 per share and its 52-week low is Rs 18 per share.
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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 Rs 482 crore.
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 38.33 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.