Jaimin Gupta acquires majority stake in Gujarat-based Aarvee Denims and Exports
The stock has given multibagger returns of 201 per cent returns in the last one year.
Jaimin Gupta, the founder of men's fashion brand Barcelona, along with other investors have acquired a majority stake in Gujarat-based Aarvee Denims and Exports.
Last week, Aarvee said it has approved the execution of the share purchase agreement for selling 1.42 crore shares to Jaimin Gupta along with Tarachand Agrawal and Qmin Industries The deal also triggered an obligation on the acquirers to make an open offer to acquire up to 26 per cent of the company's equity at Rs 41 per share to the public shareholders of the company to acquire the additional stake.
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Incorporated in 1988, Aarvee Denims and Exports Ltd manufactures and sells denim and non denim Fabrics. Company has composite integrated manufacturing facilities for production of a wide range of Denim Fabrics. Company has in-house yarn manufacturing facilities for denim used for captive consumption. It also sources yarn from local markets for a variety of denim products and sells surplus yarn in local market
In the Quarterly Results of September 2024, the company reported a revenue of Rs 15.48 crore, which shows a decline of 37.61 per cent compared to Rs 24.81 crore in September 2023 but a growth of 14.41 per cent compared to Rs 13.53 crore in June 2024. The net profit for September 2024 stood at Rs 8.27 crore, marking a decline of 163.76 per cent year-on-year compared to a profit of Rs 22.58 crore and a drop of 63.37 per cent quarter-on-quarter from Rs 22.58 crore. The net profit margin for the quarter was 53.42 per cent, significantly lower than 166.89 per cent in June 2024 and contrasting sharply with -52.28 per cent in September 2023.
For the financial year 2024, the company recorded a total revenue of Rs 84.73 crore, a decrease of 67.52 per cent from Rs 260.90 crore in FY23. The net profit for FY24 was Rs 17.79 crore, showing an improvement compared to a loss of Rs 48.54 crore in FY23, resulting in a growth of 32.56 per cent. The net profit margin for FY24 was -57.29 per cent, which widened from -27.59 per cent in the previous year.
The shares of the company are trading at Rs 72.54 with a market cap of Rs 170 crore. The stock has given multibagger 201 per cent returns in the last one year.
Investors should keep this micro-cap stock on the radar.
Disclaimer: The article is for informational purposes only and not investment advice.