Multibagger Textile Penny Stock Under Rs 100: Company Announces Expansion of Its Business Operations by Entering Garmenting Segment
The stock gave multibagger returns of 250 per cent in 2 years and a whopping 1,200 per cent in 5 years.
R&B Denims Ltd has announced a significant expansion of its business operations by entering the garmenting segment, commencing commercial production on April 10th, 2025, at its existing facility. This new venture focuses on the value-added manufacturing of denim garments, including jeans and jackets, representing a strategic forward integration from the company's established denim fabric production. This move positions R&B Denims within the broader apparel and textile industry, which is currently benefiting from increased domestic consumption, global outsourcing trends like the "China Plus One" strategy, and a rising demand for sustainable and ethically sourced garments.
This foray into garment manufacturing is expected to yield several key benefits for R&B Denims, including the vertical integration of their operations to improve profit margins by converting in-house denim fabric into finished products. The company also anticipates tapping into the growing apparel export market, attracting global brands, and potentially expanding into B2C or D2C retail segments. Furthermore, this expansion allows for the utilization of existing manufacturing infrastructure and human resources, diversifies revenue streams, and supports the company's ESG initiatives through the incorporation of sustainable garmenting practices. The initial investment in the garmenting unit is approximately ₹1.25 crores, covering machinery, skilled manpower, and infrastructure modifications, with future investments planned through a combination of internal accruals and/or debt, allowing for flexible scaling of operations based on market conditions.
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Established in 2012 through a collaboration of the RawatKhedia and Borana groups, R&B Denims Ltd is a significant textile manufacturer located in Surat, India, building upon the over three decades of experience each founding group possesses in the textile sector. The company boasts a diverse product portfolio encompassing a wide range of denim fabrics, including 100 per cent cotton, blends, and specialized options like organic cotton and power stretch, alongside specialized yarns such as cotton tencel and organic yarns and various weaves, shades and finishes; additionally, they offer high-quality carded and combed grey cotton yarns under the Rico brand.
The company has a market cap of over Rs 700 crore. On Friday, shares of R&B Denims Ltd rose 4.03 per cent to the day’s high of Rs 84.60 per cent from its previous closing of Rs 81.32 per share. The stock gave multibagger returns of 250 per cent in 2 years and a whopping 1,200 per cent in 5 years. Investors should keep an eye on this textile penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.