Shares of a micro-cap textile company rose 3 percent after it reported a sharp 1,945 percent jump in net profit on a quarter-on-quarter basis. The strong bottom-line performance was supported by steady revenue growth during the period, reflecting improved demand and operational efficiency. The upbeat results have boosted investor sentiment, leading to gains in the stock.
During Friday’s trading session, the shares of Raghuvir Synthetics Ltd reached an intraday high of Rs.129.90 per share, rising 2 percent from the previous close of Rs.125.50 per share. The shares have later retreated from the peak, and are currently trading at Rs.126.00 per share. Over the past five years, the shares delivered over 720 percent returns.
Financial Performance
Raghuvir Synthetics Ltd experienced a significant rise fueled by strong net profit and revenue growth, as reflected in its latest financial results. In Q4 FY25, the company reported revenue of Rs.90.80 crore, marking a 40.69 percent year-on-year growth compared to Rs.64.54 crore in Q4 FY24. On a sequential basis, revenue increased 7.65 percent from Rs.84.35 crore in Q3 FY25, indicating sustained operational momentum.
Net profit for Q4 FY25 stood at Rs.4.09 crore, a 17.87 percent increase from Rs.3.47 crore in the same quarter last year. Sequentially, net profit surged 1,945 percent from Rs.0.20 crore in Q3 FY25.
For the full year FY25, the company recorded a total revenue of Rs.336.70 crore, reflecting a 37.84 percent rise from Rs.244.26 crore in FY24. Despite the sharp increase in revenue, annual net profit almost doubled, rising 93.12 percent to Rs.8.98 crore from Rs.4.65 crore in the previous year.
Raghuvir Synthetics operates state-of-the-art textile processing facilities, equipped with a comprehensive range of advanced machinery, including singeing, mercerisation, sanforisation, calendaring, stentering, jigger bleaching and dyeing, Kuster padding, continuous bleaching range (CBR), pad dry & pad steam, raising, peach finishing, and high-end multi-color printing (up to 16 colors).
The company specializes in processing a wide array of textile products with a strong emphasis on quality, innovation, and precision. It caters to a diverse client base, including domestic garment and home textile exporters, as well as international customers across various markets.
The company has a Return on Capital Employed (ROCE) of 17.88 percent and a Return on Equity (ROE) of 30.66 percent. Its Price-to-Earnings (P/E) ratio stands at 57.83, higher than the industry average of 15.98. Furthermore, the company maintains a current ratio of 0.99, a debt-to-equity ratio of 1.3, and an Earnings Per Share (EPS) of Rs.2.17.
Written by – Siddesh S Raskar
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