One of the small-cap textiles stocks engaged in manufacturing and exporting polyester yarn, cotton yarn, and yarn for technical textiles. The stock is in focus after acquiring a 0.77 percent stake by Societe Generale
Stock Price Movement:
With a market capitalization of Rs. 3,112.82 crores, the shares of Sanathan Textiles Limited were trading at Rs. 369 per equity share, down nearly around 5.14 percent from its previous day’s close price of Rs. 389
What is the news?
On December 27, 2024, Societe Generale net bought a 0.77% stake in Sanathan Textiles, acquiring 695,688 shares at an average price of Rs. 401.42 per share, totaling Rs. 27.92 crore. Additionally, it sold 41,180 shares at Rs. 409.26 on the NSE, amounting to Rs. 1.68 crore. This reflects a net purchase, showing a positive stance on the stock.
Manufacturing Facilities
The company operates advanced manufacturing facilities, incorporating cutting-edge technology to ensure optimal production efficiency. These strategically located plants are designed to streamline logistics and enhance supply chain management, allowing for timely and cost-effective production and distribution of products.
Product & Capacity:
The company manufactures a wide range of yarns, including polyester yarns (2 Lac MTPA capacity), technical textiles for applications in agriculture, roads, and defense (9,000 MTPA capacity), and pure cotton yarns under the Puro Cotton brand (14,000 MTPA capacity).
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Clientele:
The company serves a diverse and prominent clientele, including industry leaders such as Arvind, AYM Syntex, Banswara, D’ Decor, Faze 3, International Conveyors, Kumar Elastics, Page Industries, Siyaram, Trident Group, and Welspun Enterprises, among others.
Recent quarter results and ratios:
Sanathan Textiles Limited’s revenue has increased from Rs. 3,329 crore in FY23 to Rs. 2,958 crore in FY24, which has down by 11.44 percent. The net profit of Sanathan Textiles Limited has also grown by 12.42 percent from Rs. 153 crore in FY23 to Rs. 134 crore in FY24.
In terms of return ratios, the company’s ROCE and ROE should be 13.5 percent and 10.9 percent, respectively. The debt-to-equity ratio of the company is to be 0.49x. Sanathan Textiles Limited’s EPS is to be Rs. 18.6.
Company Overview:
Sanathan Textiles Limited was founded in 2005 and converted into a public limited company in 2021. The company is a leading manufacturer and exporter of polyester, cotton, and blended yarns.
The company is headquartered in Silvassa, Dadra & Nagar Haveli, with a corporate office in Mumbai. The company specializes in producing yarns for various applications, including technical textiles.
Written By – Nikhil Naik
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