Shares of this small-cap stock jumped up to 15 percent in Monday’s trading session after announcing financial results for Q1FY23-24. The scrip has gained nearly 70 percent in the past six months from Rs 64.35 to the current price level.
The stocks of Welspun India Limited traded in the green and closed at Rs 109.65 on Monday surging in price during the last hour of trading. The scrip witnessed an intra-day high of Rs 115, also marking the company’s fresh 52-week high level, indicating a gain of 15 percent as compared to the previous closing levels of Rs 100.30.
The surge was observed after the company, through a regulatory filing with the exchange, announced the financial results for the quarter ending June 2023.
The company, on a sequential basis, reported an increase in the operating revenues as well as after-tax profits with the former rising from Rs 2,154 crores during Q4FY22-23 to Rs 2,184 crores during Q1FY23-24, and, the latter moving up from Rs 129 crores to Rs 163 crores.
Comparing Q1FY22-23 with Q1FY23-24, the above-mentioned metrics showed decent growth with the operating revenues rising from Rs 1,957 crores to Rs 2,184 crores, and, after-tax profits, witnessing a drastic jump from Rs 21 crores to Rs 163 crores representing an increase of approximately 676 percent.
The company has been successful in reducing the debt-to-equity ratio with the most recent movement being from 0.80 times during FY21-22 to 0.57 times during FY22-23.
According to the latest shareholding data available for the June 2023 quarter, the Promoters hold a 70.5 percent stake, and the Foreign Institutional Investors (FIIs) hold a 6.34 percent stake in the company.
Welspun India Limited is a company based in India that is involved in making as well as selling home textiles. The company’s product portfolio includes towels, bath robes, carpets, bed sheets, area rugs, etc. The group has a presence in emerging markets such as India, China, and the Middle East.
Written by Amit Madnani
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