The share of the textile company jumped 3 percent after the board to consider bonus, interim dividend, and buyback of equity shares.
With a market capitalization of Rs. 180 crores, the shares of Akshar Spintex Ltd started Tuesday’s trading session flat at Rs. 7.15. The share hit a high of Rs. 7.50 making a gain of around 3 percent and closed it day at Rs. 7.30 apiece.
Such positive movement was observed after the company in an exchange filing mentioned that the board meeting is scheduled on 15th December 2023, to consider and approve bonus issuance, interim dividend, and buyback of equity shares.
Looking at the company’s financial statement, the revenue increased 13 percent from Rs. 38.35 crores during the June quarter to Rs. 43.57 crore in the September quarter. On a contrasting note, the net profit remained constant at Rs. 90 lakhs during both the quarter.
Coming onto the important financial ratios, the return on equity (RoE) was at -6.58 percent during FY22-23 and the return on capital employed (RoCE) was recorded at -3.66 percent during the same timeframe. Due to increasing expenses, the company is not able to maintain its profitability.
According to the latest shareholding pattern, the Promoters have a 43.75 percent stake in the company and the remaining 56.26 percent shares are with the Retail Investors.
Headquartered in Gujarat, Akshar Spintex Limited is engaged in the business of manufacturing and trading spun cotton yards. The company has a total of 24,480 spindles with annual production of 7500 MT in cotton yarn. Its products include fibers and yarns.
Written by Vaibhav Patil
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