A company that manufactures yarn and garments hit 2 percent upper circuit to an intraday high of ₹74.75 per share on the second half of Thursday’s trade after the board approved the stock split in the ratio of 1:10.
Vardhman Polytex Ltd. belongs to the micro-cap category with a market capitalization of ₹205 crore. At 12:15 p.m., the shares hit 2 percent upper circuit on the National Stock Exchange.
The company board approved the sub-division / split of the company’s equity shares in a ratio of 1:10 from the face value of ₹ 10 to ₹ 1 each. This means that for every share held by the shareholder, they will get 10 additional shares. The company reported this in its exchange filing.
Vardhman Polytex Limited, an Indian holding company, specializes in yarn and garment manufacturing. Its facilities are situated in Bathinda, Punjab, Ludhiana, Punjab (with an annual capacity of five lakh pieces) and Nalagarh, Himachal Pradesh.
The company’s yarn range spans from cotton yarns (including carded, combed, organic, and Supima) to cotton-polyester blends and value-added yarns (in both grey and dyed variants) across different counts. Vardhman Polytex utilizes machinery from various renowned manufacturers such as Rieter, Trutzschler, Kirloskar Toyota, and others.
Their dyeing capacity stands at 15 tons per day, facilitated by cutting-edge technology sourced from manufacturers like Fongs (Hong Kong), SSM (Switzerland), Monga Strayfield (UK), and Detin (Italy).
In the past month, Vardhman stocks have risen by 12%, and over the last year, stock surged by 196%. As of the latest data, the company’s promoter holds a 49.14 percent stake, while retail investors own 50.20 percent.
According to a year-on-year comparison of financials, the company’s revenue declined by 35 percent from ₹93 crores in Q3 FY23 to ₹60 crores in Q3 FY24. Within the same time period, the net profit climbed by 69 percent, from ₹16.5 crore to ₹5.3 crore.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
