Share price of a company engaged in the textile business segment and textile chemicals surged 19.3 percent on BSE to hit an intraday high at Rs. 164.7, after entering into an agreement with the Defence Research Laboratory (DRL), DRDO and Ministry of Defence.
With a market capitalisation of Rs. 1,158.7 crore, the shares of Mafatlal Industries Limited moved up by 16.1 percent and closed in the green at Rs. 160.25, as against its previous closing price of Rs. 138.
According to the June 10th regulatory filings, Mafatlal Industries entered into a Technology Transfer Agreement (ToT) with the Defence Research Laboratory (DRL), Defence Research and Development Organisation (DRDO) and the Ministry of Defence.
Under this agreement, the company will manufacture and sale of Anti-Microbial Bed Sheets to the Indian Armed Forces or other Government Agencies.
This collaboration will support Mafatlal Industries to expand its product range and increase market existence, particularly in serving the defence sector with advanced, high-quality products.
In terms of financials, the company’s revenue from operations grew by 125.8 percent YoY from Rs. 338.42 crore in Q4 FY22-23 to Rs. 764.3 crore in Q4 FY23-24, while the after-tax profit increased by 182.2 percent from Rs. 11.8 crore in Q4 FY22-23 to Rs. 33.3 crore in Q4 FY23-24.
The successful execution of new institutional orders is largely responsible for the notable growth in revenue from operations; as of May 2024, the company’s running order book was close to Rs. 400 crore.
On a year-on-year basis, the operating Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 9.1 crore in Q4 FY22-23 to Rs. 18 crore in Q4 FY23-24, representing a growth of 97.8 percent.
The return on equity (ROE) stood at 12.12 percent in FY23-24, up from 6.05 percent in FY22-23, as well as a rise in the Return on Capital Employed (ROCE) from 8.78 percent in FY22-23 to 10.92 percent in FY23-24.
As per the shareholding pattern of March 2024, the Promoters hold a 69.96 percent stake in the company, FIIs hold a 0.85 percent stake, while Retail Investors and DIIs hold a 28.26 percent and 0.93 percent stake in Mafatlal Industries, respectively.
The stock has delivered multibagger returns of nearly 181.5 percent in the last one year and around 14 percent of positive returns year-to-date.
Mafatlal Industries Limited belongs to the reputed industrial house of Arvind Mafatlal Group in India and is engaged in textile manufacturing and trading of textile, technology and related products.
Written by Shivani Singh
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.
