Shares of this smallcap company surged around 6 percent in Wednesday’s trading session after the board to consider and approve the proposal for a stock split.
Price Movemnet:
With a market capitalization of Rs. 1,149 crores, the shares of Sportking India Ltd started Wednesday’s trading session on a higher note at Rs. 895 compared to its previous close of Rs. 890.30. During the trading session, the shares hit a high of Rs. 949.20, gaining around 6 percent and closed the day at Rs. 930 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it would be considering the proposal for a stock split in its upcoming board meeting. Furthermore, the board meeting to consider and approve the stock split has been fixed on 20th July 2024.
Financials:
Looking at the company’s financial statements, the revenue increased marginally by 2 percent from Rs. 599 crores during the December quarter to Rs. 611 crores in the March quarter. On the other hand, the net profits zoomed by 64 percent from Rs. 14 crores to Rs. 23 crores during the same period. The company derived 59 percent of its revenue from exports and 41 percent from domestic operations.
Manufacturing Facilities:
Sportking India owns three state-of-the-art manufacturing facilities in India, spread across the states of Punjab and Himachal Pradesh.
These facilities are equipped with the latest machinery, producing a wide range of textile yarns and garments that are benchmarks in quality, range, and innovation. The company has an installed capacity of over 3,78,576 spindles.
Important Ratios:
The company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY23-24 with the former reported at 7.79 percent and the latter at 11.57 percent.
Customer Base:
Sportking India Limited has a strong customer base, particularly in the compact cotton yarn industry. The company has established a strong position in several export markets, including Bangladesh, China, Egypt, and the USA. Some of its Marquee customers are Zara, H&M, Ikea, Jockey, Marks & Spencer, IKEA, etc.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold 74.36 percent of the stake, the Public holds 25.53 percent of the shares, and the remaining 0.11 percent of the stakes are held by Foreign Institutional Investors (FIIs).
Company Profile:
Sportking India Limited, a part of the Sportking Group, is a textile manufacturing company engaged in the production of Yarns (Cotton Yarn, Synthetic Yarn, Blended Yarn), fabrics and garments. The company also owns over 100 retail garment stores across various Indian states.
Written By Vaibhav Patil
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