Textile stock engaged in manufacture and export of white terry towels hit a 5 percent upper circuit to Rs.45.86 per share following an increase in net profits of nearly 94 percent year-on-year.
Price Movement
The share price of Ashnoor Textile Mills Ltd hit a 5 percent upper circuit to Rs.45.86 per share on Tuesday’s trading session from its previous close of Rs.43.68 apiece. The share has generated returns of over 200 percent in five years.
Financial Performance
For the quarter ending June 2024, Ashnoor Textile Mills Ltd reported consolidated revenue of Rs.49.71 crores, reflecting a substantial 56.4 percent rise from Rs.31.78 crores in the same period last year. On a quarterly basis, revenue grew by 40.1 percent from Rs.35.48 crores in Q4 FY24.
The company’s Profit After Tax (PAT) saw a dramatic 93.75 percent year-over-year increase, reaching Rs.4.65 crores in Q1 FY25 compared to Rs.2.4 crores in June 2023. PAT also improved by 89.8 percent from Rs.2.45 crores in Q4 FY24.
The surge in Ashnoor Textile Mills’ stock price was driven by its robust financial results, marked by notable increases in both net profits and operational revenue.
Key financial metrics highlight Ashnoor Textile Mills’ strong performance further. The Price to Earnings (P/E) ratio stands at 9.37, significantly lower than the industry average of 19.24, and the Price/Earnings to Growth (PEG) ratio is 0.66.
In terms of return ratios, the Return on Capital Employed (ROCE) is 9.97 percent, and the Return on Equity (ROE) is 8.45 percent.
Business Segments
Ashnoor Textile Mills Ltd is a diversified textile company with a revenue mix spanning various product segments and geographical markets. The company’s business segments include cotton yarn, synthetic yarn, fabric production, home textiles, and apparel manufacturing.
Geographic Presence
Ashnoor Textile Mills Ltd has a strong presence in both domestic and international markets, with exports to regions such as North America, Europe, Asia-Pacific, and the Middle East.
Shareholding Composition
As per the June 2024 shareholding pattern, the promoters of Ashnoor Textile Mills Ltd hold a 71.51 percent stake, while Retail investors hold 28.48 percent stake.
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About the company
Ashnoor Textile Mills Limited is an India-based manufacturer and exporter of terry towels. The Company is engaged in the manufacture and export of white terry towels of various sizes. Its principal product is a terry towel.
Written by – Siddesh S Raskar
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