During Tuesday’s trading session, the shares of a company in the business of manufacturing and trading readymade garments hit a 20 percent upper circuit at Rs. 129.97 on BSE, after the company announced signing an agreement with Puma Sports Private Limited.
With a market cap of Rs. 190 crores, at 01:57 p.m., the shares of Active Clothing Co Limited were trading in the green at Rs. 122.48, up by nearly 13 percent, compared to its previous closing price of Rs. 108.31.
What’s the news:
According to the latest filings with the BSE, Active Clothing Co Limited signed a manufacturing agreement with Puma Sports Private Limited to serve as a T-1 supplier.
This agreement aligns with Active Clothing’s strategy to broaden its customer base by collaborating with multinational companies.
Previous News:
On 10th October, Active Clothing Co. Ltd announced a significant expansion of its customer base by entering into a manufacturing agreement with Adidas India Marketing Private Limited, positioning itself as a Tier-1 supplier.
This partnership represents a crucial milestone for Active Clothing, which has been actively involved in the apparel manufacturing industry and seeks to enhance its presence in the competitive sportswear sector.
The collaboration with Adidas is especially strategic for Active Clothing, as it aligns with Adidas’ ongoing initiatives to expand its market share in India.
The company has been making substantial investments in the Indian market, recognizing the country’s potential due to its growing consumer base and increased participation in sports and fitness activities.
Financials:
The company experienced a marginal growth in its revenue from operations, showing a year-on-year rise of around 4 percent from Rs. 44.7 crore in Q1 FY24 to Rs. 46.4 crore in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 0.74 crore to Rs. 1.2 crore, indicating a rise of nearly 62.2 percent YoY.
Stock Performance:
The stock has delivered positive returns of nearly 71.4 percent of returns in one year, as well as around 18 percent returns in the last six months. However, so far in 2024, the shares of Active Clothing have given negative returns of about 2 percent
About the company:
Incorporated in 2002, Active Clothing Co. Limited is engaged in the business of manufacturing and trading of apparels.
The company is an integrated apparel manufacturer and designer of flat-knit sweaters, outerwear jackets and circular knit t-shirts, sweatshirts & joggers, among which are, apparels for men, women, kids and babywear with a total capacity that reaches 12 lakh, 2.5 lakh and 10 lakh pieces respectively, per annum.
Active Clothing has diversified its offerings by establishing a proprietary brand, “AAGAIN,” alongside its manufacturing for notable brands in India.
Written by Shivani Singh
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