The small-cap textile stock surged over 9% after the board proposed to discuss a bonus issue and the expansion of retail outlets focused on fast fashion and ethnic wear.
Share price variations:
With a market capitalization of Rs. 2,413.69 crores, Siyaram Silk Mills Ltd. rose to an intraday high of Rs. 550.00 representing a 9.45 percent increase from its previous closing price of Rs. 502.50 per share.
Reason for Rise:
According to exchange filings, Siyaram Silk Mills Ltd.’s board has proposed to discuss the issuance of bonus securities at its meeting scheduled for October 26th.
The company has also unveiled plans to expand its retail presence by launching new fast fashion outlets under the brand name ZECODE and ethnic clothing stores under the brand DEVO. It aims to enter Tier I, II, and III cities across India, with a total of 30 new outlets set to open by March 2025, requiring an investment of approximately Rs. 50 crores.
Financial Performance:
For Q1FY24 the company reported a net profit increase of 15.11 percent to Rs. 11.5 crores compared to Rs. 9.99 crores in Q1FY24, while revenue from operations marked a decrease of 13.57 percent to Rs. 306.82 crores from Rs. 355 crores in comparison to the same period.
For the June quarter, the company’s revenue mix consists of 77 percent from fabric, 13 percent from garments, and 10 percent from yarn and other categories.
About the company:
Siyaram Silk Mills Ltd is engaged in manufacturing fabrics and readymade garments, especially in the men’s wear section. The company has manufacturing facilities across Tarapur, Daman, Amravati, and Silvassa and has 245 plus stores across the nation.
The company also exports its products, with exports contributing 9 percent of its revenues for FY24. It employs various distribution methods, including distributors, MBOs, institutions, online marketplaces, and exclusive shops. As of September Vijay Kedia holds a 1 percent stake in the company amounting to 4.55 lakhs equity shares valuing Rs. 22.84 crores.
Written By: Joseph Pv
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