The shares of this small-cap company jumped around 6 percent after announcing strong Q2 results. In six months, the share has delivered 23 percent returns to its shareholders.
With a market capitalization of Rs. 2,467 crores, the shares of Dollar Industries Ltd opened its Wednesday trading session on a higher note. The stock opened at Rs. 466.95 making a gain of around 6 percent and closed its trading at Rs. 459 apiece.
Such a positive movement was observed after the company announced June-September results. The revenue increased by 25.7 percent from Rs. 328 crores during the June quarter to Rs. 412.5 crores in the September quarter. In addition to this net profit magnified by 71 percent from Rs. 14.5 crores to Rs. 24.9 crores during the same time frame.
Comparing these metrics on a YoY basis, the revenue jumped by 21.2 percent from Rs. 340 crores during Q2 FY23 to Rs. 412.5 crores in Q2 FY24. Furthermore, the net profit zoomed by 43 percent from Rs. 17 crores to Rs. 24.9 crores during the same period.
With this, the company is planning to increase the spinning capacity from 22,000 spindles to 42,000 spindles and its Solar Power Capacity from 6 MW to 12 MW
Looking into the important financial ratios, the return on equity (RoE) declined from 24.36 percent during FY 21-22 to 7.61 percent in FY 22-23, and the return on capital employed decreased from 27.15 percent to 9.25 percent during the same time horizon.
According to the latest shareholding pattern, Promoters have a 73.09 percent stake in the company, Public or Retail Investors have 26.01 percent shares, FIIs have a stake of 0.33 percent in the company and the remaining 0.57 percent is with DIIs.
Headquartered in Kolkata, Dollar Industries Ltd was incorporated in the year 1993. The company is one of the leading brands in the hosiery sector with a 15% market share. Their textile exports stand at 9% of their total production in the Indian hosiery market.
Written By Vaibhav Patil
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