With a market capitalization of Rs 537 crore, The shares of Axita Cotton Ltd were trading at Rs 27.29, up 0.26 percent on Thursday’s session, Recently Singapore-based FII bought a stake in the company.
According to the Livemint report, The Singapore-based foreign institutional investor Nav Capital VCC-Nav Capital Emerging Star Fund acquired 1,00,000 shares of Axita Cotton at an average price of Rs 27.18 per share aggregating to Rs 2.72 crore.
In addition, The company recently announced the purchase of 9 lakhs fully paid-up equity shares for a total of Rs. 5.04 crore. In the last year stock has gained 53.57 percent ranging from Rs 17.77 to the current price.
Axita Cotton was incorporated in 2013, It is an India-based global organic textile company engaged in the business of manufacturing, trading, processing, and finishing cotton bales.
Revenue declined by 33 percent year on year, from Rs 822 crore in FY 21-22 to Rs 552 crore in FY 22-23. In contrast, the Net Profit improved by 21 percent, from Rs 14 crore to Rs 17 crore. The profitability ratio for FY23 is 32.52 percent ROE and 39.68 percent ROCE. The operational margin rose to 4.19 percent, while the net profit margin to 3.08 percent.
As per the shareholding pattern, promoters of the company hold a 69.65 percent stake, and Foreign Institutional Investors (FIIs) have a 12.45 percent stake in the company for FY 22-23.
The company is categorized as a penny stock. Individual investors should conduct a sufficient study before investing given that stocks carry a significant degree of risk for individual investors, high-return penny stocks have varying performance, are infrequently traded, and even a modest number of trades may trigger a circuit limit.
Written by Omkar C
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