This Microcap stock deals in the business of trades and manufactures technical textiles, knitted and coated fabrics hit 5 percent in intraday trade after the company received an order from Safari Industries for bag production.
Price Action
With a market capitalization of Rs.464 Crores, the shares of Shree Karni Fabcom Limited were up by 5 percent in the day’s trade touching a day’s high of Rs. 656.30 per share. The stock reiterated from the day’s high and was trading at Rs. 643.8 per share which is 3 percent higher than the previous closing price of Rs. 625.05 apiece.
What Happened
The stocks of Shree Karni Fabcom rose after the company received an order from Safari Industries (India) to produce 20,000 units of Omega 19 Fb Black Bag. While Shree Karni was a long-trusted supplier of Fabrics to Safari Industries for their bag production, this is the first instance where they will be delivering fully finished bags instead of supplying just the fabric. This move is significant for the company to diversify its business.
About the Company
Shree Karni Fabcom Limited was established in 2018. They specialize in manufacturing customized knitted and woven fabrics for diverse industries which include luggage, medical, and apparel. They produce various technical textiles such as coated fabrics and 100% polyester.
With advanced automated manufacturing facilities, they have significant production capacities for weaving, knitting, and coating. Shree Karni operates on a B2B model, focusing on quality and innovation to meet specific customer needs and improve its market presence and operational efficiency. The company is ISO certified, underscoring
its commitment to quality management.
Financials & Ratios
Its Revenue from operations increased by 26 percent year on year from Rs. 61 Crore in H1FY24 to Rs. 77 Crore in H1FY25, accompanied by profits of Rs. 2 Crore to Rs. 5 Crore.
In terms of Return ratios, it has reported a return on equity (ROE) of 30.68 percent and a
return on capital employed (ROCE) of 21.17 percent. It has a net profit margin of 11.34 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 70.70 percent in Shree Karni Fabcom, Foreign Institutional Investors (FII) holding around 0.07 percent, and public holdings standing at 29.23 percent.
Written by Santhosh S
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