Shares of this micro-cap stock associated with the ‘footwear’ industry jumped around 14 percent in Wednesday’s trading session after the company posted financial results for Q2FY24, i.e., for the quarter ended September 2023.
With a market capitalization of Rs 703.01 crores, the stocks of Sreeleathers Limited started their trading session on Wednesday at Rs 272.10 and currently trades at Rs 303.10, gaining around 14 percent compared to the previous closing levels of Rs 266.95 apiece.
Such sharp bullish movements in the stock prices were observed after the company, through a regulatory filing with the exchange, announced the financial results for the September 2023 quarter.
On a sequential basis, the company reported an increase in the prime business indicators such as operating revenues and after-tax profits.
The former increased from Rs 49.62 crores during Q1FY23-24 to Rs 60.28 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, shifted up from Rs 6.47 crores to Rs 8.72 crores representing an increase of approximately 35 percent.
Moreover, the company, yearly too, reported positive movements in the metrics mentioned above with the operating revenues moving up from Rs 59.11 crores during Q2FY22-23 to Rs 60.28 crores during Q2FY23-24, and, the after-tax profits increasing from Rs 6.88 crores to Rs 8.72 crores.
During the recent financial years, the company’s basic profitability ratios such as the return on equity (RoE) as well as return on capital employed (RoCE) with the former increasing from 5.08 percent during FY21-22 to 7.23 percent during FY22-23, and, the latter, during the same period, moving up from 7.06 percent to 9.89 percent.
According to the shareholding pattern data available for the September 2023 quarter, the company’s Promoters hold a 75 percent stake, and the Foreign Institutional Investors (FIIs), continuously increasing their stake, currently holds a 6.14 percent stake in the company.
Sreeleathers Limited is an India-based company operating in the ‘Footwear’ industry. The company engages in the business of dealing with various kinds of footwear and leather accessories. The product portfolio includes canvas, sandals, shoes, and many more.
Written by Amit Madnani
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