Shares of this microcap leather manufacturer gained 1.89 percent and hit upper circuit after the company announced a JV with a UK based shoe company.
At 10:57, 18th october shares of Aki India Ltd were trading at Rs. 16.20 per share up by 1.89 percent from previous closing price of Rs. 15.9 per share. The company has a market capitalization of Rs. 107.49 crores.
The reason for this bullish stock price movement is the company announced through a regulatory filing on Bombay stock exchange (BSE) on 17th October that they have entered into Joint venture agreement with a UK based footwear company NPS Shoes Limited.
The newly formed entity will be setting up a manufacturing plant to manufacture/deal and export leather shoes in India and other countries.
Looking at the financial statements, the company’s revenue increased by 11.3 percent to Rs. 13.19 crores in Q1FY24 from Rs. 11.85 crores in Q1FY23 moreover, net profit went to Rs. 0.31 crores from a loss of 0.26 crores in the same time period.
Having a look at profitability ratios, the company reported return on equity (ROE) of 12.24 percent and return on capital employed (ROCE) of 7.45 percent in the last financial year.
incorporated in the year 1994 Aki India Ltd is engaged in the business of manufacturing and exports of various leather products like Leather Footwear, Leather Bags, Belts and Finished Leather, horse covers etc.
Written by: Vinit Israni
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