The shares of Filatex Fashions Ltd were trading higher by more than 3 per cent at Rs 24.50 levels on Tuesday afternoon. The shares rallied after the company announced that it is planning a capacity expansion worth Rs 300 Crore.
As per the plan, the company will be adding another 500 machines to meet the growing demand for the company’s existing products. This expansion is estimated to require around 400,000 square feet of space. The expansion is set to be completed in the next one and a half years. The management expects the move to generate an additional turnover of around Rs 400 crore and provide employment to more than 1,000 workers.
Filatex Fashions Ltd. is one of India’s oldest players in socks manufacturing. It specializes in quality cotton, woollen, and silk socks. The company has two brands Smartman and Tuscany. The clientele of the company includes Marks & Spencer, Adidas, Sergio Tacchini, and Walt Disney among others.
In August this year, the stock was trading at Rs 6.95 a piece on BSE. From there, it has spiked up to the current levels logging a multibagger return of 253 per cent in just 3 months. In the span of a month, the stock has zoomed by more than 56 per cent. On a yearly basis, the stock has delivered a multibagger return of 505 per cent as the share price has risen from Rs 4 in November 2021 to the current levels.
The financials of the company have significantly improved after they reported a total revenue of Rs 43.62 crore in Q2FY23 which was a multifold increase from Rs 7.77 crore Year on Year (YoY). In the quarter under review, their net profit stood at Rs 4.57 crore as against a loss of Rs 4.32 crore in Q2FY22.
It must be noted that the company has an extremely low promoter holding which stands at Rs 1.57 per cent as per the latest shareholding pattern of the company. Foreign Institutional Investors (FIIs) have increased their stake in the company this quarter and now holds 0.72 per cent.
Written by Anoushka Roy
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