Share of this textile company clocked 10 percent upper circuit in Monday’s trading session after reporting an increase in net profit by 304 percent YoY. In just 5 trading sessions, the shares have delivered around 48 percent return to its investors.
With a market capitalisation of Rs. 89 crores, the shares of Garment Mantra Lifestyle Ltd started Monday’s trading session on a higher note at Rs. 8.65 compared to its previous close of Rs. 8.07. During the trading session, the shares clocked a 10 percent upper circuit at Rs. 8.87 apiece, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company announced their October to December results. Looking at the consolidated financial statement, the revenue increased marginally by around 1 percent from Rs. 33.10 crores during the September quarter to Rs. 33.36 crores in the December quarter. In addition, the net profits zoomed by 244 percent from Rs. 41 lakhs to Rs. 1.41 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by around 16 percent from Rs. 28.16 crores during Q3FY23 to Rs. 33.36 crores in Q3FY24. On the other hand, the net profits magnified by 304 percent from Rs. 34.88 lakhs to Rs. 1.41 crores during the same timeframe.
Previously, the textile company received a huge export order of Rs. 141.90 million (14.19 crores) for its products to be supplied in the next 3 quarters. In the business history of the company, it is the first instance that they have received this kind of order from the export market.
Looking at the important financial ratios, the return on equity decreased from 1.44 percent during FY21-22 to 1.21 percent in FY22-23 and the return on capital employed decreased from 9.85 percent to 7.70 percent during the same time horizon.
According to the latest shareholding pattern, the Promoters have a 50.01 percent stake in the company and the remaining 49.91 per cent shares are with Retail Investors.
Headquartered in Tiruppur, Garment Mantra Lifestyle was incorporated in 2011. Garment Mantra Ltd is in the business of manufacturing, selling and distributing fabrics, and hosiery garments, and providing related services.
Written By Vaibhav Patil
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