The share price of this cotton and blended yarn manufacturer locked 5 percent upper circuit after the company began production of textiles at its new manufacturing unit in Gujarat.
Jayatma Industries Ltd belongs to the penny stock category with a market capitalization of Rs 9 crore. On Friday, the stock was trading near its 52-week high price of Rs 15.70 per share.
According to an exchange filing, On 14th December 2023, Jayatma Industries commenced its production at its unit in Rajpur village in Taluka Kadi, District Mehsana, Gujarat, India.
This makes the company’s entry into the technical textiles segment and the company’s new unit will mainly cater to the domestic and International markets.
The company’s revenues have declined by 64 percent year on year from Rs 148.18 crore in FY 21-22 to Rs 53.36 crore in FY 22-23, while net profit declined by 63 percent during the same period from Rs 0.27 crore to Rs 0.10 crore.
Jayatma Industries Ltd’s shares have gained 21 percent in the last six months and 72 percent in a year.
From the cotton business, the company earned 31 percent revenue from the domestic market in FY 22-23, while 69 percent revenue from international markets.
As of the recent shareholding pattern, the company promoters hold a 44.68 percent stake, while retail investors hold a 55.32 percent stake.
Jayatma Industries Ltd is engaged in a single business segment i.e. in manufacturing and trading of cotton – Kapas, ginning cotton bales, raw oil, and its agro byproducts and yarn.
Jayatma Industries belongs to the penny stocks category with a low market capitalization and a low trading volume. So retail investors must conduct extensive research before investing in penny stocks because such penny stocks are volatile, are rarely traded, and a small number of trades may result in a circuit limit.
Written by Omkar Chitnis
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