The shares of this textile industry jumped around 3 percent after the board recommended the issuance of bonus equity shares in the ratio of 1:3.
With a market capitalization of Rs. 557 crores, the shares of Axita Cotton Ltd started Friday’s trading session positively at Rs. 30.05 compared to its previous close at Rs. 29.25. The share hit a high of Rs. 30.25 making a gain of around 3 percent and currently trading at Rs. 29.25 apiece.
Such a positive movement was observed after the board recommended the issuance of bonus equity shares. The company’s board approved and recommended the issue of bonus equity shares in the ratio of 1:3, i.e.,1 bonus equity share of Rs. 1 for every 3 fully paid-up equity shares of Rs. 1 each held to the shareholders as on the record date as may be decided by the Board of Directors after approval of Shareholders.
Looking at the financials of the company, the revenue magnified by 70 percent from Rs. 227 crores during Q1 FY24 to Rs. 388 crores during Q2 FY24. Moreover, the net profit increased by 13 percent from Rs. 5.75 crores to Rs. 6.51 crores during the same timeframe.
Coming onto the important financial ratios, the return on equity (RoE) was at 38.44 percent in FY 22-23, and keeping the timeframe same, the return on capital employed (RoCE) was recorded at 6.51 percent.
According to the latest shareholding pattern, the Promoters have a 69.97 percent stake in the company, FIIs have 5.32 percent shares and the remaining 24.71 percent are with the Retail Investors.
Headquartered in Gujarat, Axita Cotton Ltd was incorporated in 2013. The company is engaged in the manufacturing, processing, finishing, and trading of cotton bales, cotton yarns, and cotton seeds in India. The company also engages in the ginning and pressing of seed cotton on a work basis.
Written By Vaibhav Patil
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