The shares of this textile industry jumped around 4 percent after receiving new sales orders from multiple domestic vendors in the industry worth Rs. 89.22 crores for delivering cotton bales over a period.
With a market capitalization of Rs. 577 crores, the shares of Axita Cotton Ltd started Thursday’s trading session positively at Rs. 29.65 compared to its previous close at Rs. 28.45. The share hit a high of Rs. 29.80 making a gain of around 4 percent and currently trading at Rs. 29.50 apiece.
Such a bullish movement was observed after the company in an exchange filing mentioned that it received multiple new sales orders from multiple vendors in the industry worth Rs. 89.22 crores for delivering cotton bales over a period.
The company received an order from A B and Co. for the supply of cotton bales worth Rs. 26.60 crores. In addition, it received an order from HSC Commodities Private Limited worth Rs.18.72 crores to provide the same. Furthermore, it received another order from P D Commodities worth Rs. 21.77 crores and one more order from Shree Shiddhnath Cottex Private Limited worth Rs. 22.13 crores to deliver the same product.
Looking at the financials of the company, the revenue magnified by 70 percent from Rs. 227 crores during Q1 FY24 to Rs. 388 crores. 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 was recorded at 6.51 percent.
According to the latest shareholding pattern, the Promoters have a 69.97 percent stake in the company, the Public has a 24.71 percent holding and the remaining 5.32 percent is with FIIs.
Headquartered in Gujarat, Aixta 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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