Axita Cotton Ltd, through a recent exchange filing, announced that the Company has received a contract/award from Taraspinning Mills Limited and Khadiza Sadek Spinning Mills Limited which are based in Bangladesh for Indian Raw Cotton with the order value aggregating to USD 2,716,091.84 approximately. The timeframe within which the company has to execute the order is decided to be 30th April 2023.
In the past 2 years, the Company has had a history of receiving orders aggregating to USD 32.55 lakh for Indian Raw Cotton from Bangladesh.
Axita Cotton’s stock opened its trading session at Rs 56.95 and is currently trading at Rs 54.95. In comparison to the previous closing price of Rs 56.35, the stock showed a downfall of about 2.67 percent.
Keeping a purview of 6 months, the company witnessed good gains and was successful in providing its stakeholders with a return of around 76.5 percent ranging from Rs 31.11 to current levels. Moving one step ahead by evaluating the returns over a 1 year period, the company has provided Multibagger returns of approximately 201 percent from Rs 18.22 to the current price levels.
Axita Cotton Ltd is involved in the production of Cotton seeds and also does ginning, pressing, and trading of Kapas on a job work basis. It also produces Specialty Cotton which includes BCI Cotton, Organic Cotton, and Primark Sustainable Cotton.
The manufacturing facility of the Company is situated at Kadi in Mahesana District of Gujarat which is close to the rich cotton-growing areas of Maharashtra, Saurashtra, and other regions of Gujarat.
Going through the financials of the company, the revenues witnessed a positive shift from Rs 91.6 crores in Q2 to Rs 130.4 crores in Q3. Net profit figures, in congruence with the pattern shown above, increased from Rs 2.3 crores in Q2 to Rs 4.7 crores in Q3.
Coming on to the profitability ratios of the company, the ROE figures more than doubled from 18.7 percent in FY 20-21 to 49.8 percent in FY 21-22. In alignment with the movement above, the ROCE figures increased from 25.7 percent in FY 20-21 to 58.7 percent in FY 21-22.
The debt to equity ratio became null in the quarter ended December 2022 as compared to 0.64 in the period ending September 2022.
Promoters of the company have reduced their stake from 72.37 percent in Q2 to 69.65 percent in Q3. FII’s, on a contrasting note, have increased their stake holdings from 10.61 percent in Q2 to 11.63 percent in Q3.
Written by Amit Madnani
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