On Wednesday, the micro-cap stock hit its upper circuit of 2 percent to Rs 30.31 from its previous close of Rs 29.72 after the company announced the acquisition and entering into manufacturing products from recycled waste plastic.
According to the filling of Himachal Fibres Ltd, the company entering into manufacturing of Sustainable and innovative products to be made from 100 percent recycled waste plastic packaging material.
Additionally, the company planning to acquire 51 percent of the stake in Shiva Cottex Private Limited to be engaged in the Recycled PET (rPET) bottle-to-bottle chips business & manufacturing of acoustic panels from rPET.
The Shiva Cottex Private Limited is in the process of setting up an rPET bottle-to-bottle chips production line with an annual capacity of 7,000 tonnes and a manufacturing facility of acoustic panels to be made from rPET with an annual capacity of 7,50,000 square meters.
Also, the company has stated that they have recently appointed Mr. Akhil Malhotra as Chairman of the company who has vast relevant industry experience in recycling waste plastic packaging material.
According to the Himachal Fibres Ltd report, the net revenue decreased by 66 percent year over year, from Rs 6 crore in Q2FY23 to Rs 2 crore in Q2FY24.
However, the company’s net profit increased by 1,625 percent year over year, from a net profit of Rs 0.08 crores in Q2FY23 to a net loss of Rs 1.22 crores in Q2FY24.
The company has a low debt-to-equity ratio of 0.30 and also improved its net profit margin from negative to positive at 11 percent.
Himachal Fibres Limited’s promoter holds 54.5 percent of the stake, the general public 45.29 percent, and the domestic institutional investor 0.17 percent.
Himachal Fibres Limited is an Indian manufacturer of yarns of various types. The Company is in the business of producing and selling cotton polyester yarn and knitted clothing.
Written by Sriram KV
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