The shares of one of the largest fabric manufacturers surged by 5% to ₹82.29 per share after its shareholders approved the sale of the fabric distribution division valued at ₹5.91 crores.
On Thursday’s early trade, Kamadgiri Fashion Ltd shares hit a 5% upper circuit to ₹82.29 per share on the Bombay Stock Exchange. The company has a market capitalization of ₹48.30 crores.
What News:
The shareholders of Kamadgiri Fashion Ltd approved the sale of Kamadgiri Fashion Ltd’s fabric distribution division and Made-To-Measure business to Tritoma Fashion Lab Private Limited through a Business Transfer Agreement. The transaction, valued at Rs. 5.91 crores, was sanctioned via a Postal Ballot on May 28, 2024.
Tritoma Fashion Lab Private Limited, incorporated on August 8, 2007, operates in the textile industry and reported a turnover of Rs. 0.11 crores for the fiscal year 2022-23
About the company:
Established in 1987, Kamadgiri Fashion Limited specializes in the production of fabrics and ready-made apparel through both in-house and outsourced manufacturing processes.
Kamadgiri Fashion Ltd produces fabrics in-house and manufactures ready-to-wear garments, such as formal shirts, casual shirts, and bottom wear, through contract manufacturing for well-known brands. The company also provides tailored uniform services.
The company operates four manufacturing facilities: two weaving units in Umbergaon (Gujarat), one garment unit in Tarapur (Maharashtra), and another in Sanjan (Gujarat).
Kamadgiri Fashion has a strategic partnership with Future Group to supply 2 million garments for various brands, including John Miller, Bare, Lee Cooper, RIG, Knighthood, DJ&C, F Factor, Annabelle, and UMM.
Financials:
In Q4FY24, Kamadgiri Fashion saw a 21% year-on-year revenue decline, dropping from ₹69.67 crore to ₹55.12 crore. Concurrently, its net profit decreased by 15%, falling from ₹2.71 crore to ₹2.30 crore.
For FY24, Kamadgiri Fashion recorded a gross profit margin of 4.70% and an operating margin of 2.60%. The company’s shares have appreciated by 5.5% in the last month and by 3% over the past year. As of the March quarter, the promoter holds a 34.01% stake in the company, while retail investors own 65.98%.
Written by Omkar Chitnis
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