Textile stock engaged in manufacturing and exporting white terry towels hit a 5 percent upper circuit to Rs.49.62 per share following an increase in net profits of over 342 percent year-on-year and significant revenue growth as well.
Price Movement
The share price of Ashnoor Textile Mills Ltd hit a 5 percent upper circuit to Rs.49.62 per share on Thursday’s trading session from its previous close of Rs.43.68 apiece. The share has generated returns of over 280 percent in five years.
Financial Performance
The surge in Ashnoor Textile Mills’ stock price was driven by its robust financial results, marked by notable increases in both net profits and operational revenue.
For the quarter ending September 2024, Ashnoor Textile Mills Ltd reported consolidated revenue of Rs.44.49 crores, reflecting a substantial 44 percent rise from Rs.30.97 crores in Q2 FY24. Quarterly, revenue grew fell 11 percent from Rs.49.71 crores in Q1 FY25.
The company’s Profit After Tax (PAT) saw an exceptional 342 percent year-over-year increase, reaching Rs.6.81 crores in Q2 FY25 compared to Rs.1.54 crores in Q2 FY24. PAT also improved by 46 percent from Rs.4.65 crores in Q1 FY25.
Key financial metrics highlight Ashnoor Textile Mills’ strong performance further. The Price to Earnings (P/E) ratio stands at 5.31, significantly lower than the industry average of 26.7.
In terms of return ratios, the Return on Capital Employed (ROCE) is 6.29 percent, and the Return on Equity (ROE) is 3.43 percent.
Business Segments
Ashnoor Textile Mills Ltd is a diversified textile company with a revenue mix spanning various product segments and geographical markets. The company’s business segments include cotton yarn, synthetic yarn, fabric production, home textiles, and apparel manufacturing.
Geographic Presence
Ashnoor Textile Mills Ltd has a strong presence in both domestic and international markets, with exports to regions such as North America, Europe, Asia-Pacific, and the Middle East.
Shareholding Composition
As of the September 2024 shareholding pattern, promoters hold a 71.51 percent stake in Ashnoor Textile Mills Ltd, while retail investors own 28.35 percent and domestic institutional investors hold a minimal 0.13 percent stake.
About the company
Ashnoor Textile Mills Limited is an India-based manufacturer and exporter of terry towels. The Company is engaged in the manufacture and export of white terry towels of various sizes. Its principal product is a terry towel.
Written by – Siddesh S Raskar
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