Penny stock that is engaged in the business of textiles hit a 5% upper circuit in the day’s trade after it received an international order worth Rs. 171 Crores for the supply of yarn to famous fashion brands.
The shares of Akshar Spintex Limited hit a 5 percent upper circuit in the day’s trade at Rs. 7.01 and its market capitalization is Rs. 175 Crores.
Akshar Spintex Limited has received a significant international order worth Rs. 171.17 Crores for the supply of high-quality yarn to various fast fashion brands through a globally recognized client, renowned for its association with prestigious fashion labels.
This considerable order serves as a testament to the global acknowledgment of the quality, reliability, and competitiveness of Akshar Spintex Limited’s products in the international textile market.
Securing international orders strengthens its market presence, positioning it as a preferred supplier on the global stage, and its revenue growth is poised for a substantial boost, further reinforcing its financial stability.
The company’s revenue declined 21.25 percent from Rs. 172.11 Crores in FY22 to Rs. 135.53 Crores in FY23, accompanied by a profit of Rs. 7.02 Crore to a loss of 2.76 Crore.
It has reported a return on equity (ROE) of -6.80 percent and a return on capital employed (ROCE) of -5.03 percent. It has generated negative returns due to the increase in material costs.
Akshar Spintex Limited is engaged in the business of manufacturing and trading spun cotton yards. Its products include fibers and yarns.
Note: Due to the illiquidity in penny stocks, the stock can hit its assigned circuit levels with just a minor increase in the volume of trades. Even if the stock prices are within the usual buying range for the investors and offer enormous potential profits, penny stocks are quite dangerous for retail investors.
Written by: Bharath K.S