On Wednesday the share price of the micro-cap company rose by 14 percent to its intraday high of Rs 83.96 per share from its previous close of Rs 73.40 after the company entered a Memorandum of Understanding (MoU) with the Government of Tamilnadu.
According to GHCL Textiles Limited’s filing, the company entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu on January 8, 2024, as part of the Tamil Nadu Global Investors Meet 2024, for a four-year investment of up to Rs. 535 Crores.
Looking at the company’s financials, their net revenue decreased by 1.2 percent Quarter on Quarter, from Rs 263.28 crore in Q1FY24 to Rs 260.03 crore in Q2FY24. The net profit rose by 48 percent year over year, from Rs 4.16 crores in Q1FY24 to Rs 6.15 crores in Q2FY24.
The company has a zero debt-to-equity ratio and a book value of 0.86, indicating that it is less expensive. However, the return on equity, return on capital employed, and net profit margin remain negative.
GHCL Textiles Ltd is a micro-cap company with a market capitalization of Rs 775 Crores. The share price of the company rose by 31 percent since the company was listed in the market, on 16 June 2023.
The promoter of the company owns 19 percent, the general public owns 50.6 percent, foreign institutional investors own 21.4 percent, and domestic institutional investors own 9 percent.
GHCL Textiles Limited is a yarn manufacturer and supplier based in India. It specializes in producing premium yarns for both domestic and international markets, such as GIZA, SUPIMA, Australian, and CmiA yarns.
Written by Sriram KV
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
