Shares of this textile stock skyrocketed more than 17 percent on Friday, after it announced entering into a manufacturing agreement with Adidas India Marketing Private Limited as a T-1 supplier.
Price Movement
In Friday’s trading session, Active Clothing Company Ltd’s share price reached an intra-day high of Rs.113.00 per share, rising 17.4 percent from its previous close of Rs.96.30 apiece. The share price has adjusted since then and is currently trading at Rs.106.98 apiece.
What happened
Active Clothing Co. Ltd has recently announced a significant expansion of its customer base by entering into a manufacturing agreement with Adidas India Marketing Private Limited, positioning itself as a Tier-1 supplier.
This partnership marks a pivotal step for Active Clothing, which has been actively engaged in the apparel manufacturing sector and aims to bolster its presence in the competitive sportswear market.
The collaboration with Adidas is particularly strategic for Active Clothing as it aligns with Adidas’ ongoing efforts to increase its footprint in India. Adidas has been investing heavily in the Indian market, recognizing the country’s potential due to its growing consumer base and increasing engagement in sports and fitness activities.
Reputed Clientele
The company has established relationships with several renowned brands, including Levi’s, Jack and Jones, Only, Vera Moda, Celio, United Colors of Benetton, Peter England, Pepe Jeans, Wrangler, Lee, Vero Moda, Arrow, Ed Hardy, Mango, Aeropostale, and Flying Machine.
Post-COVID, it expanded into the kids’ segment by partnering with international brands such as Walmart (UK), Marks and Spencer, and NEXT. Additionally, the company has commenced manufacturing shoe uppers for well-known brands like Adidas, Skechers, and Reebok.
Shareholding Pattern
As of June 2024, the shareholding pattern of Active Clothing showed that promoters held a 73.58 percent stake in the company, while public investors accounted for 26.40 percent, and foreign institutional investors (FII) held 0.02 percent.
Financial Overview
In its latest financial update, the company reported remarkable net sales of Rs.46.43 crore for Q1 FY25, reflecting a 4 percent increase from Rs.44.65 crore in Q1 FY24. Moreover, net profits surged by 64 percent to Rs.1.21 crore in Q1 FY25, compared to Rs.0.74 crore in Q1 FY24, highlighting significant growth during this period.
About the company
Active Clothing Co. Ltd, established with a focus on distributing ready-made garments, has evolved over the years to include manufacturing and retail operations. The company serves over 200 retailers primarily in Northern India, including states like Punjab and Himachal Pradesh.
It has diversified its offerings by establishing a proprietary brand, “AAGAIN,” alongside its manufacturing for notable brands in India
Written by – Siddesh S Raskar
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