The shares of the textile company gained up to 7 percent after the company’s net profit and revenue increased by 175 percent and 126 percent YoY, respectively in fourth quarter.
With a market capitalization of Rs 936.69 crore, the shares of Mafatlal Industries Limited were trading at Rs 131.00 per share, increasing around 0.08 percent as compared to the previous closing price of Rs 131.15 apiece.
Looking into the company’s performance, Mafatlal Industries Ltd’s revenue increased by 81 percent on a quarter-on-quarter basis from Rs. 420 crore in Q3FY24 to Rs. 764 crore in Q4FY24. Further, revenue increased by 126 percent year on year, from Rs. 338 crore in Q4FY23 to Rs. 764 crore in Q4FY24.
Mafatlal Industries Ltd’s net profit increased by 94 percent on a quarter-on-quarter basis, from Rs. 17 crore in Q3FY24 to Rs. 33 crore in Q4FY24. Further, net profit increased by 175 percent year on year from Rs. 12 crore in Q4FY23 to Rs.33 crore in Q4FY24.
The stock has delivered multi-bagger return of 156.86 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.56 lakh in a year.
The company’s profitability measures show an incline in return on equity (RoE) from 4.19 percent in FY 21-22 to 6.05 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 8.02 percent to 8.78 percent. In contrast, the net profit margin (NPM) was 2.70 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 69.96 percent while Retail shareholders own a 28.26 percent stake in the company and domestic Institutional Investors own a 0.94 percent stake.
Mafatlal Industries Limited manufactures textiles and trades them, as well as technology and other related products. Its product line includes clothes, school uniforms, traditional textiles, health and hygiene products, and education-focused technologies. It primarily serves the textile and allied product market, as well as the digital infrastructure industry.
Written by:- Abhishek Singh
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