Shares of this small-cap stock associated with the garments & apparel industry gained around 8 percent in Wednesday’s trading session after the company posted results for the quarter ended September 2023. In the last six months, the company’s stock has gained over 75 percent.
With a market capitalization of Rs 4,810.46 crores, the stocks of Kewal Kiran Clothing Limited started their trading session on Wednesday at Rs 761.30 and currently trades at Rs 780.60, gaining approximately 8 percent as compared to the previous close of Rs 724.30 apiece.
Such sharp movements in the stock prices were observed after the company, in a recent filing with the Bombay Stock Exchange (BSE), announced its financial results for the quarter ended September 2023.
On a sequential basis, the company reported an increase in the prime indicators of business such as the operating revenues as well as after-tax profits.
The operating revenues rose from Rs 178 crores during Q1FY23-24 to Rs 262 crores during Q2FY23-24, and, the after-tax profit figures moved up from Rs 34 crores to Rs 50 crores representing an increase of around 47 percent.
In addition, the company, on a YoY basis as well, reported decent growth with the operating revenues increasing from Rs 226 crores during Q2FY22-23 to Rs 262 crores during Q2FY23-24, and, the after-tax profits going up from Rs 39 crores to Rs 50 crores keeping the timeframe the same.
Having a glance at the historical profitability ratios of the company, the return on equity (RoE) as well as the return on capital employed (RoCE) have shown positive movements with the former shifting up from 17.92 percent during FY21-22 to 23.22 percent during FY22-23, and, the latter, during the same period, moving up from 21.25 percent to 28.33 percent.
According to the latest shareholding pattern data available for the September 2023 quarter, the company’s Promoters hold a 74.26 percent stake followed by the Public (retail) investors holding the remaining 25.74 percent stake in the company.
Kewal Kiran Clothing Limited is a company based in India that is engaged in the process of manufacturing, marketing, and retailing branded garments as well as finished accessories. Some of its well-known brands include Killer, LawmanPg3, K-Lounge, and many more.
Written by Amit Madnani
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