Shares of this small-cap stock associated with the manufacturing of textile products rose to 13 percent to hit its 52-week high after ace investor Mr. Ashish Kacholia bought an additional stake in the company. The stock has gained more than 30 percent in the past five trading sessions.
With a market capitalization of Rs 1,194.55 crores, the stocks of Faze Three Limited started their trading session on Tuesday at Rs 499.80 and currently trade at Rs 491.20.
The company’s stock witnessed an intra-day high price, also marked as the 52-week high price, of Rs 539.90 exhibiting a gain of approximately 13 percent as compared to the previous close of Rs 478.55 apiece.
Such sharp movements in the stock prices of the company were observed after Mr. Ashish Kacholia, one of the well-known ace investors based in India, bought an additional stake in the company.
He took an entry into the stocks of Faze Three Limited in September 2021 and, after two years, as per the quarter ended September 2023, he holds 13.17 lakh shares of the company equating to a 5.42 percent stake. Comparing his holdings in Q1 v/s Q2 of FY23-24 he bought an additional 46,172 shares of the company.
During the past couple of financial years, the company’s basic business indicators have consistently increased with the most recent movement in operating revenues from Rs 504.46 crores during FY21-22 to Rs 558.18 crores during FY22-23. Moreover, the bottom-line numbers during the same time horizon, increased from Rs 51.08 crores to Rs 58.3 crores.
On a contrasting note, the company’s profitability ratios such as the return on equity (RoE) as well as the return on capital employed (RoCE), due to increased cost pressure, showed a dip in numbers. The RoE reduced from 25.99 percent during FY21-22 to 23.31 percent during FY22-23, and, the RoCE took a shift down from 24.6 percent to 22.63 percent.
The latest shareholding data of the company as per the September 2023 quarter portrays the Promoters holding a 56.16 percent stake followed by the Public (retail) investors holding the remaining stake of 43.84 percent in the company.
Faze Three Limited is engaged in the business of designing, developing, manufacturing, and exporting home textile products in India. The company’s product portfolio includes cotton & rubber-backed bathmats, outdoor furniture covers, automotive seat covers, and many more. The company’s manufacturing facilities are located in Panipat, Vapi, and Silvassa.
Written by Amit Madnani
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