A micro-cap stock engaged in the business of Branded sports goods, surged 12 percent after the company reported a remarkable 476 percent quarter-on-quarter increase in net profit. This strong earnings performance was supported by robust revenue growth, which rose significantly during the same period, highlighting the company’s accelerating business momentum and boosting investor confidence.
During Tuesday’s trading session, the shares of Cravatex Ltd reached an intraday high of Rs.460.00 per share, rising 11.8 percent from its previous close of Rs.411.20 per share. The shares have retreated from the peak and currently trading at Rs.446.05 per share. Over the past month, the stock has surged over 32 percent.
Financial Performance
Cravatex Ltd saw a notable rise driven by strong growth in both net profit and revenue, as highlighted in its latest financial results. In Q4 FY25, the company reported revenue of Rs.52.61 crore, showing a slight decline of 1.37 percent compared to Rs.53.35 crore in Q4 FY24. Sequentially, revenue increased by 51.74 percent from Rs.34.66 crore in Q3 FY25, indicating sustained operational momentum.
Net profit for the quarter stood at Rs.1.44 crore, up sharply by 188 percent from Rs.0.50 crore in Q4 FY24. Compared to Rs.0.25 crore in Q3 FY25, net profit rose significantly by 476 percent.
For the full year FY25, Cravatex posted a total revenue of Rs.183.71 crore, reflecting a decline of 16 percent compared to Rs.218.73 crore in FY24. Annual net profit increased marginally to Rs.4.83 crore, registering a growth of 0.02 percent from Rs.4.83 crore in the previous year.
The company has a Return on Capital Employed (ROCE) of 6.19 percent and a Return on Equity (ROE) of 4.54 percent. Its Price-to-Earnings (P/E) ratio stands at 27.29, lower than the industry average of 44.28. Furthermore, the company maintains a current ratio of 4.22, a debt-to-equity ratio of nil, and an Earnings Per Share (EPS) of Rs.15.07.
Cravatex Ltd, established in 1951 by Ram Kumar Batra and part of The Batra Group, began as the owner of India’s largest chain of dyers and dry cleaners. Over time, the company diversified into garment exports, textile processing, and printing.
The company’s business model focuses on identifying opportunities, developing quality products, delivering excellent customer service, and implementing commercially sound marketing strategies.
Cravatex Ltd operates across several key areas. It runs Proline Fitness, India’s largest fitness retail company, and holds exclusive licensing rights for the Fila brand in India and neighboring countries, as well as in the Middle East and North Africa. In the UK and Europe, its subsidiary BB UK manages sublicenses for Fila and related accessories. The company also has an exclusive distribution partnership for the Wilson brand in India, expanding its presence in sporting goods.
Written by – Siddesh S Raskar
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