60 Per Cent From 52-Week Low: Gujarat-Based Textile Penny Stock Under Rs 30; Company Reports Revenue of Rs 1,520 Crore & PAT of Rs 24 Crore in FY25
The stock is up over 60 per cent from its 52-week low of Rs 18 per share.
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Gujarat-based Chiripal Group, manufactures and distributes a wide range of fabrics, including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, it specialises in dyeing, printing, and processing denim and other fabrics for both its collections and client-specific jobs. Its fabrics come in various compositions like 100 per cent cotton, cotton blends, and modal, and they are a leading supplier of stretch denim. With a focus on innovation, they offer diverse finishes, weaves, blends, and colours. Their extensive production capacity comes from multiple facilities in Ahmedabad, Gujarat, and they boast an impressive list of clientele, including well-known international fashion brands. The company has a market cap of over Rs 500 crore.
According to annual results, the net sales increased by 5 per cent to Rs 1,520 crore and net profit increased by 14 per cent to Rs 24 crore in FY25 compared to FY25. Looking at its Quarterly Results, the company reported net sales of Rs 391.46 crore and a net profit of Rs 4.88 crore in Q4FY25.
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Vishal Fabrics Ltd has acquired a 35.41 per cent equity stake in Nandan Industries Private Limited (NIPL) by purchasing 528,100 shares for Rs 6,49,56,300. This related-party transaction, completed after NIPL became an associate on March 29, 2024, sees Vishal Fabrics investing in a company that reported a turnover of Rs 226.04 crore for the fiscal year ended March 31, 2024. In a separate development, Vishal Fabrics also allotted 5,000,000 equity shares to Multitude Growth Funds upon the conversion of an equal number of warrants. This conversion, which involved the receipt of Rs 11,47,50,000 (75 per cent of the warrant issue price), leaves 45,000,000 warrants outstanding, convertible within 18 months.
The stock is up over 60 per cent from its 52-week low of Rs 18 per share. The company's promoters have a commanding 67.30 per cent ownership stake, while FIIs hold 5.61 per cent and public shareholders own 27.09 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.