Textile stocks rise 4% after company board announces 4:1 bonus issue
Shares of the small company, which provides specialized solutions to the rope and infrastructure industry globally, surged 4% to Rs.3,9255 per share following the board’s announcement to finalize the plan to issue bonus shares.
price fluctuations
In Thursday’s session Garware Technical Textiles LimitedThe stock price rose 4% from the previous close of Rs.3,825.35 per share to a daily high of Rs.4,050 per share, with the stock’s share price 52W higher at Rs. That’s 4,478 per share. Achieved a return of over 25% over the past year.
what’s going on
The Board of Directors of Garware Technical Fibers Ltd approved on Thursday 14 November 2024 to consider and recommend the issuance of bonus shares to shareholders.
The suggested bonus issuance ratio is 4:1. This means that shareholders will receive 4 fully paid-up shares of Rs.10 each for each fully paid-up share worth Rs. 10 per week. This is achieved through capitalization of company reserves.
financial performance
Looking at the company’s financials, Garware Technical Fibers reported revenue of Rs.405.09 crore in the second quarter of FY25, a 26% increase over Rs.320.80 crore in the same quarter last year. However, profit after tax (PAT) stood at Rs.64 crore, up 34.66% from Rs.47.53 crore in the year-ago quarter.
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global footprint
Garware Technical Fibers Limited operates in over 75 countries and has a strong international presence and six overseas subsidiaries. The company generates approximately 60% of its sales from exports, focusing on sectors such as aquaculture, agriculture and fishing. Their global presence is supported by partnerships and innovative product offerings tailored to a variety of markets.
Revenue by Segment
The company generates 81% of its total revenue from synthetic ropes and the remaining 19% from textile and industrial products and projects as of the September 2024 quarter.
company profile
Established in 1976, Garware Technical Fibers Limited is a leading industrial fabrics manufacturer in India, specializing in products such as ropes, nets and coated fabrics. The company operates in a variety of sectors, including aquaculture, agriculture, and defense. The company’s business model focuses on innovation and quality and is suitable for both domestic and international markets.
Written by – Santhosh S
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