The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    This Covid-beater has risen 7-fold since March low; profit swells 650% in Q2

    Synopsis

    Amid the ongoing momentum, the stock has been hitting upper circuit limits for five sessions now. On Friday, the stock rallied 5 per cent to hit a new 52-week high of Rs 163.50, having recorded a steep rise from its 52-week low of Rs 21.85 hit on March 25 amid the Covid-19 disruption.

    iStock
    The company’s Executive Chairman Anil Kumar Jain said the company recorded its highest-ever quarterly sales volume in a tough operating environment during the September quarter.

    Related Companies

    NSE
    BSE

    PEER COMPANIES

    PEER COMPANIES

    A smallcap textile player has been creating a lot of buzz on Dalal Street for three reasons. First, its shares have rallied more than 7 times since March lows, secondly, the company has reported 650 per cent growth in second quarter profit, and lastly, individual investor Mukul Agrawal increased stake in the company during the quarter gone by.

    This smallcap firm is Indo Count Industries, which has a market-capitalisation of Rs 3,220 crore.

    The company on Wednesday posted a consolidated net profit of Rs 81.81 crore against Rs 10.89 crore reported for the same quarter last year. The topline increased 25.63 per cent YoY to Rs 713.79 crore.

    Amid the ongoing momentum, the stock has been hitting upper circuit limits for five sessions now. On Friday, the stock rallied 5 per cent to hit a new 52-week high of Rs 163.50, having recorded a steep rise from its 52-week low of Rs 21.85 hit on March 25 amid the Covid-19 disruption.

    The company’s Executive Chairman Anil Kumar Jain said the company recorded its highest-ever quarterly sales volume in a tough operating environment during the September quarter.

    “We remain committed to creating new and progressive approaches to our product portfolio and services, and thus continue to contribute to the development of customers.”

    Incorporated in 1988, the company is a vertically-integrated textile player with presence across the value chain.

    Majority of its revenues come from the US. Prominent non-US markets comprise the UK, Canada, Europe, MENA and Australia. The company exports its products to 54 countries around the world. It is also one of the largest manufacturers and exporters of bed linen from India and among the top three-bed sheet suppliers to the USA.

    The company believes the ‘China plus One’ strategy will lead to increased capacity utilisation in India. China has 39 per cent share in home textile exports at $19 billion followed by India at 11 per cent, or $5 billion.

    “On the back of the Covid-19 pandemic, many brands are expected to reduce dependence on a single geography. India being the second largest home textile exporter and largest producer of cotton in the world is expected to benefit from this structural shift,” Indo Count Industries said.

    In another development, individual investor Mukul Agrawal, who has over 1 per cent stake in more than 30 companies, raised his stake in Indo Count to 1.32 per cent from 1.14 per cent at the end of June quarter.

    Agrawal’s net worth jumped to over Rs 670 crore in October from around Rs 326 crore in March, data available on Trendlyne showed. He has also raised stakes in other stocks such as KDDL, MPS, Gati, Parag Milk Foods and Neuland Labs.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    1 Comment on this Story

    Thomas42 days ago
    A trail blazer in difficult Covid times.
    The Economic Times