Shares of Kitex Garments surged by 5%, hitting the upper circuit at ₹635.30 in the morning trade on November 19, 2024. This sharp rally comes ahead of the company’s board meeting scheduled for Friday, November 22, 2024, to consider the declaration and recommendation of bonus equity shares, subject to shareholder approval.
Key Highlights:
- Upcoming Board Meeting: The board will deliberate on the bonus equity shares proposal, aiming to enhance investor value.
- Business Overview: Kitex Garments is a leading manufacturer of fabric and readymade garments, primarily catering to the infants’ wear segment. The company operates through two business segments: garments and fabric, with a strong focus on exports.
- Financial Performance:
- In Q2 FY25, Kitex reported a 181.39% YoY jump in consolidated net profit, reaching ₹37.34 crore.
- Sales rose by an impressive 61.15% YoY to ₹215.88 crore, showcasing robust operational performance.
Market Sentiment:
The stock has remained buoyant following the company’s stellar financial performance and the anticipation of the bonus issue. As of 9:38 AM, shares were locked at the upper circuit of ₹635.30.
Outlook:
Investors are optimistic about the upcoming bonus issue, which could further boost liquidity and attract retail participation in the stock. The announcement reflects the company’s commitment to rewarding its shareholders amidst strong business growth.
