In Wednesday’s trading session, the shares of one of the leading Textile manufacturers in India specialises in manufacturing high-quality cotton yarn, Knitted fabrics, cottonseed oil and oil cakes are in focus after securing a repeat order worth Rs. 5.35 crore for supplying 273 MT of cotton yarn.
Price action
With a market capitalization of 451.47 Crores on Wednesday, the shares of A B Cotspin India Ltd (NS:ABCO) in focus after making a high of Rs 438.65 compared to its previous closing price of Rs 438.65.
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What happened
AB Cotspin India Ltd came into focus on Wednesday upon receiving a repeat order worth Rs. 5.35 crore for supplying 273 MT of cotton yarn. This repeat order highlights the company’s strong market position and the trust it has earned from its customers due to its high-quality products.
About the company
AB Cotspin India Ltd is a textile manufacturer based in Jaitu, Punjab, the company has evolved from a cotton ginning unit into a fully integrated manufacturing operation, producing high-quality cotton yarn, Knitted fabrics, cottonseed oil and oil cakes.
The company serves both domestic and international markets, leveraging its strong logistics and supply chain network for efficient delivery. Their commitment to sustainable and ethical practices is evident through compliance with the Better Cotton Initiative (BCI) standards and its focus on environmental responsibility, labor rights, and community engagement.
The company has an impressive order book of approximately 973 MTs valued at Rs. 26.35 Crores. It plans to expand its capacity in FY 2024-25 itself, this strategic growth aligns with its focus on innovation, sustainability, and market diversification, positioning the company as a key player in the competitive textile industry.
Future Outlook
The company has set ambitious financial projections for FY 2024-25, with expected sales ranging between Rs. 275 crore and Rs. 290 crore and the company anticipates achieving an EBITDA of approximately Rs. 32 crore. These projections reflect the company’s strong market position, continued customer trust, and its commitment to sustaining growth through high-quality products and efficient operations
Financials
The company’s revenue rose by 38.73 percent from Rs 111 crore in Q2FY24 to Rs 154 crore in Q2FY25. Meanwhile, Net profit rose by 56.1 percent from Rs 2.53 crores to Rs 3.95 crore during the same period.
Key Financial ratios
AB Cotspin India Ltd has an Return on Equity (RoE) of 12 percent and a Return on Capital Employed (RoCE) of 13 percent. Furthermore, the company’s debt-to-equity ratio is 1.3
Stock Performance
The stock has provided impressive returns of about 275 percent over the last year, along with a 77 percent gain in the past six months of 2024, it has continued to perform strongly.
Written by Sridhar
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