One of the small-cap textile stocks that produces and exports technical textile yarn, cotton yarn, and polyester yarn. The stock is under scrutiny following Societe Generale’s acquisition of a 0.77 percent stake.
Stock Price Movement:
Sanathan Textiles Limited’s shares, which had a market valuation of Rs. 3,112.82 crores, were trading at Rs. 369 per equity share, down around 5.14 percent from the close price of Rs. 389 the day before.
What’s new?
At an average price of Rs. 401.42 per share, Societe Generale Net purchased 695,688 shares of Sanathan Textiles on December 27, 2024, for a total of Rs. 27.92 crore, or 0.77% of the company. In addition, it made Rs. 1.68 crore by selling 41,180 shares on the NSE for Rs. 409.26. This indicates a net buy and a favourable outlook for the stock.
Product & Capacity:
The firm produces a variety of yarns, such as polyester yarns with a capacity of 2 Lac MTPA, technical textiles with a capacity of 9,000 MTPA for use in defence, highways, and agriculture, and pure cotton yarns with a capacity of 14,000 MTPA under the Puro Cotton brand.
Clientele:
Welspun Enterprises, Arvind, AYM Syntex, Banswara, D’ Decor, Faze 3, International Conveyors, Kumar Elastics, Page Industries, Siyaram, Trident Group, and more significant and varied clients are served by the firm.
Results and ratios for the most recent quarter:
The revenue of Sanathan Textiles Limited increased by 11.44 percent from Rs. 3,329 crore in FY23 to Rs. 2,958 crore in FY24. Sanathan Textiles Limited’s net profit increased from Rs. 153 crore in FY23 to Rs. 134 crore in FY24, a 12.42% increase.
The company’s ROCE and ROE should be 13.5 and 10.9 percent, respectively, in terms of return ratios. The company’s debt-to-equity ratio should be 0.49x. The EPS for Sanathan Textiles Limited should be Rs. 18.6.
Overview of the Company:
Founded in 2005, Sanathan Textiles Limited became a public limited company in 2021. The business is a top producer and exporter of blended yarns, polyester, and cotton.
The company’s headquarters are in Silvassa, Dadra & Nagar Haveli, and it also maintains a corporate office in Mumbai. The company’s speciality is making yarns for technical textiles and other applications.
The firm has a corporate office in Mumbai in addition to its headquarters in Silvassa, Dadra & Nagar Haveli. The business specialises in creating yarns for technical fabrics and other uses.