In a remarkable market development, a micro-cap textile company has captured investors’ attention by hitting the 2% upper circuit today. The firm posted an extraordinary 18,285% year-over-year surge in revenue, accompanied by a 122% increase in net profit, signalling a potential turnaround in the yarn manufacturing sector.
Share Price Movement
The share price of Padam Cotton Yarns Limited hit the 2 percent upper circuit of Rs. 204.40 per share on Thursday, an increase from its previous close of Rs. 200.40 per share. The market capitalisation now stands at approximately Rs. 175.82 crore as of January 09, 2025.
What’s Driving the Price?
Padam Cotton Yarns Limited’s recent Q3 FY25 results have driven a surge in its stock price, with the micro-cap company hitting a 2% upper circuit. The company reported an impressive 18,285% year-on-year revenue growth, reaching Rs. 7.06 crore, marking a 62.5% QoQ increase.
Additionally, net profit saw a remarkable 57% rise from the previous quarter, totalling Rs. 5.10 crore, reflecting a 122% YoY growth. These stellar financial results have sparked investor confidence, contributing to the upward movement in the company’s stock price.
Financial Highlights
According to its recent filing, in the quarter ending December 31, 2024, Padam Cotton Yarns’s consolidated revenue has increased by 18,285 percent YOY from Rs. 0.0384 crore in Q3 FY24 to Rs. 7.06 crore in Q3 FY25 and increased by 62.5 percent QoQ from Rs. 4.34 crore in Q2 FY25.
The company’s consolidated net profit has increased by 122 percent YoY, from Rs. 2.72 crore in Q3 FY24 to Rs. 5.10 crore in Q3 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 57 percent QoQ from Rs. 4.20 crore.
The average price-to-earnings (P/E) ratio in the textile industry is 45. which is less than Padam Cotton Yarns’s current P/E ratio of 102.15.
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Market Outlook
The Indian textile and apparel industry, valued at US$ 197.2 billion in 2023, is set to grow at a CAGR of 12.6%, reaching US$ 592.7 billion by 2032. Key drivers include rising demand for premium clothing, government initiatives like the PLI schemes, and a shift towards sustainable materials. The availability of raw materials like cotton and silk further supports growth.
Additionally, the increasing use of eco-friendly textiles, coupled with the rise of e-commerce, offers a positive market outlook for the industry.
Shareholding Pattern
As of the September 2024 shareholding pattern, Padam Cotton Yarns Limited is primarily held by the promoters at 22.55 percent and the public at 77.46 percent.
About Company
Padam Cotton Yarns Limited (PCYL), a public company based in Karnal, Haryana, has been listed on the Bombay Stock Exchange since 1994. They produce high-quality cotton yarns, including tow-dyed and bulked acrylic yarns, using Japan Exlan technology. The company aims to grow by focusing on innovation, quality, operational efficiency, and employee well-being, planning for long-term success.
Written By Fazal Ul Vahab C H
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