This Microcap Textile stock, which is in the business of manufacturing and marketing of Traditional and Polymer-based Technical Textiles and Rubber products up 14 percent after the company reported a net profit increase of 89 percent.
Price Movement
In Thursday’s trading session, Mahalaxmi Rubtech Limited stock was up 20 percent in the day’s trade after the company reported a net profit increase of 89 percent. The stock has delivered a negative return of around 33.4 percent in the past year underperforming the Nifty Index in the same period. The stock touched a high of Rs. 169 which is 20 percent higher than the previous close price of Rs. 141. The stock rebounded and was trading at Rs. 158.35 which is 12.30 percent higher than the closing price.
What happened
Such a bullish movement in the scrip price was a result of an earnings update released by the company. The company posted a significant improvement in net profits and a jump in revenue in Q2FY25.
According to its recent filing, In Q2FY25, Mahalaxmi Rubtech Ltd reported a 24.05 percent increase in revenue to Rs.23.62 crore in Q2FY25, compared to Rs.19.04 crore in Q2FY24. Furthermore, quarterly, the company saw an increase of 14.66 percent in revenue from Rs.20.60 crore in Q1FY25.
In the same period, the company reported a significant increase in net profit of 89 percent to Rs.3.49 crore in Q2FY25, up from Rs.1.84 crore in Q2FY24 and a 7 percent increase from Rs.3.26 crore in Q1FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 24.88 percent, while return on equity (ROE) is at 23.33 percent. The company has a current ratio of 4.51 and a debt-to-equity ratio of 0.36.
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Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 64.80 percent stake in Mahalaxmi Rubtech, Foreign Institutional Investors (FII) holding around 0.57 percent, Domestic Institutional investors (DII) standing at 0.07 percent, and public holdings standing at 34.56 percent.
Revenue Segment
According to the company’s quarterly September 2024 report, they considered revenue from two segments which are Traditional Textiles as of Q2FY25.
About the company
Mahalaxmi Rubtech Limited, established in 1991 is based in Gujarat, India. They specialize in the manufacturing of offset printing blankets, technical textiles, and rubber products. The company employs a technology-driven approach and focuses on research and development to innovate its product offerings. Operating primarily in the textile sector, Mahalaxmi Rubtech serves both domestic and international markets, focusing on quality and customization to meet diverse client needs. Their business model combines manufacturing with marketing, targeting a range of industries that require specialized textile solutions.
Written by Santhosh S
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