A Textile stock surged nearly 7 percent after securing a Rs.60.7 crore technical textile order from the Odisha government. This strategic win highlights the company’s growing involvement in the infrastructure and textile sectors, strengthening its position in the market.
Price Movement
In Friday’s trading session, Mafatlal Industries Ltd’s share price surged 7 percent, reaching an intraday high of Rs.206.65 per share from its previous close of Rs.193.20 apiece. The price has since retreated to Rs.197.35 per share. Over the past five years, the stock has delivered impressive returns of over 1,500 percent.
Rational for the rise
Mafatlal Industries Limited a prominent player in the Indian textile industry, has secured an Rs.60.7 crore order from the Odisha Government in the health and hygiene sector, focusing on technical textiles.
The order involves supplying sanitary napkins to government schools and the state medical corporation network across Odisha, aimed at promoting personal hygiene among school-going girls. The project is expected to be completed over the next three to four quarters.
Management Commentary
Commenting on the development, Mr. M. B. Raghunath, Chief Executive Officer, said, “I am very delighted to announce the receipt of this order of sanitary napkins. The order is in line with the Company’s strategy to grow the hygiene segment of Technical Textiles.
The company entered this segment in the year 2016. The company is committed to deliver innovative textile solutions that make a meaningful impact on society as it addresses the fundamental needs of hygiene and enhance the overall well-being of the female students.”
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Manufacturing Facilities
The company boasts advanced manufacturing plants situated mainly in Nadiad and Navsari, Gujarat. These facilities are equipped to handle a range of textile processes, including bleaching, dyeing, weaving, and finishing.
Financial Performance
In its recent financial updates, Mafatlal Industries Ltd’s revenue fell 11 percent to Rs.996 crore in Q2 FY25 compared to Rs.309 crore in the same quarter a year ago. However net profits fell slightly 5 percent to Rs.20 crore from Rs.21 crore in the same period.
Company Overview
Mafatlal Industries Ltd., based in Mumbai, is a well-established textile manufacturer in India, part of the Arvind Mafatlal Group, which boasts a rich history of over a century. The company specializes in producing a diverse range of products, including shirtings, suitings, denims, and home textiles, and has a strong presence in the Indian textile industry.
Written by – Siddesh S Raskar
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