This textile stock surged 6% today

Yesterday, the scrip hit a fresh 52-week low.

On December 20, the market is trading in the red. At 11:15 am, the S&P BSE Sensex is trading at 61,194.72, down 1%. Among sectors, Consumer Durables and Financials are outperformers today, while IT and Telecom are underperforming. Regarding stock-specific action, Himatsingka Seide Ltd is among the top gainers.

Yesterday, the shares of Himatsingka Seide Ltd hit a fresh 52-week low. However, the stock surged 6% today and is trading at Rs 90.95. The stock opened at Rs 85.8 and so far, made an intraday high and low of Rs 91.7 and Rs 85.8, respectively.

Himatsingka Seide Ltd is a global textile company that designs, develops, manufactures, and sells a wide range of home textile products. It has some of the biggest installed capacities in the world for producing fine-count cotton yarn, drapery and upholstery fabrics, and bedding and bathroom products.

The company produces home textiles for over 12 global brands, licensed and owned. It owns exclusive license rights of global iconic brands like Calvin Klein, Tommy Hilfiger, Kate Spade, Royal Velvet, Barbara Berry and Waverly.

To increase its presence in the European region, it also entered into a licencing agreement with The Walt Disney Company to manufacture and distribute a wide range of home textile products inspired by archives and characters from all of its franchisees, including Disney, Marvel, Pixar, and Lucas.

Sales and net profit for FY22 on a combined basis were Rs 3198 crore and Rs 141 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 10.2% and 9.47%, respectively.

For the latest September quarter, on a consolidated basis, the company generated revenue of Rs 613 crore, however, reported a net loss of Rs 34 crore.

 About the shareholding pattern, 47.57% of the company’s stake is owned by the promoters, 3.15% by FIIs, 9.53% by DIIs, and the rest 39.75% by non-institutional investors.

The company has a market capitalisation of Rs 895 crore. The stock has a 52-week high and low of Rs 283.45 and Rs 85.3, respectively.