Filatex India shares jump 44% from intra-day low on heavy volumes

A combined 15.08 million equity shares, representing 6.7 per cent of total equity of the company, had changed hands on the NSE and BSE.

Shares of Filatex India jumped 44 per cent on the National Stock Exchange (NSE) and 43 per cent on the BSE in Tuesday’s intra-day trade on the back of heavy volumes.

The stock of the textile company hit an intra-day high of Rs 104, bouncing back 44 per cent from its low of Rs 72.35 touched on the NSE. On the BSE, it hit an intra-day high of Rs 103.90, recovering 43 per cent from its low of Rs 72.50 hit around 11:30 am. It slipped 20 per cent in intra-day deal. 

At 12:57 pm, Filatex was trading 6 per cent higher at Rs 96.40 on the NSE and BSE. A combined 15.08 million equity shares, representing 6.7 per cent of total equity of the company, had changed hands, data from exchanges showed. The names of the buyers and sellers could not be ascertained immediately. In comparison, the S&P BSE Sensex was up 1.8 per cent at 56,836 points.

On September 27, 2021, the board of Filatex had allotted 2.8 million equity shares at a price of Rs 95 per share to the promoter group of the company on a preferential basis.

Filatex India is among the country's leading manufacturers of polyester filament yarn focused on capitalising synergies created through its integrated business mode. In July-September quarter (Q2FY22), Filatex commissioned and began commercial production of its captive thermal power plant of 30 MW capacity at Dahej.

For the first half (April-September) of the current financial year 2021-22 (H1FY22), the company had posted a net profit of Rs 125.92 crore against a net loss of Rs 18.59 crore. Revenue from operations during the period was more-than-double at Rs 1,664 crore from Rs 653 crore in H1FY21. The good capacity utilization and improvement in demand helped Filatex to deliver stronger revenues from operations and operating profit.

The Income-Tax Department had conducted a search under section 132 of the Income-Tax Act, 1961 at the business premises of the company on September 01, 2021. ''As on the date of releasing the quarterly financial results, the Company has not received any tax demand/claim from the Income-tax department. Management is of the view that this will not have any material impact on the company's financial position as at September 30, 2021, hence no provision for any liability has been recognised in these financial results,'' Filatex said while announcing Q2 results on November 10, 2021.

Despite today's sharp upward movement from its lows, the stock has underperformed the market by falling 7 per cent, as compared to 3.8 per cent decline in the S&P BSE Sensex in the past three months. It had hit a record high of Rs 128 on October 12, 2021.