Kitex Garments hits 52-week high, zooms 50% in three days

The company plans to invest Rs 1,000 crore in Telangana

Shares of Kitex Garments hit a 52-week high of Rs 165 as they rallied 17 per cent on the BSE in intra-day trade on Monday on the back of heavy volumes. The stock of Kitex Garments, one of the world's leading infant apparel manufacturers, has rallied 50 per cent in three days after the company announced a Rs 1,000 crore investment in Telangana.

At 09:57 am, the stock was trading 16 per cent higher at Rs 163 on the BSE, as compared to a 0.53 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled, with a combined 5.8 million equity shares having changed hands on the NSE and BSE so far.

Kitex Garments is in the business of manufacturing and exporting garments. The company manufactures different types of garments such as hosiers shirts, pants, jackets, innerwear and outerwear. The company also exports infant and children's wear and jackets to the United States.

For the financial year 2020-21 (FY21), Kitex Garments reported a 47 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 54.27 crore due to lower operating income. The company’s revenue from operations was down 38 per cent at Rs 455 crore as against Rs 739 crore in the corresponding quarter of the previous fiscal.

According to a Business Standard report, Kitex group chairman Sabu Jacob on Sunday said his company plans to initially invest Rs 1,000 crore in Telangana in the first phase and assurances to that effect have been given to the Telangana government.

After technical evaluations are carried out within the next two weeks, a call would be taken on whether to increase the investment there, he added. CLICK HERE TO READ FULL REPORT