This stock has surged 25% in two days after Vijay Kedia bought stake

Shares of Ambika Cotton hit a record high of Rs 2,590, on rallying 12 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade. The stock has surged as much as 25 per cent in the last two trading sessions after ace investor Vijay Kedia bought nearly 1 per cent stake in textile company through open market on Thursday.

On February 3, 2022, Vijay Kedia purchased 40,007 equity shares representing 0.70 per cent of total equity of Ambika Cotton Mills for Rs 9 crore. Kedia acquired shares at price of Rs 2,243 on the NSE, the bulk deal data showed. The name of the seller not ascertained immediately.

At 10:23 am; the stock traded 12 per cent higher at Rs 2,574 as compared to 0.18 per cent gain in the S&P BSE Sensex. A combined 209,600 equity shares had changed hands at the counter on the NSE and BSE.

In the past six months, Ambika Cotton Mills has outperformed the market by surging 60 per cent, as compared to 8 per cent rise in the Sensex. In the last one year, the stock has zoomed 155 per cent, as against a 16 per cent surge in the benchmark index.

Ambika Cotton Mills is engaged in manufacturing and selling speciality cotton yarn catering to the needs of manufacturers of premium branded shirts and t-shirts. Exports constitute significant portion of the operations. Further the Company’s wider range of products in its knitting segment has established the newer markets in knitting segment. This ensures more sustained profitable operations.

For the first nine months (April-December) of the financial year 2021-22 (9MFY22), Ambika Cotton reported an over three-fold jumped in profit after tax (PAT) at Rs 133.19 crore. It had posted PAT of Rs 38.98 crore in 9MFY21 and Rs 67.95 crore in entire FY21. The company’s revenue from operations grew 51 per cent to Rs 660 crore in 9MFY22, from Rs 437 crore in 9MFY21.