Sutlej Textiles jumps as board approves investment in US unit

Sutlej Textiles and Industries surged 5.79% to Rs 91.35 at 12:16 IST on BSE after the company's board approved investment of up to $5 million in an incorporated wholly owned subsidiary in the USA.

The announcement was made after trading hours yesterday, 17 October 2017.

Meanwhile, the S&P BSE Sensex was down 120.95 points or 0.37% at 32,488.21. The S&P BSE Small-Cap index was down 9.57 points or 0.06% at 17,056.58.

On the BSE, 17,000 shares were traded on the counter so far as against the average daily volumes of 4,146 shares in the past one quarter. The stock had hit a high of Rs 94.35 and a low of Rs 87.50 so far during the day. The stock had hit a record high of Rs 98.80 on 19 July 2017 and a 52-week low of Rs 74.15 on 22 November 2016.

The stock had underperformed the market over the past one month till 17 October 2017, falling 5.7% compared with 1.04% gains in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 11.44% as against Sensex's 1.67% rise. The scrip had also underperformed the market in past one year, rising 9.78% as against Sensex's 18.45% rise.

The small-cap company has equity capital of Rs 16.38 crore. Face value per share is Re 1.

The board of Sutlej Textiles and Industries also approved acquisition of the design, sale and distribution business of American Silk Mills, LLC along with its logo, archives, design, customer contracts and some specific assets. The acquisition shall be made through step down subsidiary of the WOS in the USA.

Sutlej Textiles and Industries net profit fell 47.7% to Rs 23.58 crore on 17.97% growth in net sales to Rs 651.99 crore in Q1 June 2017 over Q1 June 2016.

Sutlej Textiles and Industries is an integrated textile manufacturing company.

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