This Anil Goel-owned share zoomed 20% on solid Q1 results, 1:10 stock split

Sportking India hit a 52-week high of Rs 1,197.95, surged 20% after reported a solid earning with 75.1% YoY growth in PAT at Rs 31.8 crore in Q1FY25, on back of healthy operational performance.

Shares of Sportking India hit a 52-week high of Rs 1,197.95 per share, surging 20 per cent on the BSE in Monday’s intra-day trade after it reported a solid earnings show with 75.1 per cent year-on-year (YoY) growth in profit after tax at Rs 31.8 crore in June quarter (Q1FY25), on back of healthy operational performance.

In Q1FY25, the company’s revenue from operations stood at Rs 634.0 crore, up 17.7 per cent YoY and 3.7 per cent quarter-on-quarter (QoQ). Exports contributed 47 per cent in Q1FY25. Growth for the quarter was volume led with production and sales volumes both registering a growth of 10 per cent and 15 per cent YoY, respectively, the company said.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) jumped 48.3 per cent YoY at Rs 73.8 crore; Ebitda margin improved by 66 bps sequentially & 240 bps on a yearly basis to reach 11.6 per cent.

The management said the overall demand scenario remains encouraging with domestic market demand rising led by retailers and recovery of local segments such as weaving and denim. Export market demand for yarns garnered strength in our key market such as Bangladesh, the management said, and remain hopeful of the overall industry prospects going forward aided by improvement in demand, competitive cotton prices and regulatory support towards the sector’s growth.

Moreover, the board of directors of the company approved the sub-division/split of existing 1 equity share of face value of Rs 10 each into 10 equity shares of face value of Re 1 each.

With a view to improve the liquidity of company's equity shares in the stock market and to make it more affordable to encourage participation of retail investors, the committee decided on sub-division of equity shares, the company said on the rationale behind the stock split.

At 11:15 am, shares of Sportking India were trading 18 per cent higher at Rs 1,174, as compared to 0.02 per cent rise in the BSE Sensex. In past five weeks, the stock has appreciated by 50 per cent. It had hit a record high of Rs 2,046.95 on October 7, 2021.

Investors Anil Kumar Goel (2.89 per cent) and Seema Goel (1.42 per cent) collectively held 4.31 per cent stake in Sportking India at the end of June 2024 quarter, the shareholding pattern data shows.

Sportking India produces well diversified range of grey and dyed textile yarns to cater to the demands of weaving and knitting industry in domestic as well as international markets.