This microcap textile stock has zoomed 100% in 5 days; climbed 10% today

Shares of Mahalaxmi Rubtech have continued their upward movement, hitting a new high of Rs 311.10, surging 10 per cent on the BSE in Friday's intra-day trade amid heavy volumes

Shares of Mahalaxmi Rubtech have continued their upward trajectory, hitting a new high of Rs 311.10, and surging 10 per cent on the BSE in Friday’s intra-day trade amid heavy volumes. The stock price of the microcap company is trading higher for the fifth straight trading session, zooming 100 per cent from the level of Rs 155.60 on December 6, 2024. In comparison, the BSE Sensex was up 0.26 per cent during the period.

 

Till 02:23 PM, the average trading volumes on the counter had jumped over two-fold. A combined 2.4 million shares, representing nearly 23 per cent of the total equity of the company, have changed hands on the NSE and BSE.

 

 

On clarification on movement in share price of the securities of Mahalaxmi Rubtech, the company said that it has been regularly sharing all the information/announcements that may have a bearing on the operation/performance of the company including all price sensitive information with the Stock Exchanges, from time to time. “We further state that there is no unpublished price sensitive information available with the Company at present,” the company said on Wednesday, December 11.

 

Meanwhile, as on September 30, 2024, Mahalaxmi Rubtech has 10.62 million total outstanding shares. The promoters held 64 per cent stake, while retail individual shareholders held 24.72 per cent holding, the shareholding pattern data from exchanges showed.

 

Mahalaxmi Rubtech is engaged in the manufacturing and marketing of products of traditional textiles and polymer based technical textiles and rubber.

 

India’s total textile exports are expected to reach $65 billion by FY2026 and are expected to grow at 10 per cent compound annual growth rate (CAGR) 2019-2020 to reach $190 billion by 2025-2026. The textiles and apparel industry in India has strengths across the entire value chain from fibre and yarn to fabric and apparel. The Indian textile and apparel industry is highly diversified, with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products, among others.

 

The Ministry of Textiles under the Government of India has taken some significant steps to promote the textile Industry in the country. For instance, the Indian government has launched the Technology Up-gradation Fund Scheme and Production Linked Incentive (PLI) Schemes that aims to make available funds to the domestic textile industry for technology upgradation and setting up of new units.  This scheme aims to generate annual growth in volume terms in cloth production and in value terms in exports by increasing domestic value addition and technology depth and enhancing global competitiveness, the company said in its FY24 annual report.

 

Meanwhile, according to JM Financial Institutional Securities, India’s market share in apparel exports to the US and the UK has risen steadily to 7 per cent / 6 per cent in 2024 from 6 per cent / 5 per cent in CY23. China has been losing market share across the world (its UK market share was down from 27 per cent in CY20 to 19 per cent in CYTD 2024), with rising labour costs amidst the China+1 theme playing out.  The internal turmoil in Bangladesh and high factor costs in Vietnam might play well for Indian exporters. The huge addressable market size / top-notch execution / UK FTA bode well for key players in India’s home textile / apparel sector, the brokerage firm said in a textile sector report.