This textile stock is trending on October 7

The share surged 10% on the day. 

On October 7, the market is trading in the red. At 11:54 am, the S&P BSE Sensex is trading at 57994.39. Among sectors, Consumer Durables is the top gainer, while Metal is underperforming today. Regarding stock-specific action, Himatsingka Seide Ltd is among the top gainers.

The share surged 10.6% and is trading at Rs 106.25. The stock opened at Rs 95.85 and has made an intraday high and low of Rs 107.5 and Rs 95.8, respectively.

Himatsingka Seide Ltd is a global textile company that designs, develops, manufactures, and sells a wide range of home textile products. It has some of the biggest installed capacities in the world for producing fine-count cotton yarn, drapery and upholstery fabrics, and bedding and bathroom products.

The company produces home textiles for over 12 global brands, licensed and owned. It owns exclusive license rights of global iconic brands like Calvin Klein, Tommy Hilfiger, Kate Spade, Royal Velvet, Barbara Berry and Waverly.

To increase its presence in the European region, it also entered into a licencing agreement with the Walt Disney Company to manufacture and distribute a wide range of home textile products inspired by archives and characters from all of its franchisees, including Disney, Marvel, Pixar, and Lucas.

Sales and net profit for FY22 on a combined basis were Rs 3198 crore and Rs 141 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 10.2% and 9.47%, respectively.

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 638 crore and a net loss of Rs 55 crore.

About the shareholding pattern, 47.57% of the company’s stake is owned by the promoters, 3.15% by FIIs, 9.53% by DIIs, and the rest 39.75% by non-institutional investors.

The company has a market capitalisation of Rs 1013 crore and is currently trading at a PE multiple of 35.6x. The stock has a 52-week high and low of Rs 312 and Rs 87.3, respectively.