Smallcap textile stock hits 20% upper circuit on block deals. Details here

Leading player in the textile industry, Mafatlal Industries locked on its 20% upper circuit on stock exchanges during Monday's session. Mafatlal Ind is a smallcap stock that has given double-digit returns in a year. In a block deal, the promoter offloaded 1.15 crore equity shares aggregating to the tune of ₹63.48 crore. However, Sumil Holdings purchased the same equity shares in the open market.

As per the BSE data, in a block deal, promoter Hrishikesh Arvind Mafatlal offloaded 1.15 crore equity shares in Mafatlal Industries at ₹55.2 per share. The transaction was valued at around ₹63.48 crore.

On the other hand, the data revealed that Sumil Holdings bought 1.15 crore equity shares in the company at the same price of ₹55.2 per share aggregating to ₹63.48 crore.

On BSE, Mafatlal Ind stock froze at the 20% upper circuit of ₹65.60 apiece. Generally, an upper circuit in a stock means the highest possible price that the stock could trade at on a particular day.

Mafatlal Ind's market cap is around ₹462.36 crore on BSE.

The stock's earnings per share are at ₹31.08, while its price-to-equity ratio comes at 2.11 times, and its return on equity (ROE) is at 6.08%.

Year-to-date, Mafatlal Ind's stock has gained by nearly 86%. Compared to December 26, 2021 price level, the stock has skyrocketed by nearly 91% on Dalal Street.

Last month, the stock had carried a stock split in the ratio of 5:1.

Earlier this month, the company established a garment unit in Sangli, Maharashtra.

In the first six months of FY23, the company's net profit more than doubled to ₹24.84 crore compared to ₹10.32 crore in the same period a year ago. While revenue from operations climbed to ₹735.10 crore in H1FY23 versus ₹406.77 crore in H1FY22.

Mafatlal Industries has stepped into diverse fields of Textiles, Rubber Chemicals, Information Technology, Real Estate, E-commerce, and Healthcare. The company is among the leading players in the textile industry for the past decades.