This small-cap stock surges 533% in 9 months defying weak market trend. Do you own?

Multibagger penny stock: Despite the broader market reeling under significant selling pressure over the last five months, some stocks have managed to defy the trend, with Aarvee Denims and Exports being one such stock that has consistently moved in an upward direction, closing each month in positive territory.

Over the last nine months (including the current month), the company’s shares have surged from ₹24 apiece to the current market price of ₹152, resulting in a stellar gain of 533%. Notably, the stock ended all nine months in the green, with November being the month with the highest gain of 54%, followed by a 48% increase in December.

Looking further back, the stock began its one-way rally in April 2020 at ₹9 per share, and at the current market price, it has delivered a whopping return of nearly 1,600%. It ended the previous calendar year with a return of 300%, and in the current year so far, it is already up by another 33%, even as the Nifty Smallcap 100 index has tumbled 17% during the same period.

Although the stock has maintained a steady upward trend in recent years, it is still trading below its all-time high of ₹166, which it reached in August 2005. The stock took almost 20 years to trade near its record high. Its all-time low was ₹6.30 per share, recorded in April 2020. At current levels, it is up 2,312% from that low.

According to Q3FY25 shareholding data, the company’s promoters own a majority stake of 60.8%, followed by general public shareholders, who hold 38.9%.

About the Company

Aarvee Denims and Exports is one of the leading global players in the textile industry, known for its integrated production capabilities across yarn, denim fabric, and non-denim bottom-wear fabric.

The company operates a fully integrated production setup with a yarn manufacturing capacity of 39,000 metric tons per annum, denim fabric production of 85 million meters per annum, and non-denim bottom-wear fabric production of 18 million meters per annum.

In addition to its textile operations, Aarvee Denims has ventured into green energy generation with 20.5 MW of installed wind power capacity, reinforcing its commitment to sustainability, its website showed. As a manufacturer primarily focused on denim, the company relies on coarser cotton that can spin cotton counts ranging from ‘5’ to ‘20.’.

To enhance efficiency and maintain fabric quality, Aarvee Denims has its own yarn manufacturing facility, which helps reduce manufacturing cycle time, minimizes dependency on outsourced yarn, and ensures consistency in fabric quality for both denim and non-denim bottom-wear production.

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