This textile stock is trending today

The stock is trading at an all-time high price

On December 29, the market traded in the red. At 11:17 am, the Sensex is down 0.53%, trading at 60,588, while NIFTY50 is down 0.55%, trading at 18,022. Regarding sectoral performance, Telecom and Consumer Durables are the top gainers, while Power and FMCG are the top losers. Talking about stock-specific action, Jindal Worldwide Ltd is among the top gainers in BSE group ‘A’.

The shares of Jindal Worldwide Ltd surged 4% and are trading at Rs 441.3. The stock opened at Rs 420 and made an intraday high and low of Rs 444.35 and Rs 420, respectively. The stock is trading at a fresh 52-week high today.

Founded in 1986, Jindal Worldwide Ltd (Jindal) today is a diversified and integrated textile, fabric and shirting manufacturer and one of the world’s largest denim fabric manufacturers. It has a 7% market share in Indian denim fabric industry.

The company product offerings include denims, bottom weight, fabrics, premium shirtings and home textile products. The company has four manufacturing plants located in Ahmedabad, Gujarat.

As per FY22, about 62% of the total revenue came from denim business, 13% from bottom weights, 7% from premium shirting and the rest 18% from other segments. About 82% of the revenue came from international market, while the rest 18% came from the domestic market.

Jindal Worldwide is pursuing diversification through clear strategies and thus forayed into the high growth EV Industry by acquiring Earth Energy in May 2022, an EV startup. Earth Energy is a green vision initiative incorporated in 2017 that stood as one of top 20 most promising start-ups in 2020.

For the latest September quarter, on a consolidated basis, the revenue registered a YoY decline of 24.3% to Rs 4775 crore from 6305 crore. However, the net profit jumped YoY by 32% from Rs 25 crore in Q2FY22 to Rs 32.7 crore in Q2FY23.

The company has a market capitalisation of Rs 8848 crore. The stock is trading at a PE multiple of 62x.