Stock of Adinath Textiles has delivered 1,953% returns to shareholders in one year. The microcap share, which stood at Rs 1.55 on August 25, 2020, rose to an all-time high of Rs 31.83 on BSE today. An amount of Rs 1 lakh invested in Adinath Textiles stock 12 months ago would have turned into Rs 20.53 lakh today.
In comparison, Sensex has risen 44.38% during the period.
The stock touched a fresh high of Rs 31.83 today, rising 4.98% against previous close of Rs 30.32. Later, the stock ended 4.98% higher on BSE.
The share has gained 176.54% in the last 21 days. The stock opened with a gain of 4.98% today. Adinath Textiles share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 1,761% since the beginning of this year.
The firm has outperformed its peers in terms of stock market returns during the last one year.
While share of Page Industries has gained 52%, Welspun Industries stock has risen 157% in one year. Another player in the industry KPR Mill's stock rose 217% in one year and Lux Industries share could manage decent gains of 199% for its shareholders during the period under consideration.
However, the stellar performance of the stock is not in line with the firm's financials.
The company has recorded zero sales in last five quarters.
Profit in June quarter stood at Rs 0.23 crore, a rise of 360% against Rs 0.05 crore net profit of corresponding period of last fiscal.
The firm has been able to log profit on the back of other income which stood at Rs 0.54 crore in last quarter.
Despite strong quarterly earnings, investors should be very cautious while considering stock of the firm which is yet to clock sales in last one year.
The firm logged a 557.14% rise in net profit to Rs 0.32 crore for the fiscal ended March 2021 against Rs 0.07 crore loss in the previous fiscal.
Promoters held 43.64 % stake in the firm at the end of June quarter. Public shareholders owned 56.36% stake in the firm during the same period.
Adinath Textiles is engaged in the manufacturing of blended acrylic yarn and trading of unstiched suitings, shirtings and dress materials.
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