Vardhman Polytex share has delivered strong returns to investors in last 23 trading sessions or nearly one month. An investment of Rs 1 lakh in Vardhman Polytex stock on June 4 would have grown to Rs 3.22 lakh on July 7, 2020. On July 7, Vardhman Polytex share price hit upper circuit of 5% at Rs 9.52 compared to close of Rs 2.95 on June 4, delivering 222% returns for its shareholders.
During the same period, Sensex gained 6.74% from 33, 980 on June 4 to 36,273 in today's trading session.
The microcap stock saw only buyers and no sellers during the trade today. This penny stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Penny stocks are those scrips that trade generally with a share price less than Rs 10.
These stocks have very low market capitalisation and typically under Rs 500 crore. Trading in these stocks is considered risky since their fundamentals are not very encouraging and institutional investors also stay away from these stocks.
Vardhman Polytex share comes under the GSM category.
Sebi has placed penny stocks with market cap lesser than Rs 10 crore and free float market cap under 1 percent under the GSM categoty. Graded Surveillance Measures (GSM) are imposed on shares which witness an abnormal price rise not commensurate with financial health and fundamentals.
The share has gained 142.24% in one year and risen 281% since the beginning of this year. In one week, the share has gained 19.35. Total 0.13 lakh shares changed amounting to turnover of Rs 1.21 crore on BSE.
Market cap of the firm rose to Rs 21.22 crore.
The firm will announce earnings for the quarter and year ended March 31, 2020 on July 10. Earlier, a meeting of the board of directors of the company for considering Q4 earnings was scheduled to be held on June 29, 2020.
In Q3 of last fiscal , the firm logged widening of net loss to Rs 20.1 crore against Rs 19.8 crore loss in Q3 of 2018-19 fiscal. However, loss for Q3 narrowed from Rs 21.2 crore loss in Q2 of 2019-20.
The firm has posted loss in last 11 quarters (excluding Q4 of current fiscal. Vardhman Polytex last posted profit of Rs 1.69 crore in quarter ended March 2017.
For fiscal ended March 2019, net loss narrowed to Rs 74.26 crore against loss of Rs 423.88 crore for fiscal ended March 2018. However, in fiscal 2017, Vardhman Polytex reported profit of Rs 0.23 crore.
Vardhman Polytex Limited (VPL) is the flagship company of textile conglomerate Oswal Group with multiple production facilities located at Bathinda, Ludhiana, Nalagarh. The company manufactures yarn, garments and develops residential and commercial colony or project. The firm operates through two segments: Textile and Real estate.
The company's residential and commercial colony/project Vardhman Park is situated at Chandigarh Road, Ludhiana. The company has two subsidiaries, namely F.M. Hammerle Textiles Limited and F.M. Hammerle Verwaltungs GmbH.