Microcap stock jumps after receiving 500-MT order worth ₹14 Cr for cotton yarn

The shares of a microcap company that is engaged in the business of manufacturing of cotton yarn, knitted fabric, cottonseed oil, and oil cakes are in focus as it secured a major 500 MT Order Worth around Rs 14 Crore. 

Price Action 

The shares of AB Cotspin India Ltd, with a total market capitalization of Rs 479.62 Crore on Thursday,  reached an intraday high at Rs 467.40 per share, gaining around 0.7 percent in today’s trade. As of 2:30 pm, the shares retreated from their day’s high and were trading at Rs 466 per share, which was 0.4 percent higher than the previous closing of Rs 464.15. 

About the Order 

As per a press release dated March 27, 2025, AB Cotspin India Ltd announced its landmark achievement of securing a 500 MT order worth around Rs 14 crore for Cotton Yarn. The company is confident that this order will bolster its market position as a trusted supplier of high-quality cotton yarn, knitted fabrics, and eco-friendly products.

Management Commentary 

Mr. Deepak Garg, Managing Director of the A B Cotspin India, stated that this order will not only reinforce the company’s position in domestic and international markets but also significantly contribute to expanding their sales and profitability.

He added that the company will remain focused on driving long-term growth while making a positive impact on the environment and the textile industry as a whole. The management also anticipates achieving sales of around Rs 350 to 400 crore, with EBITDA of Rs 50 to 55 crore and PAT of Rs 30 to 35 crore for FY25 -26. 

Also read: Defence stock jumps after receiving ₹152 Cr order from the Ministry of Defence

Recent Developments 

In February 2025, the company secured a 500 MT order for Cotton Yarn valued at approximately Rs 15 crore. Additionally, in January 2025, the company completed a significant expansion of its solar power capacity by installing an extra 331 KW, increasing its total installed solar capacity to 3,131 KW. This expansion will contribute to a reduction in the company’s carbon footprint.

Financials

The company’s revenue from operations declined by 13.6 percent YoY from Rs 68.53 Crore in Q3FY24 to Rs 59.24 Crore in Q3FY25. However, their net profit grew by 44 percent YoY from Rs 2.83 Crore to Rs 4.07 Crore over the same period. 

About AB Cotspin Ltd

AB Cotspin Ltd is a textile manufacturer that is engaged in the business of manufacturing and trading of yarns and other allied products. The company is involved in manufacturing cotton yarns, cottonseed oil, oilcakes, and knitted fabrics. It serves both domestic and international markets, leveraging its strong logistics and supply chain network for efficient delivery.

Written By Adhvaitha Nayani

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