Penny stock hits 10% upper circuit after reporting 76% revenue growth & capacity expansion

During Friday’s trading session, the shares of a company engaged in fabric weaving, processing, and making garments hit a 10 percent upper circuit on BSE, after the company reported Q3 FY25 results and capacity expansion.

Price Movement

With a market cap of Rs. 57.6 crores, the shares of E-Land Apparel Limited opened in the green and hit a 10 percent upper circuit at Rs. 12 on BSE, as compared to its previous closing price of Rs. 10.91.

The stock delivered positive returns of nearly 16.3 percent in one year, while around 3 percent returns in the last one month.

What’s the news

The fluctuations in the share prices were observed after E-Land Apparel Limited announced the financial results for Q3 FY25, through the recent filings with the BSE.

For Q3 FY25, E-Land Apparel reported revenue from operations of Rs. 67.3 crores, registering a significant growth of around 51.6 percent QoQ from Rs. 44.4 crores in Q2 FY25, and a rise of about 76 percent YoY from Rs. 38.3 crores in Q3 FY24.

The company’s net profit for Q3 FY25 to Rs. 3.12 crores, representing a growth from a loss of Rs. 0.33 crores in Q2 FY25, as well as from a loss of Rs. 14.2 crores in Q3 FY24.

Also read: ₹1,234 Cr Orders: BlackRock held stock jumps after receiving orders for solar PV modules

Capacity Expansion

E-Land Apparel Limited has an existing capacity of 162,500 units for U4, with a utilization of 1.5 lakh units, and an existing capacity of 2.25 lakh units for U5, with a utilization of 2 lakh units.

The company proposes to increase its capacity by an additional 80,000 to 1 lakh Units (Pes.) per month, requiring an investment of approximately Rs. 30 crores. The funding for this expansion will consist of operational funds and a cash credit limit of up to Rs. 10 crores from the bank.

The additional capacity is expected to be added by the end of March 2025, with operations for the new capacity commencing in the first week of March 2025, subject to all necessary approvals, consents, permissions, and/or sanctions, if applicable. 

According to the company, this investment is crucial for enhancing operational capacity to meet growing demand, accommodate larger contracts, and drive revenue growth. The proposed expansion will significantly increase the production capacity, reaching 1 lakh units (Pes.) per month.

About the Company

Incorporated in 1997, E-Land Apparel Limited is primarily engaged in the business of manufacturing and sale of garments, serving both domestic and international markets. 

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Penny stock hits 10% upper circuit after reporting 76% revenue growth & capacity expansion appeared first on Trade Brains.