Textile stock under ₹70 in focus after board approves CAPEX plans worth over ₹24 Cr

The shares of a Microcap Textile Company that is primarily engaged in manufacturing of Terry Towels, Bath Mats and other Textile Products are in focus after the Board of Directors of the company approved an expansion plan worth Rs 24.5 Crores. 

Price Action 

The shares of Riba Textiles Ltd, with a total market capitalization of Rs 63.32 Crores, reached an intraday high of Rs 66.4 per share gaining around 3.3 percent on Monday. As of 11:00 am, the shares retreated and were trading at Rs 65.6 per share which was 2.07 percent higher than the previous closing price of Rs 64.27. 

The shares of Riba Textiles Ltd generated a return of 51.5 percent in the past three years and a return of 42.6 percent in the past five years. 

What Happened 

As per a press release dated February 28, 2025,  the Board of Directors of Riba Textiles Ltd has evaluated and approved a detailed expansion plan at the existing unit situated at a Village in Sonepat District, Haryana. The expansion will be executed by adding 12 Air jet looms with other Allied machineries & Bathmat Tufting line for the manufacturing of Towels and Bathmats. 

The existing capacity of the company is 6700 (MTPA) of which existing capacity utilization is 5270 (MTPA). The proposed capacity addition is 1500 (MTPA) and the period within which the proposed capacity is to be added is September 2025, with a total investment of Rs 24.50 Crores. 

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Financials

The company reported a growth of 34.3 percent YoY in Revenue from Operations from Rs 56.35 Crores in Q3FY24 to Rs 75.69 Crores in Q3FY25. Their Net Profits increased by 10.8 percent YoY from Rs 1.85 Crores to Rs 2.05 Crores over the same period. 

Textile Industry 

India’s textiles industry is one of the oldest sectors in the Indian economy, with a history spanning several centuries. The market for Indian textiles and apparel is expected to grow at a CAGR of 10 percent, reaching US$ 350 billion by 2030. Additionally, India is the world’s third-largest exporter of textiles and apparel and ranks among the top five global exporters in various textile categories, with exports projected to reach US$ 100 billion.

About Riba Textiles Ltd 

The company is engaged in manufacturing Terry Towels, Bath Mats and other Textile Products.  It serves various customers like departmental stores, mass merchandisers, e-commerce sellers, and importers across the globe in 30 countries. Their production unit covers 16 acres of land with a built up area of 300,000 square feet.

Written By Adhvaitha Nayani

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