 "Dollar Industries spurts 10%, hits 52-week high on heavy volumes")
Shares of Dollar Industries hit a 52-week high of Rs 544.05 as they spurt 10 per cent on the BSE in Wednesday's intraday trade amid heavy volumes, in an otherwise weak borader market.
At 02:12 PM, the stock of the garments & apparels makers was up 9 per cent to Rs 541.15 as compared to 0.3 per cent gain in the S&P BSE Sensex. In comparison, the S&P BSE Midcap and S&P BSE Smallcap index are down 1.1 per cent and 2 per cent, respectively.
Average trading volume on the counter jumped over 10-fold today with a combined 1.08 million equity shares, representing 1.9 per cent of total equity of Dollar Industries, having changed hands on the NSE and BSE. The stock had hit a record high of Rs 665 on January 20, 2022.
Dollar Industries is primarily engaged in manufacture and sale of hosiery products in knitted inner wears, casual wears, and thermal wears. The company has a substantial pan-India presence and has established its market abroad, in countries like UAE, Oman, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Nepal, and Sudan in the past few years.
In the October-December quarter (Q3FY24), the company's total income increased by 16.4 per cent year-on-year (Y-oY) to Rs 333 crore, while the total volume grew by around 30.4 per cent YoY. Net profit for the quarter grew significantly by 128.9 per cent Y-o-Y to Rs 17.7 crore.
The management said that raw material prices have stabilised and high-cost inventory is no longer within the system. This helped the company to improve its gross profit margin, which has increased by 375 basis point Y-o-Y to 33.9 per cent in Q3FY24.
A strong revenue outlook, coupled with stable raw material prices and strong push towards premiumisation, will help the company sustain and grow in margins. "The strong growth witnessed in Force NXT portfolio gives us the confidence that the premium segment will continue to play a vital role in achieving sustained revenue and profitability growth in the future," the management said.