 "This Vijay Kedia portfolio stock nears summit; zooms 14% in subdued market")
Shares of Siyaram Silk Mills hit an over six-year at Rs 788, as they zoomed 14 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market amid heavy volumes on expectations of strong earnings. The stock price of this smallcap company surpassed its previous high of Rs 743.05 touched on November 8, 2024. It was trading at its highest level since December 2017. It had hit a record high of Rs 799 on December 11, 2017.
In comparison, the BSE Sensex was down 0.2 per cent at 79,949 at 01:58 pm. The average trading volumes at the counter jumped over three-fold. A combined 1.8 million equity shares changed hands on the NSE and BSE.
Investor Vijay Kishanlal Kedia held 455,000 shares representing 1 per cent stake in Siyaram Silk Mills at the end of September 30, 2024, the shareholding pattern data shows.
Siyaram Silk Mills is amongst India’s most renowned brands and marketers of fabrics, readymade garments, and other textiles products. The company is famous for its high-quality fabrics and apparels using various blends made from poly viscose, cotton, wool, linen, bamboo and stretch.
In addition, the company operates and franchises a chain of retail stores, which offer menswear fashion fabrics, apparel, and accessories. The company sells its products under multiple brands that enjoy high recall value with consumers. They include brand names such as Siyaram, J. Hampstead, Oxemberg, and Cadini.
In the past one month, the stock price of Siyaram Silk Mills has outperformed the market by surging 51 per cent after the company reported improvement in financial performance for the quarter ended September 2024 (Q2FY25), with revenue from operations at Rs 607 crore, compared to Rs 585 crore in Q2FY24. Profit after tax jumped 11 per cent to Rs 68 crore over the previous year quarter. Earnings before interest, tax, depreciation and amortization (ebitda) grew by 10 per cent at Rs 110 crore; margin improved 80bps to 17.5 per cent as compared to 16.7 per cent in Q2FY24.
In Q2 FY25, domestic demand gained momentum as we entered the festive season, supported by the destocking of supplier inventories and increased discretionary spending by consumers.
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To capitalize on the growing demand, the management said the company is expanding its footprint with approx. 30 new fast fashions and ethnic retail outlets by March 2025 of which 12 will be opened by December 2024. The fast fashion outlets, branded ZECODE, will feature the latest collections targeting urban shoppers seeking trendy, affordable apparel. The company’s ethnic clothing outlets, branded DEVO, will showcase an extensive range of clothing that caters to the country’s rich cultural heritage and style preferences, the management said.
Looking ahead, the management is confident that the remainder of the fiscal year will be strong, driven by increasing consumer demand and favourable market conditions, setting the stage for continued growth and success.
Meanwhile, Siyaram Silk Mills has solidified its brand presence in both domestic and global markets. The brand ‘Siyaram’ is synonymous with excellent craftsmanship, earning a reputation in the industry for its remarkable growth, steadfast reliability, and unparalleled fabric quality, which have been pivotal in its global success.
With its array of influential brands spanning the entire target group for menswear, the company is uniquely positioned to provide versatile and timeless styles suitable for every occasion. Despite facing fierce competition in the industry, it sustains its success through judicious fiscal management, unwavering commitment to crafting superior-quality products and delivering sustainable value to its diverse stakeholders.