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Kitex Garments has surged 19% to Rs 486 ahead of its board meeting today to review the performance of the company.
The stock opened at Rs 437 and touched a record high of Rs 489 on National Stock Exchange (NSE). The trading volumes on the counter more than doubled with a combined 1.1 million shares changed hands till noon deals on NSE and BSE.
The stock opened at Rs 437 and touched a record high of Rs 489 on National Stock Exchange (NSE). The trading volumes on the counter more than doubled with a combined 1.1 million shares changed hands till noon deals on NSE and BSE.
“The board of directors of the company will meet on September 22, 2014 to review the performance of the company, appoint internal auditors, secretarial auditors etc for the financial year 2014-15”, Kitex Garments said in a regulatory filing.
On August 7, the company said ICRA, the credit rating agency, had upgraded the long term rating for Rs 167 crore bank facilities from ICRA A minus to ICRA A Plus and that of short term rating from ICRA A two plus to ICRA A one with a comment that the outlook on the long term rating is stable. Since then, the stock rallied 80% from Rs 270, compared to 5.6% rise in benchmark CNX Nifty.
Meanwhile, broker Motilal Oswal starts with a "buy" rating and a target of Rs 651.
Motilal Oswal says Kitex has a "strong presence" in infant wear, where competitors have struggled due to "stringent" safety norms. It also notes the company's plans to diversify towards higher margin clients, the Reuters report suggests.
The company is the third largest manufacturer of clothes for infants and caters to the biggest international buyers such as Gerber, Jockey, Carters, Kohls and The Childrens Place.
