The Textile company with a competitive edge to look out for !!

Prior to the Bonus Shares announcement Alstone Textiles has been continuously making new 52 weeks high and had closed at ₹203+ on 8th November.

The counter has been in an euphoria among investors on the back of the announcement of the split of its equity shares and issue of the bonus shares. Alstone Textiles has announced a huge 1:9 Bonus for its shareholders, followed by a 1:10 Split. This means an eligible investor would get 10 equity shares with a face value of Re 1/- each of the company for every one share with a face value of Rs 10/- held by them, and the cherry on top will be 9 Bonus share of face value Rs. 1/- on each share after the split.

The suspected reason behind the bonus seems to be the outstanding quarterly results of the company, clocking Rs. 8cr in the recent quarter. The company’s next quarter is also expected to be as good as its current quarter.

Alstone Textiles is indulged in procurement, processing and Distribution of pre-processed textiles. The company aims for clients in the fast-moving fashion industry who deal in bulk. Alstone Textiles also exports pre-processed textile to European and American countries. In the last 25 trading days, the company's stock has consistently reached a 5-percent upper circuit. As a result, this company gave a multibagger return of 200 percent to its investors in just 1 month. On August 24, 2022, Alstone Textiles was first listed on the Bombay stock exchange. The price of its shares was barely Rs 15.75 at the time. Since then, its shares have provided investors with returns of over tenfold in the past ten weeks.

The record date is expected to be in between 3rd to 5th December. Investors holding shares of Alstone Textiles till the record date will be eligible for the split and bonus shares. The three-digit price of the shares will reduce to a single digit after the split making it affordable for small time investors as well.

India is the oldest Textile producer and exporter in the world, which gives all the Indian Textile companies a competitive edge over others. The government policies are also favourable for all types of textile business in India which makes this sector highly profitable.

Moneycontrol journalists were not involved in the creation of the article.