Anil Kumar Goel Portfolio: Textile Stock Likely To Declare Stock Split After 3:1 Bonus Issue

Sportking India Ltd. was founded in 1989 and has since grown to become one of the country's top textile companies. It has three cutting-edge manufacturing facilities in India that are outfitted with the newest technology and produce yarns of the finest quality. The firm meets the needs of the knitting and weaving industries in both local and foreign markets by producing a wide variety of grey and coloured textile yarns. Sportking India Ltd., a global brand with over 30 nations under its belt, is dedicated to providing top-notch products for its customer base.

On Friday, the shares of Sportking India closed higher at Rs 933.25 apiece after the company declared that the Board of Directors are scheduled to meet soon to discuss and approve stock split.

"Pursuant to above referred Regulation, we wish to inform you that a meeting of the Board of Directors of Company is scheduled to be held on Saturday, 20th July, 2024 to inter alia: 1. To consider and approve the Unaudited Financial Results of the Company for the quarter ended 30th June, 2024. 2. To consider and approve the proposal to Sub-Division/Split of the Equity Shares of the Company in such manner as may be determined by the Board of Directors and subject to approval of the Shareholders and such authorities as may be required under Section 61 of the Companies Act, 2013. 3. Any other business with the permission of chair," said the company in a stock exchange filing.

The firm reported that its revenue from operations for the quarter and financial year ending March 31, 2024, was Rs. 611.7 Crs. This is a spike of 2.1% QoQ and 14.5% Y-o-Y. EBITDA jumped by 20.4% YoY and 38.0% Q-o-Q to Rs. 67.1 Crs in Q4 FY24. The quarter's EBITDA margin improved by 286 basis points sequentially and 54 bps annually to 11%. The quarter's net profit was Rs. 44.7 Crs, growing by 24.5% QoQ and remaining steady year on year.

Commenting on the growth outlook of the company, Munish Avasthi, Chairman & Managing Director said, " Our operations remain at full scale, and with quarterly trend of major expense heads intact - we foresee the current performance to be replicable in the near future. We remain hopeful of the trend of margin recovery to continue going forward. Regular efforts are being undertaken to explore and assess viability of capacity expansion and portfolio expansion of our current yarn offerings. We firmly believe that there is enough impetus for growth in our sector and we will continue to capitalize on the same. Our outlook for the upcoming financial year remains positive driven by favorable realizations, pickup in demand of export market and policy support from the regulators."

Sportking India is among the portfolio stocks of Anil Kumar Goel, in which the ace investor held a 2.89% stake representing 3,67,000 fully paid-up equity shares of the company during the quarter ended June 2024 or Q1FY25. The company had earlier declared bonus shares in a 3:1 ratio for which 24th September 2021 was the record date.