From ₹307 to ₹433: This stock surges over 40% in 3 sessions; here’s why

Shares of Cravatex have seen strong momentum in the last few sessions despite subdued trading in the broader market, as investors rushed to buy the stock after well-known investor Ashish Chugh bought an equity stake in the company. In the last two sessions, the stock jumped 30% after the Delhi-based investor purchased 15,000 equity shares, or 0.58% stake, in Cravatex at an average price of ₹326.71 per share on June 14.

Extending its gaining streak for the fifth straight session, Cravatex shares opened higher at ₹388.85 on Thursday, up 5.3% against the previous closing price of ₹369.20 on the BSE. During the session, the microcap stock hit its upper circuit limit of 20%, before settling at ₹433.25, up ₹17.35%. On the volume front, 70,000 shares changed hands over the counter on the BSE against a two-week average volume of 4,553 stocks. The market capitalisation stood at ₹111.96 crore at the end of day’s trade.   

In the last three sessions, Cravatex share price has climbed over 40%, while it has surged 43.5% in a week. In the last one year, the counter has delivered 22.5% return to its shareholders, while it has fallen 8.5% in the past six months. In one month, the stock has risen 42%. It touched a 52-week high of ₹543.80 on October 28, 2022, whereas it hit a 52-week low of ₹284.60 on March 27, 2023.

Incorporated in 1951, Cravatex is a global platform for retail, brand licensing, distribution & sourcing company with a presence across the Indian subcontinent, United Kingdom, Europe, North Africa, and the Middle East. The company, a part of the Mumbai based Batra Group, has the exclusive license for the Italian sportswear brand FILA, owns sportwear brand Proline, and represents other international brands.

In October last year, footwear retail chain Metro Brands signed a share purchase agreement to acquire 100% Cravatex Brands to expand its presence in the sports and athleisure space in India. Through this acquisition, Metro Brands will receive exclusive rights for Proline and for the sale and distribution rights of FILA across formats, including Exclusive Brand Stores, Multi Brand Stores, Airport Stores, Distribution, Online Marketplaces and Web stores, in India.

In the January-March quarter of 2023 (Q4FY23), Cravatex posted net profit of ₹0.09 crore against a loss of ₹32.36 crore in the December 2022 quarter (Q3FY23). For the full financial year 2022-23, the company posted a loss of ₹27.14 crore. The total revenue of the company stood at ₹1.2 crore versus ₹1.3 crore in the previous quarter. For FY23, the revenue was at ₹3.48 crore. 

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