Shares of cotton yarn manufacturer RSWM Ltd (Rajasthan Spinning & Weaving Mills) have delivered multibagger returns to its shareholders in the last one year, driven by healthy long term growth and robust financial performance. This Dolly Khanna portfolio stock has surged from ₹159 per share on January 19, 2021, to ₹523 intraday today, delivering 225% return to its shareholders. Meanwhile, the benchmark index BSE Sensex gained 21.5% during this period.
Chennai-based large investor Dolly Khanna is known for her lesser-known picks and publicly holds 18 stocks with a net worth of over ₹391.4 crore. She owns 2.9 lakh shares, or a 1.23% stake, in RSWM, according to the December quarter holding pattern on the BSE. In the last quarter, Khanna raised her stake in this multibagger stock by 0.11%, as per the latest shareholding pattern available on the exchange. At the current market price, the value of Khanna’s stake in the company is estimated to be ₹15.2 crore.
An investment of ₹1 lakh in RSWM, a flagship company of the LNJ Bhilwara Group, on January 19, 2021, would have grown to around ₹3.3 lakh in just one year. It is one of the leading textile manufacturers in the country, producing yarns such as synthetic, blended, melange, cotton, specialty yarns and value-added suiting and denim fabrics.
On Wednesday, RSWM shares gained as much as 4% to hit an intraday high of ₹523.4 on the BSE, in an otherwise weak broader market. The market capitalisation of the company stood at ₹1,212.40 crore at the time of reporting.
The smallcap stock opened higher today at ₹509.30, against the previous close price of ₹503.15. The stock was trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
RSWM shares had hit a 52-week high of ₹546 in the previous session after the company released latest shareholding which showed that Dolly Khanna raised her stake in the company by 0.11% during December quarter of 2021. The stock had touched a 52-week low of ₹149.70 on February 9, 2021.
The textile share has climbed 42% in six months, 14% in the last one month, and 1% over the past one week. In the long-term, the stock has given returns of nearly 123% over the last three years, 14% in 5 years, and 550% in the 10-year period.
On the financial front, RSWM has delivered positive results for the last four consecutive quarters. For the first half of the current fiscal, the company recorded 120% growth in revenue to ₹1,695 crore in comparison to ₹769 crore in the corresponding period H1 FY21. Profit after tax stood at ₹81.66 crore as against a loss of ₹83 crore in the same period last year. During the September quarter, the company also unveiled a plan to enter knits business with an initial investment of ₹80 crore in the first phase.
For the financial year ended March 31, 2021, the company posted a total income of ₹2,365.43 crore as compared to ₹2,797.22 crore during the 12 months period ended March, 2020. It has reported net profit of ₹20.83 crore as against net loss of ₹13.41 crore in the previous fiscal.