Alstone Textiles’ net profit rises to Rs 11.40 crore in third quarter

Alstone Textiles (India) has reported a net profit of Rs 11.40 crore in the third quarter. The company had reported a net loss of Rs .01 crore in a year-ago quarter.

In the first 6 months of the current fiscal, the revenue from operations stood at Rs 10.92 crore and net profit for the period was Rs 9.22 crore.

Alstone Textiles is a small-cap company with a market valuation of Rs 267.71 crore. The company operates in consumer discretionary goods and services (CDGS) sector. It deals in textiles such as cotton, woolen, art silk, natural silk, ready-to-wear apparel, hosiery, synthetic fibre and fabric and mixed fabrics.

The company said that it has plans to triple its textile exports to Europe and Asia. 

The company reported a 45 per cent jump in revenue from the previous quarter which makes a total 40 per cent jump in the quarterly profit from Rs 8 crores in the previous quarter to Rs 11.39 crores in the December 2022 quarter. 

The company was able to achieve this profit by ramping up the production 2 times than the previous quarter and establishing new units for processing cotton fabrics.

The company has also acquired multiple international clients that are generating a minimum 3 years retainable revenue.

A major point for the investors to notice is the book value of the share is Rs 10.5 whereas the share is trading around Rs 2 that is x0.20 times the book value, making this a very undervalued share. Its price to earnings ratio is 1.3. 

In the December 2022 quarter the company was able to maintain a healthy 13 per cent profit margin.

Shares of Alstone Textiles closed at Rs 2.10 apiece on BSE on Thursday, down by 4.98 per cent from the previous close of Rs 2.21.

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