Kitex Garments shares hit upper circuit of 20%, new life high as the company announces this massive investment in Telangana

On the back of investment plans in Telangana, Kitex Garments’ shares hit an upper circuit of Rs 168.65 per share and touched a new 52-week high on the BSE today amid heavy volumes. 

Kitex Garments, one of the world's leading infant apparel manufacturers, has announced that the company would invest Rs 1,000 crore in Telangana. The scrip has zoomed nearly 54 per cent in the last three days post the investment announcement.

Telangana Minister of Industry and Commerce KT Rama Rao in a tweet on Friday said, “Delighted to announce the entry of KITEX group, world’s 2nd largest manufacturer of kids apparels into Telangana with an initial investment of ₹1,000 Cr.”

“They’ve chosen KMTP, Warangal for their factories. My gratitude to Mr. Sabu M. Jacob, MD of KITEX group on a quick decision,” the minister further said in a tweet.

Kitex Garments reported a 47 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 54.27 crore due to lower operating income for the financial year 2020-21 (FY21). The company’s revenue from operations was down 38 per cent at Rs 455 crore as against Rs 739 crore in the corresponding quarter of the previous fiscal. 

Kitex Garments is in the business of manufacturing and exporting garments. The company manufactures different types of garments such as hosiers' shirts, pants, jackets, innerwear and outerwear. The company also exports infant and children's wear and jackets to the United States.

The trading volumes on the counter more-than-doubled, with a combined 5.8 million equity shares having changed hands on the NSE and BSE so far.