This apparel and textile company’s shares hit upper circuit of 20% - know what’s driving the stock

Amid an eight-fold jump in the second-quarter profit, the shares of Monte Carlo Fashions hit an upper circuit of 20 per cent upper circuit to Rs 523.05 per share, moreover, It has a new 52-week high on the BSE intraday trade on Thursday. 

The manufacturing and trading textile garments company reported a robust set of earnings during the July-September quarter for the financial year 2021-22. In this, the company's net profit grew to Rs 33.91 crore in Q2FY22 as compared to Rs 4.43 crore in the same quarter a year-ago period. 

See Zee Business Live TV Streaming Below:

Similarly, the company’s revenue surged more than doubled to Rs 238 crore in Q2 this fiscal from Rs 98.25 crore in a year-ago quarter. While its EBITDA margin improved 686 basis points to 22.1 per cent from 15.2 per cent in the previous quarter of FY21. 

Monte Carlo has recorded strong volume growth during the quarter, mainly on the back of unlocking theme as the reduction in the COVID 19 cases were seen. Besides, lockdown restrictions were also revoked in the majority of the country and globe. 

Monte Carlo is a leading branded apparel company with a comprehensive range of woolens, cotton, cotton blended, knitted, and woven apparel for men, women, and kids. 

It has strengthened its retail presence in India with the opening of 12 new EBO’s during the quarter and has achieved a milestone of 300 EBO’s across 20 states and 4 union territories in India, as per the results filing on the exchanges.  

During the mid-market, a combined 679,000 shares changed hands, besides there were pending buy orders for 118,000 shares on the NSE and the BSE. In comparison, the BSE Sensex is trading negative, down 0.91 per cent. The stock had touched an all-time high of Rs 664 per share on January 10, 2018.