UPPER CIRCUIT! This footwear company share price witnesses SURGE over 50% in 5 sessions since its Q4 results announcement

Khadim India’s shares hit an upper circuit of 20 per cent to hit a new 52-week high to Rs 288.6 per share on the BSE intraday trade on Wednesday amid expectation on improved earnings. The stock has been surging since its Q4 results announcement. 

The stock has continued its upward movement since June 1, 2021, and trading at its highest level since September 2019. It has zoomed 51 per cent in the last one week, as compared to a 0.14 per cent rise in the BSE Sensex. The shares hit an all-time low of Rs 60.20 on March 20, 2020. 

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The company’s EBITDA and profit turned positive at Rs 14.09 crore and Rs 11.52 crore in the March-ended quarter of financial year 2020-2021. (Q4FY21) respectively, as against the losses reported in the same period a year ago. 

Moreover, the company’s revenue from operations grew 70.7 per cent year-on-year (YoY) to Rs 270 crore as against Rs 158 crore in the year-ago quarter. 

The company has the largest presence in East India, and in the quarter four, the company focused on reducing inventory in retail and distribution business while also clearing dues of debtors. The retail business saw a healthy growth during the quarter.  

The company is expected to get back to its growth trajectory provided there is no further lockdown, it said in the statement to exchanges. 

It also said, the distribution business continued its growth momentum, and the gross margins for Q4 improved substantially in both retail and distribution verticals. 

Khadim has also bagged an institutional order from the Education Department of Uttar Pradesh, worth Rs 128 crore for supply of school bags.