 "Kitex Garments and Tribhovandas Bhimji Zaveri stocks soar, driven by booming profits and market demand, defying broader market trends.")
Shares of Kitex Garments and Tribhovandas Bhimji Zaveri have reached multi-year highs despite a generally weak Market. Kitex Garments saw its stock surge by 17 percent, hitting Rs 488.80, as strong demand and a significant profit increase boosted investor confidence. The company reported a more than doubling of net profit in the last quarter and is fully booked with factory orders until June 2025. Meanwhile, Tribhovandas Bhimji Zaveri’s shares rose by 17 percent, reflecting heavy trading volume and a positive outlook for the jewellery industry, especially after reduced customs duties on precious metals. Both companies are well-positioned for continued growth amid favorable Market conditions.
Title: Kitex Garments and TBZ Stocks Surge Amid Favorable Market Conditions
Last updated: September 9, 2024
In an interesting turn of events, shares of Kitex Garments (KGL) and Tribhovandas Bhimji Zaveri (TBZ) have hit multi-year highs, with KGL showing a remarkable rally of up to 17 percent on the Bombay Stock Exchange (BSE). This spike comes despite overall weak Market conditions, as seen with declines in the BSE Smallcap and Midcap indices, which were down 0.97 percent and 0.79 percent, respectively.
On Monday, KGL shares increased by 5 percent, reaching Rs 488.80, marking their highest level since April 2017. Over the last 16 trading days, the stock’s price surged 104 percent following a significant rise in quarterly profits, which more than doubled to Rs 29.95 crore compared to Rs 7.99 crore in the same quarter last year. The company attributed this success to strong overall demand, with total revenue rising by 32 percent to Rs 195.02 crore.
KGL’s chairman, Sabu M Jacob, recently announced that the company’s manufacturing capacity is currently fully utilized, with orders booked through June 2025. He expressed optimism about reaching record annual profits and turnover driven by robust demand in the global infant garment Market, which is projected to continue growing significantly.
Meanwhile, shares of TBZ also saw an impressive climb, soaring 17 percent to Rs 274.35, fueled by a two-fold spike in trading volumes. Over the past five weeks, TBZ has witnessed a whopping 102 percent increase in stock price, reaching levels not seen since December 2012. The jewelry company specializes in extensively handcrafted items, ranging from gold and diamond pieces to lightweight daily wear.
However, TBZ issued a clarification regarding the unusual price movements, indicating that the reasons behind the fluctuations were driven by Market conditions rather than any internal announcements or sensitive information. The company’s management remains optimistic for the jewelry sector, predicting growth in demand bolstered by a strengthening economy and evolving consumer behaviors.
The Indian gems and jewelry industry received a boost from the recent Union Budget, which aimed to reduce customs duties on precious metals. This strategic move is expected to contribute to domestic value addition in the sector and align with sustained demand.
As companies like KGL and TBZ navigate these favorable Market conditions, investors are keenly watching their progress and the overall health of the markets.
Tags: Kitex Garments, Tribhovandas Bhimji Zaveri, stock Market, investments, BSE, profits, jewelry industry
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What does it mean when stocks zoom over 100%?
It means that the price of those stocks has doubled or increased by more than 100% in a short time. -
Why are these stocks hitting multi-year highs?
These stocks are reaching their highest prices in several years due to strong performance, positive news, or investor interest. -
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Investing in fast-rising stocks can be risky. It’s important to do your research and consider whether the growth is sustainable. -
What are smallcap stocks?
Smallcap stocks are shares of companies with a small Market value, usually under a certain limit. They can be more volatile but offer growth potential. - How can I find out more about stock performance?
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