Axita Cotton hit upper circuit as Board to consider share buyback proposal on May 23

Mumbai (Maharashtra) [India]: During Friday’s opening session on Dalat Street, shares of Axita Cotton reached the upper circuit limit on strong buying demand. The shares of Axita Cotton opened on the BSE at Rs 27.01 apiece and on strong volumes locked in upper circuit level of Rs 27.30 marking an upside gap of 5.00% from the previous close of Rs 26.00. Following the company’s announcement that the Board of Directors of the Company would meet on May 23, 2023, to discuss a repurchase proposal, the stock price has experienced an upward trend. 

The Board of Directors of the Axita Cotton is scheduled to be held on Tuesday, May 23, 2023, to consider and approve the proposal for share buyback of fully paid-up equity shares of the company.

The company has reported a total income of Rs.128.6625 crores during the quarter ended March 31, 2023 as compared to Rs.291.5867 crores during the quarter ended March 31, 2022, representing a fall of 55.88% YoY. During Q4FY23, the company reported a net profit of Rs 5.59 Cr down by 11.43% YoY from Rs 6.31 Cr in Q4FY22. During the quarter under review, the EPS of Axita Cotton dropped by 12.50% to Rs 0.28 from Rs 0.32 recorded in the year-ago quarter.

The firm recorded a total income of Rs. 557.61 crores for the fiscal year that ended on March 31, 2023, down from Rs. 830.46 crores for the fiscal year that ended on March 31, 2022, a drop of 32.85% year on year. The net profit of the company stood at Rs 17.03 Cr in FY23 up by 10.53% YoY from Rs 15.41 Cr in FY22 and its EPS surged by 11.54% from Rs 0.78 to Rs 0.87. 

The stock has reached a resistance level at the current market price and is trading below its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMA). Axita Cotton made a 52-week-high of Rs 83.00 on (28-Apr-2023) and a 52-week-low of Rs 17.01 on (21-June-2022). During Q4FY23, the company’s promoters shareholding was 69.65%, FIIs stake was 12.45% and DIIs stake was 17.90%. Axita Cotton Limited is a multinational organic textile firm headquartered in India. Cotton bale manufacturing, trading, and processing are all operations in which the company is involved. 

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