This textile stock has a license to sell Disney and Marvel products; do you own it?

The stock jumped 12% on the day.

On October 7, Himatsingka Seide Ltd is among the Top Winners. Shares of the company jumped 12% and closed at Rs 107.6. The stock opened at Rs 95.85 and made an intraday high and low of Rs 109.9 and Rs 95.8, respectively.

Himatsingka Seide Ltd is a global textile company that designs, develops, manufactures and sells a wide range of home textile products. It has some of the largest installed capacities in the world for the production of fine cotton yarn, drapery and upholstery fabrics, as well as bedding and bath products.

The company holds exclusive licensing rights to over 12 international brands such as Calvin Klein, Tommy Hilfiger, Kate Spade, Royal Velvet, Barbara Berry and Waverly.

To increase its presence in the European region, it has also entered into a license agreement with the Walt Disney Company to manufacture and distribute a wide range of home textile products inspired by the archives and characters of all its franchisees, including Disney, Marvel, Pixar, and Lucas.

Sales and net profit for FY22 on a combined basis were Rs 3198 crore and Rs 141 crore, respectively. The Company’s ROE and ROCE at the end of the FY22 period are 10.2% and 9.47%, respectively.

For the last quarter of June, on a consolidated basis, the company generated revenue of Rs 638 crore and a net loss of Rs 55 crore.

Regarding the shareholding structure, 47.57% of the shares of the company are held by the promoters, 3.15% by FIIs, 9.53% by DIIs and the remaining 39.75% by non-institutional investors.

The company has a market capitalization of Rs 1013 crore and is currently trading at a PE multiple of 35.6x. The stock has a 52-week high and low of Rs 312 and Rs 87.3, respectively.