Siyaram Silk Mills Surges 14% to Hit 52-Week High, Gains 41% in November
Shares of Siyaram Silk Mills Ltd, the small-cap textile producer, rose over 14% on Tuesday, 26 November, following a climb to a 52-week high of ₹789 on the National Stock Exchange. Such a good rally had been seen in the stock; it has risen about 41% so far in November and might be sustained in the days to come. Here are the key highlights of Siyaram’s rally.
Intraday High: ₹ 789 on 26 Nov, up 14.67%
Closing Price: ₹782, up 13.6% in the day
1-month Performance: The stock has risen 47% during the month on strong buying interest
The recent rally, therefore, well reflects and reiterates investor confidence in the company’s fundamentals and growth story
About the company Siyaram Silk Mills
Siyaram Silk Mills is popularly known as Siyaram’s. It’s one of the leading manufacturers in fabrics, readymade garments, and home furnishing products. The portfolio of Siyaram’s includes:
Men’s Clothing: Premium fabrics and ready-made garments.
Textile Products: Yarns and home furnishings.
Siyaram’s has been a well-known name in the Indian textiles market for a long time. The company continues to innovate, expand on its offerings, and remain a household name.
Financial Performance: Q2 FY25
In the second quarter of FY25, ended September 2024, Siyaram’s has reported laudable financial results:
Net Profit ₹68.2 crore, up 11.3% YoY
Revenue from Operations ₹608 crore, up 3.7% YoY (as compared with ₹586 crore in Q2 FY24).
The consistent growth in profitability and revenue delivery by the company has largely driven the positive sentiment. Mutual Fund Holding
Corporate Actions
Interim Dividend:
Declared interim dividend ₹4 per share for FY25.
The dividend was accreted on November 14, 2024, for shareholders of record on November 6.
Bonus Preference Shares Scheme:
The Board of Siyaram sanctioned the scheme of arrangement that would issue bonus preference shares to the equity shareholders.
The arrangement would issue the bonus shares in two series—Series I and Series II.
Shareholder-friendly initiatives have culminated into great appeal for the stock among the long-term investors.
What’s Driving the Stock Rally?
Consistent Quarter-to-Quarter Growth: Consistent quarter-on-quarter growth in revenue and profit depicts a sound aversion to challenge by the textiles market.
Corporate Actions: Declaration of dividend along with bonus preference share issuance marks the confidence of the company on its financial health
This three-day rally of 18% is good to go, showed very robust buying interest and uptrend momentum.
Siyaram Silk Mills look forward to:
The stock’s strong upward momentum and recent financial performance suggest a bright outlook for Siyaram Silk Mills. Analysts expect continued growth in the textiles sector, driven by rising domestic demand and favorable market conditions. With its diverse product portfolio and shareholder-focused initiatives, Siyaram’s is well-positioned for further gains.
The latest performance of Siyaram Silk Mills can really be perceived as a sign of resilience and growth in India’s fairly competitive textiles market. The same was sparked by movement towards the 52-week high, stellar quarterly performance, and shareholder benefits. A very compelling player in the small-cap space, considering that the company continues to innovate and expand.
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