Axita Cotton Surges to Upper Circuit as Board Plans Share Buyback Proposal on May 23                      

 23 May 2023, Mumbai: During the opening session on Dalat Street last Friday, there was a strong buying demand for shares of Axita Cotton, causing them to reach the upper circuit limit. The shares opened at Rs 27.01 apiece on the BSE and quickly reached the upper circuit level of Rs 27.30, which was a 5.00% increase from the previous day’s closing price of Rs 26.00. The stock price experienced an upward trend following the company’s announcement of a Board of Directors meeting on May 23, 2023, to discuss a share repurchase proposal.

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

During the quarter ended March 31, 2023, Axita Cotton reported a total income of Rs. 128.6625 crores, a significant decrease of 55.88% compared to Rs. 291.5867 crores in the same quarter of the previous year. The company’s net profit for Q4FY23 was Rs 5.59 Cr, representing an 11.43% decline from Rs 6.31 Cr in Q4FY22. Additionally, the earnings per share (EPS) of Axita Cotton dropped by 12.50% to Rs 0.28 from Rs 0.32 in the corresponding quarter of the previous year.

For the fiscal year that ended on March 31, 2023, Axita Cotton recorded a total income of Rs. 557.61 crores, a decrease of 32.85% compared to Rs. 830.46 crores in the previous fiscal year. However, the net profit of the company for FY23 was Rs 17.03 Cr, reflecting a 10.53% increase from Rs 15.41 Cr in FY22. Furthermore, the earnings per share (EPS) rose by 11.54% from Rs 0.78 to Rs 0.87.

Currently, the stock of Axita Cotton 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). On April 28, 2023, the stock reached its 52-week high at Rs 83.00, while its 52-week low was recorded on June 21, 2022, at Rs 17.01. During Q4FY23, the company’s promoter shareholding was 69.65%, while FIIs and DIIs held stakes of 12.45% and 17.90%, respectively. Axita Cotton Limited is an Indian multinational organic textile firm that is primarily engaged in cotton bale manufacturing, trading, and processing.