Making a U-turn

Kitex Garments promoter Sabu Jacob offloads 16,800 shares and buys back the same quantity in under a week

Until 2016, Kerala-based Kitex Garments was an investor darling and a success story from God’s own country. The textiles company which currently has a market cap of Rs 8.28 billion once enjoyed a market cap 6x higher. Between FY06 and FY16, the company’s standalone net profit grew from Rs.40 million to Rs.1.12 billion. Gross sales also soared from Rs.1.05 billion to Rs 4.99 billion. Adding to investors’ delight, in 2016, the company claimed ROCE of 41% and Ebidta margin of 38%. On the back of strong revenue and profit, the company’s stock scaled new heights, zooming 40x between FY11 and FY16.