Business · India Bureau
Kitex Garments surges on return to profitability in second quarter
Shares of the apparel manufacturer jumped over 17 per cent following the company's swing to net profit in Q2, though the stock remains significantly below its February peak.
LSN India ·
Kitex Garments Limited saw its stock price climb sharply on Tuesday after the company returned to profitability in the second quarter of the fiscal year. The apparel manufacturer's shares gained more than 17 per cent during intraday trading, reflecting investor optimism over the improved financial performance.
The gains mark a recovery for a stock that has faced considerable headwinds in recent months. Despite the latest rise, Kitex Garments continues to trade substantially below its 52-week high of ₹231.15, which was recorded in February. Current levels represent a decline of approximately 41 per cent from that peak, underscoring the challenges the company has navigated through the year.
The shift to profitability in Q2 signals a potential turning point for the company after a period of losses. Analysts attribute the recovery to improved operational efficiency and market conditions favoring apparel manufacturers in the region. The move back to black has reignited investor interest in the mid-cap garment maker, which supplies to international brands and retailers.
Investors will be watching closely for further quarterly results to assess whether the company can sustain this momentum and continue its recovery trajectory throughout the remainder of the financial year.