Bombay Dyeing jumps up almost 6.5%

Two back-to-back good news from Bombay Dyeing has led to the spurt in its stock price. The scrip today rose almost 6.5% to Rs.51.90 and continues to remain firmly in the green.

The first news came in on 1st Jan when it said that it had sold off Land & Building and some specific utility machineries of Ranjangaon unit situated at Ranjangaon,  Maharashtra, at an aggregate value of Rs.174.45 crore. It also sold off its apartment at Beach Towers at Prabhadevi, Mumbai, for Rs.9.4 crore.

Today’s news is that the company, which lately has become more of a realty than a textile company announced that it is planning to revive its textile retail business and is sure of a turnaround in FY18.

Under this ‘revival strategy’, the company plans to outsource manufacturing and till 2020 will invest Rs.100 crore in brand, raise its multibrand outlets to 10,000, double its franchise stores to 500 and bring in more products every year. With these steps, the company is confident that its retail segment revenue will treble to Rs.1000 crore by 2020, which is huge given the Rs.305 crore revenue it had for FY16.