Texmo Pipes in limelight

A small-cap company, Texmo Pipes, engaged in making PVC pipes and fittings, is in the limelight today morning. Usually, less than 8500 shares are traded on a 2-week average but today, 13,000 shares have changed hands. Market cap stands at Rs.38 crore.

The stock price rose over 8.5% to Rs.14.75, not too far from its 10% UC of the day at Rs.14.93.

The Board yesterday approved issue of 28.75 lakh equity shares to promoters, Sanjay Kumar Agrawal and Rashmi Devi Agarwal via preferential issue, at a price of Rs13.90/share.

Two promoters, to whom this allotment is being made held 27.63% stake before this preferential allotment and that will now go up to 34.76%.

Total promoter holding, pre-preferential was at 38.15% and now it will go up to 45.28%.

On the earnings front, for Q1FY21, on a 36% (YoY) decline in consolidated total income at Rs.82 crore, thanks to the 37% drop in total expenses, the company posted a 3% increase in net profit at Rs.1.33 crore.