Dolly Khanna Buys 1% Stake In This Small-Cap Textile Company

Renowned Chennai-based market investor Dolly Khanna has picked up a 1.06% stake in Super Sales India, which is involved in manufacturing yarn, gears and providing agency services.

Khanna bought the stake in the small-cap company during the June quarter of the current financial year, according to the latest shareholding pattern.

As of July 12, the market capitalisation of the company stood at Rs 577.4 crore. The shares of Super Sales India have risen 30.6% in the last six months and 79.5% in the last 12 months.

• Revenue up 14% to Rs 419.2 crore versus Rs 367.8 crore.

• Ebitda down 9.1% to Rs 42.1 crore versus Rs 46.4 crore.

• Margin narrowed 255 basis points to 10.1% versus 12.6%.

• Net profit down 30% to Rs 19.9 crore versus Rs 28.4 crore.

The textile market was slow in the last financial year but some customers who booked orders in earlier years have taken delivery of the machines because of the readiness of the infrastructures, which has helped the division to show better performance. This division reported a 11% growth at Rs 32.4 crore as compared to Rs 29.3 crore in fiscal 2023.

Import of fabric and yarn, change in the consumption pattern, mismatch in the raw material and selling prices, and increase in the cost of production have affected the margin of this division.

This division earned revenue of Rs 304.2 crore in fiscal 2024 as compared to Rs 260.6 crore in the previous fiscal. However, profit declined to Rs 0.4 crore as compared to Rs 2.06 crore.

Better offtake of the existing products by the original equipment manufacturers and the introduction of new products have helped the division to post a better performance. This division reported a revenue growth of 8.3% at Rs 90.9 crore.