Evince Textiles shares surge by 10% Tk14.62cr investment announcement

Evince Textiles Limited, a publicly listed firm, has decided to invest Tk14.62 crore in purchasing capital machinery to expand its denim fabric production, according to a disclosure published on the stock exchange's website. 

Following the investment disclosure, Evince Textiles' share price hit the upper limit with a 10% gain to Tk11 each on the Dhaka Stock Exchange (DSE) yesterday.

According to the disclosure, the textile firm will purchase a set of continuous denim dyeing sizing machines and a high-speed warping machine with standard accessories, originating from Taiwan.

The total cost, including freight charges, amounts to $1.2 million. Calculated at an exchange rate of Tk121.86 per US dollar on 30 August, this is equivalent to Tk14.62 crore, the disclosure read.

According to its unaudited financials, the company in the first nine months of the 2024-25 fiscal year reported a 17% decline in revenue to Tk249 crore and incurred a loss of Tk2.15 crore, with a loss per share of Tk0.12.

The firm attributed this production loss of about 25.30% in its Q3 report to several factors, including the scarcity of gas supply, political turmoil, worker unrest affecting the garment industry (its customers), and a banking crisis.

In the last FY24, it witnessed a significant jump in revenue with around 44% gain to Tk407 crore.

With the significant jumps in revenue, its net profit soared by 661% to Tk10 crore with an earnings per share (EPS) of Tk0.58. 

It had paid 2.5% cash dividend to its shareholders, and its shares are trading under the B category.

Evince Textile got listed on the stock exchange in 2016, and its paid-up capital is Tk18.37 crore divided by 18.37 crore shares.

The principal activities of the company is to manufacture 100% cotton yarn dyed woven fabrics. 

As of 31 July, out of its total shares, sponsor-directors held 32.94% stake, while institutional investors 13.90%, and general investors held 53.16% stake in the company.