Mittal Life Style Limited, a prominent textile manufacturer specializing in denim, experienced a significant boost in its stock value during Tuesday’s trading session. Shares of the company, which boasts a market capitalization of ₹107.87 crore, climbed by 3%, reaching a high of ₹2.62 compared to the previous closing price of ₹2.43. This surge follows the announcement of a substantial new work order valued at approximately ₹5 crore.
The order originates from vendors associated with major fashion players Arvind Lifestyle Brands Limited and Myntra Designs Private Limited. Mittal Life Style is contracted to supply 2 lakh meters of denim fabric, with the potential for increased volume depending on vendor demand. This increased interest is attributed to positive consumer feedback regarding the unique characteristics of Mittal’s denim offerings. These include distinctive over-dyed fabrics with unique colourations, horizontal slub effects visible after washing, and intricate dobby designs, all of which contribute a fresh aesthetic and structural dimension to garments.
Mittal Life Style has established itself within the textile industry by focusing on the design, production, and supply of diverse fabrics, particularly denim. The company’s product portfolio caters to both domestic and international markets, supplying high-quality textiles widely used in apparel manufacturing. The company’s commitment to innovation and product differentiation is evident in its focus on creating fabrics with distinguishing features, such as the aforementioned over-dyed effects, slub patterns, and dobby weaves, setting them apart from conventional textiles.
Financial analysis reveals a potentially undervalued stock, indicated by a PEG ratio of 0.07. The company’s current assets exceed its current liabilities, and it has demonstrated an average 3-year net profit growth of 112.31%. While revenue experienced a slight dip of 9.17% in Q2FY24-25, decreasing from ₹21.48 crore to ₹19.51 crore, net profit saw a substantial increase from ₹0.09 crore to ₹0.44 crore during the same period. Key financial ratios include a Return on Equity (RoE) of 4.84%, a Return on Capital Employed (RoCE) of 5.99%, and a debt-to-equity ratio of 0.18. This latest order reinforces Mittal Life Style’s position within the denim market and its capacity to meet the demands of major fashion brands.
