Extending their winning streak for the third consecutive trading session, shares of Bombay Dyeing & Manufacturing, the flagship company of Wadia Group, registered a new 52-week high of ₹111.4 apiece during Tuesday's trade.
The company's shares witnessed an unprecedented rally from their March 2023 low of ₹53.25 to trade at the current market price of ₹109, delivering a staggering return of 105%.
After experiencing a consistent decline from May 2022 to March 2023, resulting in a 46% loss in value, the stock staged a remarkable recovery. In April 2023 alone, it surged by 62.47%, effectively covering the entire 11-month downfall.
The Bombay Dyeing and Manufacturing Company Limited, established on August 23, 1879, is engaged primarily in the business of real estate development, polyester staple fibre, and retail.
The Wadia Group, started in 1736, is among India's oldest conglomerates. It has a diverse portfolio spanning various industries such as FMCG, real estate, textiles, chemicals, and food processing. The group has a long-standing presence and significant expertise in these sectors.
The other group companies in the Wadia Group are listed on Indian stock exchanges, including Britannia Industries (a 102-year-old company in FMCG that is part of the Nifty 50 index), Bombay Burmah (a 150-year-old company in tea and other businesses), and NPL (a manufacturer of hydrogen peroxide).
In October last year, the Securities and Exchange Board of India (SEBI) issued an order imposing a two-year ban on Bombay Dyeing & Manufacturing Company Limited and its promoters, Nusli N Wadia, Ness Wadia, and Jehangir Wadia, from the capital market.
The order also imposed a fine of ₹15.75 crore on them for being involved in a fraudulent scheme of misrepresenting the company's financial statements.
In the subsequent month, Bombay Dyeing and its promoters obtained relief from the Securities and Appellate Tribunal (SAT) against SEBI's order.
In the fourth quarter of FY23, the company posted a significant increase in losses, with a net loss of ₹246.1 crore compared to ₹41.74 crore in the same period last year. However, its revenues grew by 12% YoY to ₹670.17 crore.
The company's other income also saw a substantial increase of nearly 50% to ₹20.58 crore. However, the total operating expenses surged by 45% to ₹766 crore, impacting the company's bottom line margins. Overall, for FY23, the company reported a total loss of ₹517 crore, with total operating expenses increasing to ₹2,708 crore from ₹1,850 crore in FY22.
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