Shares of this textile company soar 44% in 2 days as Kacholia buys stake

Shares of Faze Three were locked in the upper circuit for the second straight day on Monday, up 20 per cent at Rs 272.55 on the BSE, also its fresh record high level. In the past two sessions, the stock has rallied 44 per cent after investor Ashish Kacholia bought nearly 3 per cent stake in the firm for Rs 13.87 crore.

On Friday, September 3, 2021, Ashish Rameshchandra Kacholia purchased 675,688 equity shares, representing a 2.78 per cent stake of Faze Three at a price of Rs 205.20 per share via bulk deal on BSE, the exchange data shows.

Ajay Anand, one of the promoters of the company, acquired 150,000 shares or 0.62 per cent stake in Faze Three via bulk deal, the data shows.

Meanwhile, individual investor Salem Pyarli Govani sold 1.05 million shares, representing 4.32 per cent of his stake in the company. As of June 31, 2021, Salem Pyarli Govani held 3.48 million or 14.29 per cent holding in Faze Three, the shareholding pattern shows. The names of the other buyers could not be ascertained immediately.

The stock hit a fresh record high today and has surged a whopping 78 per cent in past one month, as compared to a 7.3 per cent gain in the S&P BSE Sensex. In the past six months, the stock has zoomed 329 per cent against a 15.6 per cent rise in the benchmark index.

The stock has surged a whopping 78 per cent in the past one month, as compared to a 7.3 per cent gain in the S&P BSE Sensex.

In the past six months, it has soared 329 per cent as against a 15.6 per cent rise in the benchmark index.

Today, the trading volumes on the counter jumped 1.7 times with 256,000 shares having changed hands on the BSE so far. There were pending buy orders for 18,925 shares at 02:12 pm, the exchange data shows.

Currently, the stock is classified in the X category on the BSE. X group consists of all those stocks which are only listed on BSE and are settled on a trade-to-trade basis.

On August 18, 2021, Faze Three informed the stock exchange that CARE Ratings has upgraded the credit rating of the company on the long term bank facilities to ‘CARE A-’ (single-A minus) with a stable outlook for the facilities of Rs 87 crore. The short term rating has also been upgraded to ‘CARE A2+’ (A Two Plus), the company said.

The revision in the rating assigned to Faze Three factors is due to improvement in scale of operations despite weak April-June quarter (Q1FY21) (growth in revenue of 6.50 per cent over FY20). The PBILDT margins came in at 15.27 per cent in FY21 (PY: 12.68 per cent) resulting in better profit after tax for the company.

CARE believes that the company will continue to benefit from the demand shifting from China to India for textile products from American and European markets, which will result in improved visibility of sales in the coming years.

The ratings continue to derive strength from the company’s experience in manufacturing home furnishing products, integrated nature of operations, diversified product mix/customer base, growth in operations, improvement in PBILDT margins in over the years, comfortable capital structure and debt protection metrics, the rating agency said in rationale and key rating drivers.