A textile company may be an unlikely candidate to beat market returns, but the stock of Bombay Rayon Fashions has had a comparatively better run.

The company manufactures fabric and garments for the domestic and export markets, allowing it to make the most of opportunities in the global and burgeoning domestic markets.

Further, even while concerns over slowing developed economies loomed large, Bombay Rayon had used its large manufacturing capacities to its advantage during the previous slowdown.

Retailers and manufacturers overseas had looked to consolidate suppliers to lower costs.

Another factor aiding the stock was an open offer at Rs 300 for 2.84 crore (20 per cent) of the company's shares.

The open offer price was at a premium of 7.5 per cent to the market price at the time of announcement.

The open offer was initially meant to close by June 18 this year. It, however, faced delays, with offer eventually closing on November 23.

Revenues have been steadily growing over the past two years. The company has kept up revenue growth in the current fiscal too, growing 21 per cent in the first six months.

However, rising interest costs emerged a damper on profits spiralling 45 per cent for the half-year ending September. Net profits, as a result, declined by three per cent.

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