Cantabil Retail, which is into designing, manufacturing, branding and retailing of apparels, has seen a stupendous rally in the last 10-year period, rising as much as 4,000%.
Accordingly, if an investor had invested Rs 10,000 in the stock ten years ago and stayed put, the investment would have jumped to 4 lakh, according to an analysis by ET Markets.
However, the stock offered negligible returns of -1% for the past one year. In the last six months, the shares rose just 3%.
Cantabil Retail is in the business of designing, manufacturing, branding and retailing of apparels under the brand name of Cantabil. The company has a network of over 500 exclusive retail outlets and employee strength of more than 3700-plus spread across India.
It started garments manufacturing and retailing business in 2000 and opened its first Cantabil store in September 2000 in New Delhi.
According to the shareholding pattern available with the exchanges, the company is majority-owned by promoters at 73.28%, while public shareholders own the rest at 26.7%.
Among the public shareholders, foreign investors have a stake of 4.46%, but mutual funds have zero stake.
In the recent March 2024 quarter, revenue from operations grew 12% to Rs 194 crore. EBITDA for the same period increased marginally to Rs 43.9 crore. PAT for Q4FY24 came in at Rs 18.3 crore as compared to Rs 17 crore in Q4FY23.
Technical outlook - What should investors do?
Technically, the stock is trading significantly below its 200-day moving average (223) on the daily chart and has good support levels at Rs 190 and Rs 180.
"Additionally, the momentum indicator RSI is positively poised, suggesting a potential pullback rally. Therefore, one can consider holding the stock with a stop-loss order at Rs 198. On the upside, the stock could reach Rs 223, which is the 200-day moving average line, with further potential gains up to Rs 240," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.
With data inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
