Shares of Himatsingka Seide appear weak today. Know why

Premium textiles maker Himatsingka Seide Ltd. bucked a weak overall trend in late afternoon trade on Monday after the company announced a fresh expansion to meet rising global demand.

Himatsingka Seide said it would invest more than 1,280 crore rupees over 3 years to boost its capacity at its unit in Hassan, Karnataka. The company will double its sheeting and spinning capacity and add new capacity for terry towels.

Himatsingka Seide rose 1.1 percent, or 2 rupees, to 183.95 rupees on the National Stock Exchange. The company has seen its market capitalisation jump 107 percent in the past one year to 1,810 crore rupees as investors sought the safety of predictable revenue and profit streams in a company with international brands.

Himatsingka is trading 2.1 times its book value of 85 rupees. Its sales have grown 14.8 percent compounded over 5 years and profit is up 22 percent over the same period.

Image credit: Indiatimes