Mauritius-based FII buys stake in penny stock that has jumped 200% in a year

Mauritius-based foreign investment company Eriska Investment Fund has taken a stake in BSE-listed micro-cap company Filatex Fashions Ltd. details of the wholesale transaction are available on the BSE website, then FII purchased these shares at the price of 9.17 per share. This means that the Mauritius-based FII has invested 64.19 lakh in this penny stock.

After the news broke, shares of Filatex Fashions caught the attention of bulls, leading to higher volume in Thursday’s session. The stock hit the upper circuit of 10% on Thursday. However, the stock has given a huge return in recent years. Over the past month, this penny stock has risen by approximately 6.69 to 9.66 levels each, registering an increase of around 40% over this period. Over the past six months, this penny stock has jumped from 6.22 levels at 9.66 levels each, registering an appreciation of around 50% during this period. Over the past year, this micro-cap stock has gone from 2.90 to 9.66 per share, appreciating 225% over this period.

However, in June 2009, this stock was available at approximately 96 levels each and from there it crept into single digits and became a penny stock within the next year. In June 2010, the share price of Filatex Fashions Ltd fell below 10 and became one of the penny stocks in the Indian stock market. In 2015, it attempted to break out of the penny stocks group, but the bears continue to dominate the scrip and again pulled the stock to the single-digit price. Since then, it has been hovering in price in the single digits. In Thursday’s session, this certificate hit the upper 10% circuit and a new 52-week high as well.

Filatex Fashions is the leading supplier of socks in different sizes and designs for well-known companies and brands like Maxwell (VIP Group), Fila India, Adidas, Park Avenue, Tommy Hilfiger, Metro etc. Filatex also produced socks for licensees like Walt Disney, Warner Brothers, Planet, Mickey Mouse, Simpsons and 32 other licensees. Other brands include Bella, etc.

Filatex Fashions caters to all kinds of segments like kids, girls, school kids, official, premium quality and export quality, etc. The company is also a major supplier to e-commerce giants like Amazon, Flipkart, Snapdeal, Shop only provides quality products to the above brands, but also has its own brand “Tuscany”; “Smartman” which is getting good traction from consumers in India.

The company has also produced for other well-known brands like Mark & ​​(Spence), Hugo Boss, Giovanni, Primavera and many top brands in the European fashion world.

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James T. Quintero