Market Performance
Aarvee Denims and Exports' share price surged 5% upper circuit in Thursday's trading session, reaching ₹138.98 per share. The stock has delivered an astonishing 525% return in just one year, making it one of the top-performing small-cap multibaggers.
Key Announcement: Company Becomes Debt-Free
The rally followed the company's major announcement that it has fully repaid all outstanding bank loans as of June 3, 2025, achieving a debt-free status.
Why This Matters?
- Zero bank debt eliminates interest costs, boosting profitability.
- Enhances financial flexibility for future investments.
- Strengthens the company's ability to pursue growth and innovation.
- Positions Aarvee Denims for market expansion and long-term stability.
The company stated, "This milestone reflects our strong financial discipline and commitment to operational excellence."
Financial Snapshot: Q4 & Annual Performance (FY2025)
Quarterly Results (Q4 FY2025)
- Revenue: ₹7.50 Crore (↓68.75% YoY)
- Net Loss: ₹8.87 Crore (vs. ₹6.46 Crore loss in Q4 FY2024)
Annual Results (FY2025)
- Revenue: ₹42.45 Crore (↓49.90% YoY)
- Net Profit: ₹18.54 Crore (vs. ₹44.62 Crore loss in FY2024)
What's Next for Aarvee Denims?
With a debt-free balance sheet, the company is now better positioned to:
- Invest in new opportunities
- Expand market reach
- Enhance product innovation
This development could play a crucial role in improving future financial performance.
Summary
- Stock jumps 5% to its upper circuit, continuing its 525% year-to-date rally.
- Debt-free status achieved after full loan repayment.
- FY2025 net profit at ₹18.54 Crore, a significant turnaround from last year's loss.
Investors are closely watching Aarvee Denims as it enters a new growth phase with a stronger financial foundation.
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