Sai Silks Kalamandir Plunges 12% After Dismal Q3 Update

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AuthorIshaan Verma|Published at:
Sai Silks Kalamandir Plunges 12% After Dismal Q3 Update
Overview

Sai Silks Kalamandir shares dropped over 12% on Monday, leading losses on the BSE Smallcap index after a weak Q3 business update. The company reported an 8% year-on-year turnover decline for the quarter, though year-to-date revenue grew 16%. The stock is now down 40% from its IPO price.

Financial Update Causes Stock Plunge

Sai Silks Kalamandir Ltd. shares sank more than 12% on Monday, leading declines on the BSE Smallcap index following a disappointing third-quarter business update. The company's stock experienced its largest single-day fall since its listing in September 2023.

Underwhelming Q3 Performance

In an exchange filing over the weekend, Sai Silks Kalamandir disclosed that its turnover for the December quarter stood at ₹411 crore. This figure represents an 8% decrease compared to the ₹449 crore reported during the same quarter last year. The drop in quarterly performance overshadowed the year-to-date financial growth.

Revenue Growth Continues Year-to-Date

Despite the quarterly dip, revenue for the first nine months of the fiscal year showed a healthy 16% year-on-year increase, reaching ₹1,235 crore from ₹1,063 crore in the corresponding period. The company also continued its expansion strategy, opening five new stores during the quarter, including one under the Kanchipuram Varamahalakshmi Silks format and four under the Valli Silks format.

Market Reaction and Volume Surge

Monday's sharp decline marked the third consecutive day of losses for the stock. Trading volumes surged significantly, with close to 62 lakh shares traded, the highest in three months. Notably, delivery volumes were also substantially higher than the 20-day average, indicating strong conviction among investors taking positions. The stock has now extended its drop to 40% from its issue price of ₹222 per share.

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