Multibagger penny stock hits upper circuit after Mauritius-based fund buys stake

Shares of Filatex Fashion rose 5 per cent to hit the upper circuit on Friday after Eriska Investments Fund bought a stake in the textile products company on Thursday.

The Mauritius-based fund picked up 7 lakh shares of the BSE-listed company at an average price of Rs 9.17, amounting to Rs 64.2 lakh, the bulk deal data from the exchange showed.

The Hyderabad-based fashion company imported its machinery from South Korea and Italy for research and development (R&D) and is on an expansion spree and looking for both organic and inorganic growth opportunities, particularly in other developing countries, including the Indian subcontinent and Africa.

The stock hit an upper circuit on Friday at Rs 9.62. In the previous session, it zoomed 10 per cent, locked in the buyer's circuit, and ended the session at Rs 9.17 apiece on the BSE.

The BSE-listed penny scrip is a multibagger with a return of 233 per cent in the last year.

Filatex Fashions is a major supplier of socks to leading brands like Maxwell (VIP Group), Fila India, Adidas, Park Avenue, Tommy Hilfiger,
Metro and more. Other than serving the leading brands, the company has its own brand named 'Tuscany' and 'Smartman', which are getting good traction from consumers in India.

The company also supplies to e-commerce giants like Amazon, Flipkart, Snapdeal, and Shop clue, among others. It also caters to brands like Marks & Spencer, Hugo Boss, Giovanni, Primavera and many top labels of the European fashion world.