Bombay Dyeing & Manufacturing Company Limited (BDMCL) shares flared up on the BSE on Thursday, hitting an intraday high of Rs 54.40 before closing at Rs 53.85, a gain of 5.80 percent. In the past four trading sessions this year, the stock has appreciated about 13 percent.
BDMCL is in the news for its revival plans that are expected to bring the loss-making company back in black in the next few years.
As part of its efforts to exit non-core activities, the company sold land on December 31, 2016 for ~ Rs 185 crore in Maharashtra, including a flat in Mumbai's Prabhadevi area for Rs 9.4 crore. The other sale effected was "MIDC Land & Building and some specific utility machinery of Ranjangaon unit" for Rs 174.45 crore, the company said in regulatory filing on January 1, 2017.
"What Bombay Dyeing aims to do now is to revive the loss making flagship textile business by investing in the brand, expanding store network, growing product portfolio and liaising with international designers. Manufacturing will be outsourced," brokerage Dynamic Levels said in an update a few days ago.
"From now till 2020, the Wadia group owned company plans to invest over Rs 100 crore in the brand, double its multibrand outlets to 10,000, more than double its franchise stores to 500 and commence three to four new products every year," Dynamic Levels added.
For the quarter ended September 2016, the company incurred standalone loss of Rs 71 crore on sales of Rs 430 crore.
In 2015-16, the company posted loss of Rs 84 crore on total sales of Rs 1,804 crore.
The company's chairman is Nusli Wadia, who was in the news recently in the context of the ongoing corporate battle saga within the Tata Group.
