52-Week High Alert: Cotton Yarn Company Announces Order Worth Around Rs 18 Crore From Das Fabrics Ludhiana & C Mohan International

A B Cotspin India Ltd. (NSE: ABCOTS) has secured a significant domestic order valued at approximately Rs 18 crore for the supply of 712 metric tons of cotton yarn. This order, which is to be executed within two months, was awarded by Das Fabrics Ludhiana and C Mohan International. The new contract highlights the company's strong market position and its ability to secure large-scale domestic deals. Additionally, A B Cotspin is set to migrate to the main board of both the NSE and BSE on September 24, 2025, a move that marks the successful completion of three years since its listing on NSE-Emerge. The company has also provided a positive financial outlook, projecting a turnover of ₹350–400 crores and an EBITDA of ₹40–45 crores for the fiscal year 2025-26.

This positive development for A B Cotspin occurs within a favorable broader context for the Indian textile industry. The industry is poised for growth following the recent India-UK Free Trade Agreement (FTA), which will eliminate tariffs ranging from 8–12% on Indian textiles and apparel, making them more competitive against exports from countries like China and Bangladesh. This agreement is expected to fuel significant growth in major export hubs such as Tirupur, Surat, and Ludhiana. Furthermore, the Indian government has temporarily suspended the 11% import duty on cotton to help textile mills manage rising input costs. These supportive measures, combined with potential reductions in US reciprocal tariffs on Indian goods, could significantly boost the industry's competitiveness and profitability, benefiting companies like A B Cotspin.

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Incorporated in 1997, A B Cotspin India Ltd is a diversified manufacturing company primarily engaged in cotton ginning, manufacturing, and trading of both combed and carded cotton yarn and fabrics, supplying mainly to textile industries in Punjab and Haryana. Additionally, the company is involved in the extraction of oil and the production of cakes from cotton seeds, a by-product of its ginning process. Their yarn manufacturing encompasses various types, including 100 per cent cotton yarn of counts 20-30s, double yarn of counts 20-30s and slub yarn, while their knitted fabric production includes combed, carded and slub varieties, with in-house yarn requirements being met internally. The company’s product profile extends beyond cotton to include mustard-based products like seed cake and oil, as well as specialised yarns such as BCI yarns and other items like oil gads and cloth.

Today, shares of A B Cotspin India Ltd jumped 10.3 per cent and made a fresh 52-week high of Rs 504 per share from its previous closing of Rs 457 per share. The company has a market cap of over Rs 1,000 crore and the stock gave multibagger returns of over 1,100 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.