Purple United Sales in Focus After Bulk Deal by Foreign Investors
Shares of Purple United Sales Limited, a premium fashion brand specializing in apparel, footwear, and accessories, gained attention on Wednesday following a significant bulk deal. Multiple foreign institutional investors (FIIs) offloaded a combined 1.3% stake in the company, valued at approximately ₹1.55 crore.
Stock Price Movement
At 10:29 AM, shares of Purple United Sales were trading at ₹125 on the NSE, marking a 0.12% increase from the previous close of ₹124.85. The company, which has a market capitalization of ₹120 crore, witnessed a surge in trading volume following the bulk deal transactions.
Bulk Deal Details
According to NSE bulk deal data, two prominent foreign investors sold significant stakes in the company through open market transactions:
- Meru Investment Fund PCC offloaded 52,000 equity shares, equivalent to a 0.54% stake, at an average price of ₹123.97 per share, valuing the deal at ₹64.4 lakh.
- Pine Oak Global Fund divested 73,000 equity shares, or 0.76% stake, at an average price of ₹125 per share, totaling approximately ₹91.25 lakh.
This follows a previous offloading spree by Pine Oak Global Fund on January 15, when the fund sold 1.59 lakh shares for about ₹2.57 crore, averaging ₹161.72 per share. On the same day, Meru Investment Fund PCC offloaded 51,000 shares at an average price of ₹163.41 per share, bringing in around ₹83.3 lakh.
Strong Financial Performance
Despite the sell-off by foreign investors, Purple United Sales has shown remarkable financial growth. The company’s revenue surged by 66.5% year-on-year (YoY), rising from ₹25.7 crore in FY23 to ₹42.8 crore in FY24.
Additionally, net profit witnessed an impressive 220% increase YoY, jumping from ₹1.5 crore in FY23 to ₹4.8 crore in FY24. This significant rise highlights the company’s robust business model and growing market presence.
Company Overview
Purple United Sales Limited is a leading fashion brand offering a diverse range of clothing, shoes, and accessories, catering to customers across all age groups. The brand has carved a niche in the competitive fashion industry, positioning itself as a premium choice for stylish apparel.
Key Financial Ratios
| Metric | Value |
|---|---|
| Market Cap | ₹120 Cr. |
| Current Price | ₹125 |
| 52-Week High / Low | ₹235 / ₹120 |
| Stock P/E | 24.9 |
| Book Value | ₹— |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 25.5% |
| ROE (Return on Equity) | 34.8% |
| Face Value | ₹10.0 |
| Promoter Holding | 63.8% |
| Price to Book Value | — |
| Debt to Equity Ratio | 1.42 |
| Pledged Percentage | 0.00% |
| Industry P/E | 38.2 |
| RSI (Relative Strength Index) | 36.0 |
| EPS (Earnings Per Share) | ₹7.27 |
| 200-Day Moving Average | ₹186 |
| Free Cash Flow (3 Years) | ₹-0.89 Cr. |
| Free Cash Flow (5 Years) | ₹— |
| Debt | ₹33.7 Cr. |
| Return on Assets | 11.8% |
| Price to Sales Ratio | 2.81 |
Investor Takeaways
- Stock remains in focus due to strong financials and sustained revenue growth.
- Bulk deal selling by foreign investors suggests profit booking at current levels.
- Strong return ratios (ROCE: 25.5%, ROE: 34.8%) indicate the company’s operational efficiency.
- Debt-to-equity ratio of 1.42 suggests a moderate level of debt, which investors should monitor.
- 200 DMA (₹186) indicates the stock is currently trading below its long-term trend, possibly signaling an undervaluation.
Frequently Asked Questions (FAQs)
1. Why is Purple United Sales in focus today?
The stock is in focus due to a bulk deal where foreign investors sold a combined 1.3% stake, worth ₹1.55 crore.
2. Who sold the shares, and at what price?
- Meru Investment Fund PCC sold 52,000 shares at ₹123.97 per share for ₹64.4 lakh.
- Pine Oak Global Fund sold 73,000 shares at ₹125 per share for ₹91.25 lakh.
3. Has this selling happened before?
Yes, on January 15, Pine Oak Global Fund sold 1.59 lakh shares for ₹2.57 crore, and Meru Investment Fund PCC offloaded 51,000 shares for ₹83.3 lakh.
4. How is the company performing financially?
Purple United Sales reported a 66.5% YoY increase in revenue and a 220% rise in net profit in FY24.
5. Is the stock a good investment after this bulk deal?
Despite foreign investors selling, the company has strong financials, high ROE (34.8%) and ROCE (25.5%), and a growing market presence, making it an attractive long-term investment.
Conclusion
Purple United Sales continues to show strong growth in financial performance, despite FII selling. With a growing revenue base and impressive profitability, the stock remains one to watch. Investors should monitor future bulk deals, price movements, and company updates to make informed decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.