Under-the-radar Aarvee Denims & Exports Ltd is the subject of buzz having provided a whopping 530% return in a year. While everyone else was busy looking at the large-cap favorites, it was quietly making a small-cap player a multibagger without anyone noticing, and look at the stock lingering below ₹150.
Last year, the stock was languishing at ₹22. Now, it is perched high at ₹146.40, and doesn’t show any signs of abating. The company just announced it is now debt-free. That is correct; no bank borrowings, no interest burden. That propelled the stock more than 4.6% on Friday alone.
Retail investors forever in search of the next big newsflash, Aarvee Denims is now a name that cannot be overlooked.
Debt-Free Status Sparks Hype
On June 3, the company informed stock exchanges that it had cleared all its bank debts. That is a rare feat for a textile firm, especially one that has been struggling in the past. The market responded positively after the announcement. The stock is currently 10% greater this week alone and over 25% in 2025 so far.
Over the past six months alone, the stock has jumped more than 72% to become one of the industry’s strongest performers.
Promoters Cutting Stake — Red Flag or Strategy?
Yes, good news as it may be, there is something that caught investor attention. Promoters have been cutting stake. Their holding, which was 60.81% in December 2024, has fallen sharply to 30.56% as of May 2025.
Why would holders of inside information sell shares in a rapidly rising stock? Some take it as a sign of distress. Others suspect that promoters might be reshuffling or profiting from the rally. Either way, the move has generated heat on investor bulletin boards.
No Dividends Since 2012 — Yet Stock Shines
Interestingly, Aarvee Denims did not pay a dividend in over a decade. The last one was in 2012, a paltry ₹0.50 per share. But clearly, investors are not that worried. They are betting on capital appreciation, not passive income.
The market capitalization of the company is currently at ₹343.45 crore, and with the trend gaining, most believe that it might cross this figure as well.
While Aarvee Denims shines today, never ever forget that stock markets are dangerous. The huge rally may be thrilling, but future investors have to remain cautious and take the counsel of a money manager before taking any action.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any stocks.