Winter starts on a good note! Monte Carlo shares jump 22% in two weeks; what lies ahead?

The stock of the company has jumped 21.66% in the past two weeks and 18.70% in one month. In comparison, the benchmark index, S&P BSE SENSEX, has gained 1.75% in 14 days and 2.54% in the 30-day period, BSE data shows. 

On Monday, the stock ended at ₹942.50 on the BSE, up 3.25% against the previous close. Its 52-week high level stands at ₹979.10, which was touched on December 5. 

This will lead to improvement in margins as well, Jain added.

Cotton wear contributed 59% of the company's sales in H1FY25, while woolens accounted for 19%. Home textiles added 16% of the sales, and kidswear contributed 5%, as per the report.

Monte Carlo Fashions: A brief history

Oswal Woolen Mills Ltd, the flagship company of the Nahar Group, began its operations in 1949 in Ludhiana. Its initial focus was on hosiery and textile fabrics, and in 1972 it set up its wool combing unit sensing the huge business opportunity in the domestic readymade knitwear. 

"Initially having expertise in hosiery and woolens, it was in 1984 when Monte Carlo was launched as a brand, which was a significant step in the evolution of the branded garment industry in India. Since then, it has been catering to the ever-growing demands of the clothing and fashion industry in India," as per the company's website. 

Further, to have a more focused approach to the Monte Carlo business, the readymade garment business was demerged from Oswal Woolen Mills to Monte Carlo Fashions Limited in the year 2011-12. 

The products offered under the brand Monte Carlo, apart from woolen knitted garments, include shirts, trousers, denims, bermudas, lowers, hi-street fashion shirts, tops, dresses, jumpsuits, urban tunics, shrugs, shorts, capris, narrow pants, leggings, track suits, and solid T-shirts for men, women, and tweens (8-14 years), the company adds. 

Monte Carlo Q2 FY25 Results

Monte Carlo Fashions reported a 39.8% fall in consolidated net profit to ₹8 crore despite a 3.4% increase in revenue from operations to ₹219.7 crore in Q2 FY25 as compared with Q2 FY24.

On the segmental front, revenue from the sale of cotton textile products was ₹171 crore (up 0.47% YoY), woollen textile product sale revenue was ₹85.3 crore (up 6.63% YoY), revenue from selling home textile products was ₹52.4 crore (up 58.31% YoY), and revenue from the sale of kids clothing products was ₹16.7 crore (down 17.96% YoY).

While operating EBITDA declined by 17% year-over-year (YoY) to ₹28.3 crore, operating EBITDA margins contracted by 316 basis points YoY to 12.88% in the second quarter.

Monte Carlo Fashions stated that it was committed to opening 45-50 exclusive brand outlets (EBOs) pan India, including West & South.

The company added that its online sales have picked up, particularly from its own website. The company has tied up with quick commerce partners like Blinkit, Swiggy, and Zepto for up to 30 minutes of delivery.