Aarvee Denims & Exports Ltd: After tremendous returns, now the good news of being debt free, wave of happiness among investors
Bumper jump in shares, more than 500% return in 1 year . If you are among those who have been holding shares of Aarvee Denims & Exports Ltd for the last one year, then this news is no less than a gift for you. The company’s shares have given a return of more than 530% in the last 12 months. This means that if you had invested money in this company a year ago, today your amount would have multiplied.The 52-week high of the stock has been Rs 159.90 and the low has been Rs 22.36. Currently, the company’s stock is trading around Rs 146.40. On Friday, the stock closed with a gain of 4.61%. This week itself, it has gained more than 10%. Since the beginning of 2025, the company’s stock has registered a growth of 25%.
The company is completely debt free, investors’ confidence has increased – One of the major reasons for the rise in the stock is that now the company is completely debt free. In the information given to the exchange on June 3, Aarvee Denims made it clear that now the company does not have any debt left from any bank or financial institution. This news is a matter of great relief and confidence for investors. Being debt free means that the company can now use its profits for development and expansion, due to which there is still a possibility of good returns to the investors in the future.
Decline in promoters’ stake but the stock remains strong – While on the one hand the financial position of the company seems to be getting stronger, on the other hand the promoters’ stake is continuously declining. On December 31, 2024, the promoters held 60.81% of the company’s shares, which came down to 38.77% in the March quarter. On 17 May 2025, the promoters once again sold some more shares, reducing the stake to 30.56%. A fall in the promoters’ stake is usually a cause of concern, but looking at the performance so far, the market is not taking it negatively at the moment.
No dividend since 2012, can we expect more now – The company last paid dividend in the year 2012, when it got a dividend of only Rs 0.50 per share. No dividend has been paid since then. But now that the company is debt-free and a strong jump has been seen in the shares, investors are hoping that perhaps the dividend may be announced now.Talking about market cap, the total market capitalization of the company is around Rs 343.45 crore. In such a situation, if the company decides to share the profits with the shareholders, then this step can increase the value of the stock even more.
Alert for investors: What may happen next – Although Aarvee Denims has performed well recently, the decline in promoters’ stake and the long track record of not paying dividends do raise some questions. At this time when the stock is rising, many people may think of holding it for the long term. But it is also important that investors do their research and consult a financial expert if needed, because risk always remains in the stock market.
(This is not an investment advice. Before investing in the stock market, definitely take expert advice.)
