Exxaro Tiles shares rise 16% today; here's what driving the stock

Shares of Exxaro Tiles rose sharply during the early trading session on Friday after the company announced its new showroom in Mumbai, which will be open for operations later this month. The company informed about the same through an exchange filing on Thursday.

Exxaro Tiles will be unveiling a new showroom in Andheri, Mumbai and the inauguration is scheduled on September 17, 2023, the company said in a release filed with the exchanges. "We strive to maintain an unwavering focus on growth and expansion of our geographic footprint," it said.

In the filing, it also reiterated its recent order win worth Rs 35-40 crore, which were bagged from big size GVT slabs including 1200x1800 size our highly premium product and including our other sizes as well in vitrified tiles segment.

Following the announcement, shares of Exxaro Tiles gained about 16 per cent to Rs 149.25 on Friday, before giving up its gains partially and commanding a total market capitalisation of more than Rs 650 crore. The scrip had settled at Rs 128.95 in the previous trading session on Thursday. The stock has gained over 50 per cent in the current fiscal year so far.

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"Product innovation and improvement continue to remain our key focus areas. Our eyes are on the premium products mix, which yields higher per unit value on margins. The latest order for big Slab has been a laudable feat, furthering our goal of fortifying our premium segment’s reach and performance," said Mukesh Patel, Chairman and Managing Director at Exxaro Tiles.

Exxaro Tiles reported a 10 per cent jump on a year-on-year (YoY) basis in revenue from operations at Rs 74.13 crore in June 2023, which stood at Rs 67.59 crore in June 2022. However, its profit dropped 85 per cent to Rs 0.16 crore, while EBITDA came in at Rs 8.29 crore for the period.

Gujarat based Exxaro Tiles is into ceramic tiles industry, offering an innovative range of tiles. The company offers glazed vitrified tiles, long-lasting vitrified floor tiles, and a new big slab in replacement of granite and marble.  The Company currently sells its goods to over 10 countries and has more than 2,000 touch points across 25 states, mostly in South and West India. 

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