THIS fashion stock hits one year high despite weak markets. Do you own?

Arnaav Fashions share price hits one-year high at ₹70.10 on Wednesday’s trading session on BSE. The stock surged 3.90 per cent intraday high on January 8, against previous close at ₹67.47.

Arnaav Fashions share price has gained nearly 1.22 per cent in the last one year and over 49 per cent in the last six months.

Arnaav Fashions stock gained after the company informed the exchanges that it has been sanctioned new Term Loan facility of ₹17.25 crore by its bankers for implementation of next phase of Expansion cum Modernisation plan having total project cost of ₹24 crore.

“Further, in this regard, we would like to highlight that with passage of time and introduction of newer technology machines, we undertake this modernization programme at our unit and replace some of old & obsolete machineries,” the company said in the filing.

The company further mentioned the changes and replacement of machineries –

In regards to same, at present, we are having one steam boiler at our unit, however with passage of time, operational capacity of boiler is much lower as compared to its rated capacity. Hence, we now propose to replace old steam boiler with higher capacity new steam boiler having 32 TPH capacity along with the Turbine of 2.34 MW for generation of power for captive utilisation. This may result into the overall energy saving of around 50% of our total energy bill.

At present, we are doing manual process of screen stripping. Now, with introduction of newer technology and for better output, we are adding one fully automatic Imported Rotary Screen Stripping Machine. With the installation of it, the overall useful life of screens will be increased, thereby resulting in overall cost saving of screens.

Apart from above, we would like highlight that currently, there is huge demand for DIGITALLY printed cotton cloths/ fabrics. A high productivity digital printing machines enables us to provide high quality designs with higher precession quality product.

Accordingly, to meet the demand of our customers and to compete with our competitors, we are also proposing to install one Imported Digital Printing Machine having production capacity of 8000 meters per day.

Further, presently we are also having 5 Stenter machines and further installing one new Stenter machine which increases our production capacity.

As stated above that, with passage of time and introduction of newer technology machines, we are planning to replace some of other plant & machines such as mercerizing machine, jigger machines, jet dyeing machines and others. Further, the management also expects to commence commercial production from the proposed programme by October, 2025. Accordingly, the implementation of the proposed expansion cum modernization programme will start in short span of time.