Sai Silks Kalamandir shares see their best single-day gain since listing but remain below IPO price

Shares of Sai Silks Kalamandir Ltd. surged over 11% on Friday, October 3, in response to their September quarter business update. However, the stock continues to trade below its IPO price.

The company informed the exchanges that it recorded a turnover of nearly ₹444 crore during the September quarter, indicating a growth of 28% from the same quarter last year, when the turnover stood at ₹347 crore.

For the first half of the current financial year, the company's turnover increased by 34% from the same period last year to ₹823 crore.

The company also opened five new stores during the quarter, one of Kanchipuram Varamahalaxmi Silks in Tirupati, and four others of Valli Silks in Nizampet and Attapur in Telangana, and Tirupati and Vijayawada in Andhra Pradesh.

Sai Silks also plans to expand its store presence with 10 new openings with six new stores of the Kanchipuram Varamahalaxmi Silks format. Two of those stores will be in Karnataka, three in Tamil Nadu, and one in Telangana.

Additionally, under the Valli Silks format, there are plans to launch four new stores, with two each in Andhra Pradesh and Telangana respectively.

Only one analyst has coverage on Sai Silks. The stock though has gained on strong volumes on Friday, with nearly 60 lakh shares being traded in the first 50 minutes of the trading session itself, compared to the 20-day average of 91,000 shares.

Shares of Sai Silks Kalamandir are trading 10% higher at ₹170.6. With this move, the stock has reversed its losses for the year but remains below its IPO price of ₹222. The stock has gained 50% from its post-listing low of ₹113. This is the biggest single-day gain for the stock since it went public.