Padam Cotton Yarns Shares Rise Almost 5% After Rajasthani Namkeen Acquisition

Mumbai, Oct 7, 2025: Padam Cotton Yarns Ltd (BSE: 531395) shares jumped 4.94% to ₹4.46 (as of 2:53 pm IST) on Tuesday after the company reported a strategic acquisition in the food and beverage industry. The stock opened at ₹4.34 and hit an intraday high of ₹4.46 and a low of ₹4.21 during this session, showing revived investor interest.

Located in India, Padam Cotton Yarns deals in the “Other Textile Products” division, producing and trading cotton yarns and textiles. The diversification of the company into food and beverages is a strategic move that marks a substantial expansion of its business horizon and facilitates long-term growth.

Strategic Acquisition

Padam Cotton Yarns Ltd has signed a term sheet on 6 October 2025 with Rajasthani Namkeen Private Limited (RNPL) to acquire a 40.5% stake in the popular snacks and sweets manufacturer. The ₹13 crore transaction will be executed through a mix of ₹2 crore in cash and the remainder via a share swap arrangement. The deal, expected to close within 180 days, will make RNPL an associate company of Padam Cotton Yarns, marking the textile maker’s strategic foray into the fast-moving consumer goods (FMCG) sector. The move diversifies Padam Cotton Yarns’ business portfolio, signalling its intent to expand beyond its traditional textile operations into India’s growing packaged food market.

Rajasthani Namkeen Private Limited (RNPL), trading under the brand “MJ Rajasthani Namkeen”, was founded in 2016 and offers a diverse portfolio of namkeens, sweets, papads, and bakery products. The company recorded a turnover of ₹1,142.16 lakh and a net worth of ₹64.55 lakh in FY25, reflecting consistent growth over the past three financial years and a solid footing in the regional FMCG market.

Market Reaction

Padam Cotton Yarns Ltd witnessed robust trading activity, with a higher-than-average turnover of ₹20.71 lakh on the bourses. The stock demonstrated notable intraday volatility, moving within a day’s high-low range of ₹4.21–₹4.46, and a 52-week range of ₹3.63–₹12.76, reflecting market attention following its strategic foray into the FMCG sector.

Analysts highlighted that the company’s expansion into fast-moving consumer goods could provide new top-line growth opportunities while reducing cyclical exposure inherent in its textile business.

From a valuation perspective, Padam Cotton Yarns trades at a price-to-earnings (P/E) ratio of 7.19, with an earnings per share (EPS) of ₹0.62, and carries a market capitalization of ₹57.58 crore.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/059e9297-f532-420b-bf2e-9f356b40d7f9.pdf

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