Share price of Womens Next Lingerie rose to Rs 75 in the third week of January, an increase by 50 per cent, compared to January 8, 2016 when it was quoted at Rs 50.60. The sudden increase prompted BSE-SME officials to ask for a clarification from Womens Next Lingerie. But all that the company had to say was – it was just investors’ interest on the company.

While BSE-SME officials were in a fix about the Women’s lingerie manufacturer, SMEPost.com tried to unravel the reason behind the surge in share price.

Speaking to SMEPost.com , Womens Next Company Secretary, Puneet Mangal, said, “The rising disposable income and the increase in the number of working women have been favorable for the company’s business. We have also increased our production recently based on the growth outlook of the company”. The promoters of Thane based Womens Next are Bhavesh Bhanushali, Premila Bhanushali and Anand Bhanushali.

But Mangal added, “I won’t be able to give you the exact reason for the sudden spurt in share price. We have already given a clarification to the exchange.”

A little bit of research on the company’s business and its annual reports demystify the surge in its share price further. Womens Next Lingerie is riding high on three factors that it thinks are conducive for its growth — a rise in sex ratio from 933 females per 1000 males to 943 females per 1000 males, increase in disposable income and rising number of working women.

The spurt in the share price might also be due to the increased in net profit of Womens Next during FY 2015. Womens Next’s profit after tax increased to Rs 75,72,609 during financial year 2014-15 compared to Rs 65,81,734 during financial year 2013-14.

The company has said in its annual report that, “The lounge wear and lingerie industry in India is expected to grow at a CAGR 10-12% over the period 2009-2020”. It also said that by the year 2020, the Indian inner wear market will have a share of 10 per cent in the whole Indian apparel market.