Mishtann Foods, a leading Fast-Moving Consumer Goods (FMCG) company, has experienced a remarkable surge of over 80% in its shares within a span of three months, as reported by BSE. With its headquarters situated in Ahmedabad, the company achieved a consolidated profit after tax of Rs 68.91 crore in the April-June quarter of the financial year 2023-24.
Alongside its earnings report for the previous quarter, Mishtann also disclosed its plans to integrate two wholly owned subsidiaries specializing in environmental sustainability, specifically in the areas of grain-based ethanol and electric vehicle components.
Income-wise, the company recorded a total income of Rs 293.9 crore for the period ending June 30, 2023, indicating an 85% year-on-year change. This growth can be attributed to the strong demand observed across different geographies.
“The inclusion of subsidiaries engaged in grain-based ethanol and electric vehicle components will enable us to capitalize on emerging opportunities in sustainable technologies and eco-friendly solutions,” stated the company in an official exchange filing.
Moreover, Mishtann has recently outlined its plans to establish a grain-based ethanol manufacturing facility in Gujarat. The company has signed a Memorandum of Understanding (MoU) with the state government, allocating a budget of Rs 2,250 crore for the construction of the plant. Operations are expected to commence in the second quarter of 2024.
Global financial services group Nomura Singapore has recently increased its stake in Mishtann to 1.28%. This development is projected to positively impact the company’s revenue, as emphasized in their filing.
It is worth noting that the FMCG sector has garnered significant interest from foreign institutional investors (FIIs). Recognized as a safe and defensive sector, it has displayed a commendable performance even during the pandemic. With the relaxation of supply chain restrictions and the rising demand in both rural and urban areas, the industry is making a strong comeback.
On the BSE, Mishtann’s shares witnessed a nearly 20% surge, reaching Rs 13.45 per share on Tuesday. The company is a constituent of the S&P BSE SmallCap index.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
