Mishtann Foods shares rebound after Q4 results, expansion plans

Shares of Mishtann Foods rebounded from the early cuts on Wednesday after the company reported its results for the period ended on March 31, 2023. The company also announced plans to incorporate two overseas subsidiaries after approval from the board.

Mishtann Foods reported a net profit of Rs 14.13 crore for the period ended on March 31, 2023. The company has reported a net profit of Rs 13.15 crore in the March 2022 quarter and Rs 13.71 crore in the December 2022 quarter. Its net profit margin stood at 8.36 per cent for the quarter.

The company reported revenue from operations at Rs 168.89 crore, registering a double-digit growth on a year-on-year (YoY) basis against Rs 153.47 crore in the year-ago period. The revenue from operations stood at Rs 163.64 crore in the preceding quarter.

Following the announcement of its results, shares of Mishtann Food rebounded over 4 per cent from early losses to Rs 8.27 from the day's low of Rs 7.95 on Wednesday. The smallcap company was commanding a market capitalization at Rs 820 crore. The scrip settled at Rs 8.21 on Tuesday.

For the entire year ended on March 31, 2023, Mishtann Foods reported a 60 per cent rise in the net profit at 49.92 crore, with PAT margin of 7.68 per cent. Revenue from operations increased 30.45 per cent to Rs 650.38 crore. EBITDA for the year came in at Rs 82.61 crore, rising 60 per cent from the previous year, while EBITDA margin expanded 231 bps to Rs 12.7 per cent.

The company board of Mishtann Foods also approved to incorporate its wholly-owned subsidiary in Singapore and the US, pushing its expansion plans. The company is looking to take advantage of the increased demand for rice across the globe.

Mishtann Foods has a rice processing facility located near Ahmedabad with a capacity of 100,000 metric tonnes per annum. The company claims that all of its products are grown using environmentally friendly farming practices and carefully processed and packaged to preserve their freshness and nutritional value.

Nomura Singapore has increased its stake in Mishtann Foods. The global fund house owns a 1.28 per cent stake or 1,28,25,854 equity shares of the company, the exchange filing added. Other than Basmati rice, Mishtann Foods also has a sizable presence in the wheat, pulses and spices segment.

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