Mishtann Foods shares rise 4% after Nomura Singapore raises stake

Shares of Mishtann Foods surged during the early trading session on Tuesday, after the company informed Nomura that it had increased the stake in the company. The company told the exchanges about the same through an exchange filing on Monday.

Nomura Singapore ODI has increased its shareholding to over more than 2 per cent of total share capital, the company said in the exchange filing. The overseas investor now owns 2.19 per cent stake or 2,18,82,762 equity shares in the company, which was 1.28 per cent stake or 1,28,25,854 equity shares earlier.

Following the update, shares of Misthann Foods rallied about 4 per cent to Rs 14 on Tuesday, before giving up its gains partially and commanding a total market capitalization of Rs 1,365 crore. The scrip had settled at Rs 13.55 in the previous trading session.

Shares of Mishtann Foods have surged more than 25 per cent in the last one month, while it has gained more than 50 per cent in the year 2023 so far. The stock has almost doubled investors wealth from its 52-week lows at Rs 7.09 hit in May this year.

Mishtann Foods reported a 525 per cent rise on a year-on-year (YoY) basis in the profit after tax (PAT) at Rs 68.91 crore for the June 2023 quarter, which stood at Rs 11.02 crore in the year ago period. Its PAT margins improved by 1,648 basis points (bps) to 23.44 per cent from 6.96 per cent in the same quarter previous year.

Gujarat-based Mishtann Foods is a homegrown agro food product company with primary focus on various types of Basmati rice. The company also has a sizable presence in the wheat and pulses segment. The company's rice processing facility is located near Ahmedabad, Gujarat which has an annual capacity of 1 lakh metric tonnes.

The company clocked an 86 per cent rise in the revenue from operations at Rs 293.94 crore in the Q1FY24, which stood at Rs 158.26 crore in the Q1FY23. The company's EBITDA stood at Rs 72.75 crore for the April-June 2023 period, up 300 per cent from Rs 18.24 crore in the same period last fiscal year.

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