Mishtann Foods shares up 35% in a month; here's what fueling the rally

Shares of Mishtann Foods extended their gains on Tuesday as the stock has been on the radar of investors for a month. It has surged 35 per cent during the period. The packaged products manufacturer has been rising higher amid the buying by global funds and expansion plans buzz.

Overseas investor Nomura Singapore raised its stake in Mishtann Foods to 1.38 per cent, or more than 1.38 crore equity shares. The FMCG product company is also eyeing to introduce new products in the domestic market like free-flow iodized salt, crystal salt and rock salt.

Shares of Mishtann Foods jumped about 5 per cent on Tuesday to Rs 9.70 apiece, before giving up its gains partially. The company was commanding a total market capitalization of Rs 970 crore. The scrip had settled at Rs 9.27 on Monday. Shares of Mishtann Foods have gained about 20 per cent, while it is up 35 per cent in the last one month.

The homegrown FMCG player, which deals in various types of Basmati rice, is also looking to enter new markets within India and across the globe. It is eyeing geographical expansion in North East India, Africa and the Middle East.

Watch: MRF share price hits Rs 1,00,000, the first Indian stock to reach the milestone. MRF rallies 900% in 11 years; should you buy, hold or sell?

Shares of Mishtann Foods rose 3 per cent on Friday to Rs 8.71. The stock has gained about 23 per cent in the last three weeks from its price of Rs 7.1 on May 23, Monday. The smallcap company commanded a market capitalization of Rs 864 crore.

The company, through its wholly-owned subsidiary Grow and Grub Nutrients FZ, intends to focus on international trade with increased exposure in various untapped markets. The company is looking to take advantage of the increased demand for rice across Africa, after the United Arab Emirates (UAE) in the Middle East.

Mishtann Foods reported a net profit of Rs 14.13 crore for the period ended on March 31, 2023, with a profit margin of 8.36 per cent for the given quarter. The company reported a net profit of Rs 13.15 crore in the March 2022 quarter.

Also read: Vodafone Idea, IRFC, Bandhan Bank, PB Fintech: Midcap shares that MFs bought and sold in May