Mishtann Food’s Stocks Grew 31% in 3 Years!

Company Overview: 

Mishtann Foods Limited is India’s leading FMCG product company, majorly focusing on variety of Basmati rice. Recently, it has announced that it is looking to introduce some new products for the domestic market like free flow iodized salt, crystal salt, and rock salt and has also ventured into new markets like North Eastern India. Eventually this will lead to increase in the top line of the company as per the management. Company also has a presence in wheat and pulses segment. 

Its product portfolio includes Raw, Sella and Steam Basmati Rice, Toor Dal, Button Wheat and Salt. 

Industry overview: 

Asia has always been home for rice production. India is the second largest producer of rice in the world by producing 124 million tons after China, which produces 147 million tons. More than half of the rice produced worldwide is generated by China and India combined. Thailand, Indonesia and other Southeast Asian nations all grow rice as their main crop. The rice market size is estimated to reach $356 billion by 2030, growing at forecasted CAGR of 2.6%. 

Latest Announcement: 

FII Nomura Singapore Ltd ODI, over the period has increased its stake to 1.28 % (1,28,25,854 shares) whereas Promoter hold 49.77% and Public shareholding is 49.10%. 

In the month of April’23 company had announced the incorporation of a wholly owned subsidiary company named “Grow and Grub Nutrients FZ – LLC” in UAE. The new subsidiary will allow the company to tap into new markets and leverage the existing business across geographical borders. It will also enable them to strengthen their position as a leading agro-products company, both in India and outside India. 

Performance: 

As on May 24, share price soared 5.6% and is trading around Rs 7.5. Its previous day closing was Rs 7.10. The company has a market capitalisation of Rs 739 crore. Stock has given a CAGR return of 31% in last 3 years. It has a PE of 15.1x whereas ROE is 36.7%. Company is yet to announce its last quarter financials of FY23. In FY22, company’s revenue was up by 42% from Rs 351 crore to Rs 499 crore with an Operating profit margin of 10% in FY22. Profit after tax was Rs 31 crore with a margin of 6.2%. 

During the course of the past nine years, the company has experienced a significant increase in its balance sheet size, expanding from 11 crore to 156 crore. Simultaneously, the company has managed to reduce its debt from Rs 54 crore in FY21 to Rs 41 crore in FY22. 

This FMCG company has a great potential to grow further as they have various plans to expand operations across the globe in the upcoming future. It should be kept under the radar.