Image Source : FILE IMAGE Bombay stock exchange building
Fast-Moving Consumer Goods (FMCG) major Mishtann Foods shares have soared more than 80 per cent in just three months, according to BSE. Based out of Ahmedabad, the leading consumer goods giant has reported consolidated profit after tax in the April-June quarter of financial year 2023-24 at Rs 68.91 crore.
While releasing its earning for the gone by quarter, Mishthann also announced to incorporate two of its wholly owned subsidiaries to operate in the field on environmental sustainability including grain-based ethanol and components of electric vehicles (EVs).
Its total income stood at Rs 293.9 crore for the period ended June 30, 2023, showing a change of 85 per cent year-on-year. This was primarily driven by robust demand across geographies.
“The incorporation of subsidiaries operating in grain-based ethanol and electric vehicle components will open the doors for capitalizing on emerging opportunities in sustainable technologies and eco-friendly solutions,” it said in an exchange filing.
The company has recently announced plans to set up grain-based ethanol manufacturing facility in Gujarat. It has signed a MoU with the state government for setting up the plant at an outlay of Rs 2,250 crore. The company is aiming to commence the operations from the second quarter of 2024.
Recently, global financial services group Nomura Singapore increased its stake in the company to 1.28 per cent. The move is expected to benefit its topline, it had said in a filing.
Notably, the FMCG sector has emerged as a favourite space for FIIs. Considered to be a safe and defensive sector, it has performed relatively well even during the pandemic. The industry is gaining its momentum back with the ease in supply chain and rising demand in both the rural and urban areas.
Its shares climbed nearly 20 per cent on Tuesday on BSE to Rs 13.45 apiece. It is a constituent of S&P BSE SmallCap index.
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