LIC-backed penny stock under Rs 10: This micro-cap company makes strategic acquisition in Brewtus Beverages Pvt Ltd - expanding into beer & whiskey production!

The stock gave multibagger returns of 400 per cent in just 2 years and a whopping 1,280 per cent in 3 years.

Integra Essentia Limited announces significant developments in its winery and beverages segment. The company is acquiring an additional substantial stake in Brewtus Beverages Private Limited (BBPL), a current associate with a 25.76 per cent equity holding acquired in Q2 FY2024. This acquisition will increase Integra Essentia's ownership to 51 per cent, officially making BBPL a subsidiary.

Furthermore, to propel BBPL's growth, Integra Essentia has committed to invest up to Rs 10 crore in the first phase. This investment underscores the company's strategic focus and commitment to expanding its presence in the promising beverage market.

Integra Essentia Limited sees immense potential in its subsidiary, BBPL, to drive significant growth in the lifestyle beverages business division. The company is actively pursuing various strategic initiatives to expand its footprint in this segment and the broader life essentials domain.

Acquisition-Driven Expansion: Integra Essentia is exploring various options, including acquisitions, mergers, and other strategic partnerships, to accelerate its growth. This includes evaluating opportunities to acquire breweries and distilleries in Europe, further solidifying its presence in the beverage industry.

Enhanced Branding Efforts: The company recognizes the importance of branding in today's competitive market. To strengthen its brand presence, Integra Essentia will soon launch a series of events to promote its new products and brands. These events will target established and renowned businesses within the beverage industry, fostering deeper partnerships and greater market reach.

Combined Growth Strategy: By leveraging the potential of BBPL, coupled with strategic acquisitions and focused branding efforts, Integra Essentia aims to achieve exponential growth in both the lifestyle beverages and life essentials segments. This comprehensive approach positions the company for long-term success and dominance in these dynamic markets.

Earlier, Integra Essentia Limited secured significant orders totalling Rs 45,10,00,000 for premium rice, dry fruits, infrastructure materials and other essentials, aiming for 15-20 per cent growth by March 2024 through strategic partnerships and diverse clientele. The company is also exploring synergistic integrations to tap into the growing demand for life essentials and lifestyle products.

bonus Issue: The company will issue bonus shares in the ratio of 1:1, meaning that for every 1 equity share of Rs 1 held by an eligible shareholder on the record date, the shareholder will receive 1 additional bonus share of Rs 1. The record date to determine eligible shareholders will be announced separately.

Results: The company's consolidated financial performance improved significantly in Q2FY24 and H1FY24 compared to the same periods in the previous fiscal year. The company's revenue grew by 17.11 per cent in Q2FY24 and 7.79 per cent in H1FY24. EBITDA increased by 420.98 per cent in Q2FY24 and 407.23 per cent in H1FY24, and PAT increased by 248 per cent in Q2FY24 and 217 per cent in H1FY24. According to the annual results, the net sales increased by 171 per cent to Rs 24,141.41 lakh and net profit skyrocketed 600 per cent to Rs 666.67 lakh in FY23 over FY22. These results indicate that the company is performing well and is on track to achieve its financial goals.

Integra Essentia Ltd is in the business of life essentials viz., food (agro products), clothing (textiles and garments), infrastructure (materials and services for construction and infrastructure development) and energy (materials, products and services for renewable energy equipment and projects). The company has a market cap of Rs 285 crore. As of September 2023, Life Insurance Corporation of India (LIC) owns a 1.06 per cent stake in the company.

Today, shares of Integra Essentia Ltd gained 5.13 per cent to Rs 6.35 per share from its previous closing of Rs 6.04. The stock gave multibagger returns of 400 per cent in just 2 years and a whopping 1,280 per cent in 3 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.