Packed dry fruit company make a strategic investment in Melt ‘N ’ Mellow Foods Pvt Ltd for business expansion
The stock is up by 48 per cent from its 52-week low of Rs 213 per share.
Krishival Foods Limited has announced a strategic investment in Melt ‘N ’Mellow Foods Private Limited. The company will acquire a significant 52.94 per cent stake in Melt ‘N ’Mellow, which is a leading player in the ice cream, milk products, and bakery products market. This acquisition aligns with Krishival Foods' strategy to diversify its business portfolio and enter the growing food and beverage sector.
By acquiring Melt ‘N ’Mellow, Krishival Foods will gain access to established brands, a strong distribution network, and expertise in the ice cream, milk products, and bakery products market. This investment is expected to provide significant growth opportunities for both companies, as they leverage their combined strengths to expand their market reach and product offerings.
About the Company
Krishival Foods Ltd., established in 2014, is a prominent player in the processed nuts and dry fruits industry. The company specializes in transforming raw nuts and dried fruits into flavorful, packaged products marketed under the brand Krishival Nuts. Their product range includes cashews, almonds, pistachios, dry figs, and combo packs, which are widely available across 64 tier II and tier III cities in India.
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In May 2023, the company rebranded from Empyrean Cashews Ltd. to Krishival Foods Limited. To enhance its processing capacity, Krishival Foods acquired a 5-acre plot in Halkarni, MIDC, Kolhapur district, adjacent to its existing processing units. This expansion will enable the company to establish an additional ultra-modern processing unit. Furthermore, Krishival Foods has launched its e-commerce platform to provide customers with convenient online access to its range of nuts and dried fruits.
The company has a market cap of over Rs 700 crore with a PE of 73x, an ROE of 20 per cent and an ROCE of 23 per cent. On Tuesday, shares of the company were trading at Rs 314.95 per share, up 4.13 per cent from its previous closing of Rs 302.45 per share. The stock is up by 48 per cent from its 52-week low of Rs 213 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
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