Ashish Chugh the micro-cap magician takes a fresh entry into this hidden gem; company is tapping into a huge USD 17.4 billion market!

In their partnership, Nextferm will invest USD 2m for the production setup in India, which will be ready for production later this year.

The Friday session which also happens to be the last trading session for the month of September was an interesting one, though the Nifty formed a bullish candle as the close was greater than opening, it had a long upper shadow which indicated profit booking at higher level and moreover, it traded within the range of the prior trading session.

Nifty opened higher at 19,581 and remained in a positive terrain throughout the session after positive global cues. Nifty hit an intraday high of 19,726 in the last hour of trade, but saw some profit taking before closing the day with 115 points gains at 19,638.

On the Weekly chart, the Nifty lost about 0.2 per cent and formed a small bodied bearish candlestick pattern with a minor upper shadow and long lower shadow.

The month of September belonged to the Small-Cap stocks and micro-cap stocks as small-cap index outperformed relatively and moreover, many of the micro-cap stocks witnessed a robust move. One such stock caught the attention of investors and it’s in micro-cap category as the name of stock is Kothari Fermentation & Biochem Ltd (KFBL).

KFBL, incorporated in 1990, is promoted by Mr Moti Lal Kothari and Mr Pramod Kothari. The company produces yeast and its derivatives at its plant in Sikandrabad, Uttar Pradesh, which has installed capacity of 2,000 tonne per month.

In the month of July there was an interesting development as Israeli foodtech company Nextferm & Kothari Fermentation teamed up to manufacturer fermented vegan protein.

Demand for meat alternatives is high, with today’s consumers increasingly keen to reduce their carbon footprints and reap the health benefits associated with decreased meat consumption. The market for meat alternatives looks set to grow exponentially to USD 17.4bn by 2027 and expansion into the plant-based market is a good opportunity for many manufacturers.

In their partnership, Nextferm will invest USD 2m for the production setup in India, which will be ready for production later this year.

The production setup that will be established in India will allow us to meet the growing demand for ProteVin, with a lower investment than planned with the ability to increase future capacity. However, in a recent development renowned micro-cap investor Ashish Chugh known for his acumen to spot hidden gems at an early stage purchased 1,00,000 shares of the stock at an average price of Rs 67.03. The stock ended Friday’s session with hefty gain of Rs 9.45 i.e. 14.75 per cent at Rs 73.50 and it registered a fresh 52-week high of Rs 74.65. 

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