Multibagger stock under Rs 10: Small-cap penny stock reports a 59 per cent jump in net profit!

The stock gave multibagger returns of over 270 per cent in just 2 years whereas BSE Small-cap Index is up by 38 per cent.

Mishtann Foods Limited (BSE Script Code: 539594), India's leading FMCG product company with a primary focus on various types of Basmati rice, has announced its quarterly and annual results for the year ended March 31, 2023. Here are the details:

Standalone Financial Performance Comparison – Q4FY23 vs Q4FY22

• Revenue from Operations grew by 10.04 per cent from Rs 153.47 crore in Q4FY22 to Rs 168.89 crore in Q4FY23 primarily driven by robust demand for various products in the domestic and international markets.
• EBITDA increased by 4.57 per cent from Rs 22.33 crore in Q4FY22 to Rs 23.35 crore in Q4FY23.  
• PAT increased by 7.45 per cent from Rs 13.15 crore in Q4FY22 to Rs 14.13 crore in Q4FY23.

Standalone financial performance for FY23 vs FY22

• Revenue from operations recorded a healthy growth of 30.45 per cent from Rs 498.57 crore in FY22 to Rs 650.38 crore in FY23.
• The EBITDA increased by 59.42 per cent from Rs 51.82 crore in FY22 to Rs 82.61 crore in FY23.
• PAT stood at Rs 49.92 crore in FY23 as compared to Rs 31.21 crore in FY22 witnessing a growth of 59.94 per cent.  
• In FY23, the company declared bonus share in the ratio 1:1 and a dividend of Rs 0.0010 per share for a face value of Rs 1.

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Management Comments: We are delighted with the positive response received for our entry into the Rock Salt segment with our brand "Mishtann." Our pink rock salt has gained traction in the retail market, and we successfully fulfilled orders from major retailers. This development demonstrates our commitment to diversifying our product portfolio and capitalizing on emerging market opportunities. The successful launch of Himalayan Pink salt across various markets in India is a testament to our strong distribution network and brand reputation. Leveraging our existing network of 70,000 distributors and retailers, we have been able to drive the success of this new product and capture market share. In the year ended 31 March 2023, we announced a 1000 KLPD grain-based ethanol manufacturing facility in Gujarat, a project supported by an MoU with the Government of Gujarat, which is a strategic move that aligns with our long-term growth objectives. With an estimated annual revenue projection of Rs. 3,500 crores, this venture represents a significant opportunity for revenue diversification and sustainable growth.

Overall, we remain confident in our ability to drive sustainable growth and value creation for our stakeholders. We will continue to focus on expanding our product portfolio, leveraging our distribution network, and pursuing strategic initiatives to solidify our market position and enhance shareholder returns. We extend our gratitude to our dedicated team, whose efforts and expertise have been instrumental in achieving these positive financial results.”

Today, shares of MFL plunged 0.97 per cent to Rs 8.13 per share with the day’s high of Rs 8.20 and the day’s low of Rs 7.95. The shares of the company have a PE of 16x, a ROE of 40.50 per cent and a ROCE of 46.50 per cent.

The stock gave multibagger returns of over 270 per cent in just 2 years whereas BSE Small-cap Index is up by 38 per cent. This FMCG small-cap stock should be kept under the radar.