Only Buyers: FII-backed high ROE & high ROCE multibagger penny stock under Rs 20 hit 52-week high; PAT zooms over 690 per cent!

The company has reduced its debt and delivered good profit growth of 68 per cent CAGR over the last 3 years.

Today, one of the Top Gainers on BSE, shares of Mishtaan Foods Ltd gained 9.36 per cent to an intraday high & 52-week high of Rs 17.99 per share from its previous closing of Rs 16.45 per share. The shares of the company saw a spurt in volume by more than 3.10 times on BSE.

Mishtann Foods Limited produces and distributes food products. The company offers spices, cereals, pulses, rice, flour, wheat, oilseeds, and vegetables. Mishtann Foods markets its products in India.

The company experienced significant growth across key financial metrics in Q2FY24 compared to Q2FY23. Revenue from operations soared by 99.50 per cent, reaching Rs 318.39 crore, primarily driven by robust demand. This strong performance translated into a 394.21 per cent jump in EBITDA, which climbed to Rs 90.54 crore. Consequently, EBITDA margins witnessed a remarkable expansion of 1695 bps, rising from 11.48 per cent to 28.43 per cent.

Profitability further strengthened, with PAT growing by a staggering 690.50 per cent to Rs 87.43 crore. This impressive rise was accompanied by a surge in PAT margins, which expanded by 2053 bps from 6.93 per cent to 27.46 per cent. Overall, these figures paint a picture of exceptional financial performance in Q2FY24, driven by robust demand and improved operational efficiency.

The company witnessed a significant increase in its shareholding by a prominent foreign institutional investor. Nomura Singapore Ltd ODI, a subsidiary of Nomura Holdings, Inc., boosted its stake in Mishtann Foods from 1.28 per cent to 2.19 per cent in the September quarter. This strategic move suggests strong investor confidence in Mishtann Foods' future prospects.

The company's recent financial performance further supports this optimism. Mishtann Foods delivered remarkable growth in FY23, with net sales soaring by 90.33 per cent to reach Rs 490.51 crore and net profit witnessing a phenomenal 395.97 per cent surge to Rs 5.79 crore compared to FY22. This remarkable performance was further enhanced by the company's decision to reward shareholders with a 1:1 bonus share issue and a dividend of Rs 0.0010 per share, demonstrating its commitment to shareholder value creation.

With its robust financial performance, strategic focus on Basmati rice, and growing investor interest, Mishtann Foods is poised for continued success, solidifying its position as a leading player in the Indian FMCG sector.

The company has reduced its debt and delivered good profit growth of 68 per cent CAGR over the last 3 years. The stock has a ROE of 39.70 per cent and a ROCE of 46.40 per cent. The stock gave multibagger returns of over 120 per cent returns in 2 years. This FMCG Small-Cap stock should be kept under the radar.

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