Multibagger penny stock under Rs 15 announces rights issue up to Rs 50,00,00,000 after reporting a 525 per cent jump in net profit!
An Foreign Institutional Investor, Nomura Singapore Ltd ODI has hiked its stake in this company from 1.28 per cent to 2.19 per cent.
Mishtann Foods Ltd (BSE Scrip Code: 539594), one of India's leading FMCG company with a primary focus on various types of Basmati rice, announced that the Board of the company have approved rights issue for its equity shareholders, not exceeding Rs 50,00,00,000 or Rs 50 crore. The company has not yet announced the details of its rights issue, such as the price, record date, opening date, closing date, and ratio. These details will be announced soon after the exchange has approved the rights issue.
Earlier, the company announced its Quarterly Results wherein the net sales increased by 85.73 per cent to Rs 293.94 crore, EBITDA skyrocketed by 298.84 per cent to Rs 72.75 crore and PAT skyrocketed by 525.31 per cent to Rs 68.91 crore in Q1FY24 compared to Q1FY23. Additionally, Nomura Singapore Ltd ODI increases its shareholding to over 2 per cent of total share capital. Nomura Singapore Ltd ODI has hiked its stake in Mishtann Foods Ltd from 1.28 per cent (1,28,25,854 shares) to 2.19 per cent (2,18,82,762 shares).
According to the annual results, net sales increased by 90.33 per cent to Rs 490.51 crore and net profit skyrocketed by 395.97 per cent to Rs 5.79 crore in FY23 over FY22. In the last financial year, the company declared bonus shares in the ratio 1:1 and a dividend of Rs 0.0010 per share for a face value of Rs 1.
The company has reduced its debt and delivered good profit growth of 49 per cent CAGR over the last 5 years. The stock has an ROE of 39.70 per cent and an ROCE of 46.40 per cent. The stock gave multibagger returns of 270 per cent in just 3 years and over 400 per cent returns in 5 years. The company has a market cap of over Rs 1,200 crore.
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On Friday, shares of Mishtaan Foods Ltd plunged 0.16 per cent to Rs 12.71 per share from its previous closing of Rs 12.73. The stock has a 52-week high of Rs 14.79 and a 52-week low of Rs 7.09.
This FMCG Small-Cap stock should be kept under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.