SME FMCG Stock Hit 5 Per Cent Upper Circuit On October 22; Company forays into ice cream business with strategic investment in ice cream brand Melt ‘N’ Mellow
The company has a market cap of over Rs 650 crore with a PE of 73x, an ROE of 20 per cent and an ROCE of 23 per cent.
On Tuesday, shares of Krishival Foods Limited hit a 5 per cent upper circuit to Rs 295.05 per share from its previous closing of Rs 281 per share. The stock is up by 38.52 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.
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About the Company
Krishival Foods Ltd., established in 2014, is a prominent player in the processed nuts and dry fruits industry. The company transforms raw nuts and dried fruits into flavourful, packaged products marketed under 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. The company has a market cap of over Rs 650 crore with a PE of 73x, an ROE of 20 per cent and an ROCE of 23 per cent.
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.
Disclaimer: The article is for informational purposes only and not investment advice.