Mishtann Foods Share Price Target; FMCG Stock To Plan Ethanol Blending Business

Mishtann Foods, an FMCG company that has given its stockholders a phenomenal return of 550 percent over the past five years, is now entering the ethanol blending market. A 1,000 Kilolitres Per Day plant for the production of grain-based ethanol has been announced by the small-cap firm for Gujarat. The planned facility is anticipated to cost ₹2,250 crore, with an expected annual income of ₹3,500 crore.

The proposal was disclosed by the small-cap firm in its exchange filing on Tuesday, which resulted in new purchase of the stock. This multibagger small-cap company has increased by around 3% in the previous two days, rising from ₹9.94 rupees per piece (Monday’s BSE close price) to ₹10.24 rupees per piece (Wednesday’s BSE high). But, this multibagger penny stock started Tuesday morning transactions with a significant upward leap; however, because of the Tuesday profit-booking trigger, this significant upward leap has decreased to less than 5%.

Mishtann Foods Ltd. stated the following when informing the Indian stock market exchange about the ethanol project: “In order to establish India’s largest grain-based ethanol project, with a capacity of 1000 KLPD, in Gujarat, Mishtann Foods and the Gujarati government have signed a Memorandum of Understanding (MoU). With an expected yearly revenue prediction of ₹3,500 crore for the corporation, the planned project is projected to cost the company ₹2,250. Mishtann hopes to start the plant’s activities in the second quarter of 2024.”

The small-cap firm went on to say that the aforementioned facility will be utilised to create ethanol and that adding ethanol as an additive is part of the petroleum policy to lessen the impact on crude oil imports. To lessen its reliance on crude oil imports, the Indian government has encouraged the establishment of such ethanol facilities under the roadmap from ethanol blending in India 2020–25.

Mishtann Foods received a number of orders for its brand of salt from significant retail chains earlier this year, and the firm rewarded its shareholders by issuing bonus shares in a 1:1 ratio or for each share they had.

Mishtann Foods Share Price History

In close to a year, from April 2019 to April 2020, FMCG stock had a significant sell-off. Mishtann Foods’ share price fell into the single digits during this one-year consolidation and subsequently declined to low of ₹2.70 per piece. But starting in June 2021, the price of this stock increased from ₹3 to ₹10 per share, giving stockholders a return of around 235 percent. Some analysts have upgraded their ratings on Mishtann Foods shares following the company’s share price increase.

We anticipate that Mishtann Foods’ stock will remain in double digits. According to Share India’s Vice President and Head of Research, Ravi Singh, “Due to its sustainable business approach, Mishtann Foods has produced significant revenue growth. The FMCG sector’s promising outlook is a strong supporter of the stock. In the upcoming quarters, it is anticipated that the company’s recent investments, the introduction of new goods, and its order book would significantly enhance its financials.” According to him, the stock might eventually reach values between ₹11 and ₹12.

Mishtann Foods’ net profit increased by 216.05% to ₹11.03 crore in the quarter that ended in June 2022 from ₹3.49 crore in the quarter that ended in June 2021. Sales increased by 118.73% to ₹158.27 crore in the quarter that ended in June 2022 as compared to ₹72.36 crore in the quarter that ended in June 2021.

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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