This FMCG penny stock jumps nearly 6% on strong Q2 results 2024

Penny stock Mishtann Foods gained nearly 6 per cent in intra-day trading on Monday, October 28, following the company’s strong financial performance for the second quarter of FY25 (Q2FY25). The results, which highlighted substantial growth in both net profit and EBITDA, reflect Mishtann Foods’ position as a significant player in the Indian FMCG sector, with its main focus on the premium Basmati rice market.

For Q2FY25, Mishtann Foods, a fast-moving consumer goods (FMCG), reported a consolidated net profit increase of 21.89 per cent at ₹106.57 crore compared to ₹87.43 crore in the same quarter last year. Sales for the quarter stood at ₹341.88 crore, marking a 7.37 per cent rise from ₹318.40 crore in Q2FY24.

The company’s EBITDA also showed notable growth, up 20 per cent year-over-year (YoY) to ₹108.36 crore from ₹90.54 crore. This improvement was accompanied by a jump in EBITDA margins, which expanded by 326 basis points from 28.44 per cent in Q2FY24 to 31.69 per cent in Q2FY25. This margin expansion points to improved operational efficiency and cost management, crucial for sustained growth in a competitive sector.

In the first half of FY25 (H1FY25), Mishtann Foods recorded a marginal 7.7 per cent increase in net profit, amounting to ₹108 crore, compared to ₹100.22 crore in H1FY24. Revenue also saw a significant rise, climbing 18.3 per cent to ₹724.5 crore from ₹612.35 crore in the previous year's corresponding period. This steady performance reflects Mishtann’s growing market reach and expanding product lines.

Founded as one of India’s top FMCG firms, Mishtann Foods is known for its Basmati rice varieties and a range of other agricultural products, including pulses, wheat, and spices. The company’s rice processing plant, located strategically in Gujarat near Ahmedabad and port facilities, processes up to 100,000 metric tonnes annually. This location gives Mishtann Foods a cost advantage for exports, adding to its competitive edge in the international market. Mishtann’s Basmati rice range, which includes Raw, Sella, and Steam variants, caters to both wholesale and retail markets, appealing to a broad consumer base domestically and abroad. The company also sells edible salt products, including rock salt and pink salt, further diversifying its portfolio.

Stock Price Trend

In intra-day deals today, the stock jumped as much as 5.7 per cent to its day's high of ₹14.88.

Despite this positive quarterly performance, Mishtann Foods' share price has remained under base building mode for the last four straight months.

Currently, Mishtann Foods holds a market capitalisation of ₹1,516 crore. The stock has seen a 52-week high of ₹26.36 and a low of ₹11.93, indicating significant volatility over the past year.

As Mishtann Foods continues to expand its product offerings and increase its market presence, investors will be closely watching its ability to overcome these market fluctuations. The strong financial results provide a solid foundation for the company, yet sustained growth will depend on strategic market navigation and adapting to evolving consumer trends. With ongoing investments in operational efficiency and export potential, Mishtann Foods’ upcoming performance will be crucial to retaining investor confidence amidst broader market volatility.

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