Shares of this samosas and frozen food manufacturing company clocked 10 percent upper circuit after starting commercial operations at a manufacturing unit in Andhra Pradesh. The shares have delivered a multibagger return of 129 percent to its shareholders in one year.
Starting Friday’s trading session with a market capitalization of Rs.189 crores, Tanvi Foods (India) Ltd’s shares commenced at Rs. 181.50, registering a 10 percent upper circuit, marking a new 52-week high for the company, in contrast to its previous closing price of Rs. 165 per share.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had commenced commercial operations at the new state-of-the-art manufacturing unit at Seetharampuram, Andhra Pradesh.
Spanning an area of 100,000 square feet, the newly established unit will enable the company to boost its capacity from 50,000 pieces per day to approximately 7,50,000 pieces per day. Additionally, it is anticipated that the new unit will generate employment opportunities for approximately 800 to 1000 rural women.
Furthermore, the company mentioned that this is the largest unit in India which manufactures samosas, fresh and frozen agri products, snacks and other products using cutting-edge technology and equipment. The unit has also been installed with a unique blast freezing technology, one of its kind in India, which helps in improving the quality of the products without using any kind of preservatives and increases their shelf life.
Additionally, the total value of the project is approx Rs. 45 crores which has been funded through internal accruals, capital infusion through equity shares and debt.
This unit shall allow the company to increase its SKUs in the market and will also help the company to fully cater for the ever-rising demand for the company’s Samosas, fresh and frozen agri products, snacks and all other products both in India and in the overseas market.
Coming onto the company’s financial statements, the revenue decreased by 4 percent from Rs. 41.43 crores during the September quarter to Rs. 39.02 crores in the December quarter. On the other hand, the net profits declined by 86 percent from Rs. 1.07 crores to Rs. 14 lakhs during the same period.
Heaqaurted in Hyderabad, Tanvi Foods was incorporated in 2007. The company is in the business of manufacturing Corn Samosa, Spring Roll and Trading of Frozen Foods and has in-house warehousing and logistics, serving nearly 500 stores per week and offering a full merchandising service to chains and large retail stores.
Written By Vaibhav Patil
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