Shares of this microcap company jumped up to 1.5 percent in Tuesday’s trading session after announcing the commencement of commercial production of the manufacturing unit in Assam.
With a market capitalization of Rs. 651 crores, the shares of Annapurna Swadisht Ltd started Tuesday’s trading session on a lower note at Rs. 370.15 compared to its previous close of Rs. 374.85. During the trading session, the shares hit a high of Rs. 376, gaining 1.5 percent and are currently trading at Rs. 374 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had commenced commercial production through a manufacturing unit at Tezpur Assam to expand its footprints in the North East markets in the Upper Assam, Meghalaya, Arunachal Pradesh, Tripura, Nagaland, Mizoram and Manipur.
The production capacity will be around 125 tonnes monthly with additional Rs. 3 crores sales. Furthermore, the company mentioned that they are focused on bridging the critical gap between affordability and superior quality through their product portfolio.
Coming onto the company’s financial statements, the revenue zoomed by 38 percent from Rs. 95 crores during H2FY23 to Rs. 131 crores in H1FY24. In addition, the net profits magnified by 75 percent from Rs. 4 crores to Rs. 7 crores during the same period.
The company has a hub in Asansol with a constructed area of approximately 50,142 sq. ft. and a manufacturing unit in Siliguri with a constructed area of around 35,000 sq. ft. The daily production capacity of the Asansol manufacturing unit is 15 MT of fryums, whereas that of the Siliguri unit is 10 MT of fryums.
Moreover, the company aims to offer a wide range of ethnic and cultural cuisines in a hygienic, ready-to-eat and affordable format and has partnered with Big Basket and plans to take the Olonkar range of snacks to key markets across India.
Looking at the important financial ratios, the Return on Equity (RoE) stood at 20.94 percent for FY22-23, reflecting the company’s ability to generate profits from shareholders’ equity. Similarly, the Return on Capital Employed (RoCE) was recorded at 23.42 percent during the same period, indicating efficient utilization of capital for generating profits. Additionally, the net profit margin, representing profitability, stood at 4.46 percent for FY22-23.
Headquartered in West Bengal, Annapurna Swadisht was incorporated in 2022. The company is one of the largest FMCG players in Eastern India in fast-growing segments in Fryums, Cakes, Candies, Namkeen, and Potato Chips.
Written By Vaibhav Patil
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