This Midcap Cable stock which deals in the manufacturing business of Food Products was up by 1.25 percent in the day’s trade after the company announced the acquisition of Madhur Confectioners for Organic Growth.
Price Action
With a market capitalization of Rs. 860.80 Crores, the shares of Annapurna Swadisht Limited were up by 1.25 percent in the day’s trade touching a day’s high of Rs. 395 per share. The stock reiterated from the day’s high and was trading at Rs. 394.50 per share which is up 1.13 percent higher from the previous closing price of Rs. 390.10 apiece.
What Happened
The stocks of Annapurna Swadisht soared after the company announced the acquisition of Madhur Confectioners for Organic Growth, expanding the operations to utilize the capacity and reach customers and expanding presence through an existing distribution network. The Madhur Confectioners is a family-owned business that manufactures a range of products including Candy lollipops, flavored candies, Toy confectioners, and chocolates. As of FY24, the revenues of Madhur stood at Rs. 104.55 crore which saw an increase of Rs. 93.51 crore from FY23. With Net profits of Rs. 5.72 crore as of FY24.
About the Company
Annapurna Swadisht Limited was established in 2016 and converted into a public company in 2022. It is a leading FMCG player in Eastern India which specializes in snacks and food products like cakes, fryums, candies, and namkeen. The company operates two manufacturing units in Asansol and Siliguri with a combined daily production capacity of 25 MT. The company uses premium raw materials sourced locally. Annapurna Swadisht focuses on quality and hygiene. The company’s unique pricing strategy targets rural markets, selling over 1.2 million packets daily while expanding its distribution network across various states in India.
Products and Services
They offer a diverse range of snacks and food products, including candies, fryums, cakes, namkeen, chips, and Gohona Bori. They focus on affordability, with most items priced around Rs. 5, making them accessible to a broad customer base. They sell over 12 lakh packets daily, primarily targeting rural markets in Eastern India.
Financials & Ratios
Its Revenue from operations grew by 56 percent year on year from Rs. 131 Crores in H1FY24 to Rs. 204 Crores in H1FY25, accompanied by profits of Rs. 7 Crores to Rs. 12 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.1 percent and a return on capital employed (ROCE) of 18.5 percent. It has reported a debt-to-equity ratio of 0.34.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 39.92 percent in Annapurna Swadisht, Foreign Institutional Investors (FII) holdings stood at 4.40 percent, Domestic Institutional investors (DII) standing at 1.19 percent, and public holdings standing at 54.49 percent.
Written by Santhosh S
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