The packaged foods sector in India is rapidly evolving, projected to reach $6.4 billion by 2029, up from $2.8 billion in 2023. Dominated by dairy (38.8%) and snacks (32.3%), this market reflects changing consumer preferences for convenience and health, driven by urbanization and increased disposable income among the population.
With a market capitalization of Rs 954.77 crore, the shares of Mishtann Foods Ltd were trading at Rs 8.87 per share, decreasing around 3.27 percent as compared to the previous closing of Rs 9.17 apiece.
Matter Explanation:-
Mishtann Foods faced a significant drop in share price following a show cause notice from the Securities and Exchange Board of India (SEBI), which accused the company of serious financial mismanagement, including misappropriation of ₹100 crore through fictitious transactions with shell entities controlled by its promoters.
Moreover, SEBI alleged that Mishtann Foods inflated its sales and purchases through transactions with non-existent entities, raising concerns about the company’s financial integrity and governance practices.
Furthermore, the managing director and several directors were prohibited from accessing the securities market until further notice, compounding investor fears regarding the company’s leadership and future operations.
However, Mishtann Foods has denied the allegations and is seeking legal advice to contest SEBI’s findings, but this has not alleviated market concerns or halted the decline in share value.
Stock Performance:-
The stock has plummeted over 42% in the last 10 days, reflecting ongoing concerns about its financial health and governance issues amid increasing scrutiny of corporate practices in India.
Financial Performance:-
Looking forward to the company’s financial performance, revenue increased by 7 percent from Rs 318 crore in Q2FY24 to Rs 342 crore in Q2Y25. During the same period, net profit increased by 23 percent, from Rs 87 crore to Rs 107 crore.
Market Dynamic:-
The Basmati rice market is growing steadily due to demand for premium, healthier food. Mishtann Foods is expanding globally, targeting the Middle East, USA, and Singapore, while its 1000 KLPD ethanol project in Gujarat, set for mid-2026, aligns with India’s green energy goals.
Management outlook:-
Management highlighted challenges in operationalizing the ethanol plant due to regulatory approvals but remains optimistic about its long-term financial impact. To sustain profit margins amid rising Basmati competition, the company is shifting toward niche markets and remains confident in adapting to evolving market dynamics.
Company Summary:-
Mishtann Foods Limited is an India-based agro-product company. The Company is primarily engaged in the agricultural business i.e., manufacturing, processing, and trading of rice, wheat, and other food grains. It offers agri-commodities, such as basmati rice, wheat and dal, and rock salt.
Written by:- Abhishek Singh
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