This Ace Investor stock deals in the business of being a manufacturer and exporter of products that are corn-based hit a 2 percent upper circuit after the company entered into an MoU with Vedant Starch with an approximate business value of Rs. 150 crores.
Price Action
With a market capitalization of Rs. 365.44 Crores, the shares of TBI Corn Limited were up by 2 percent touching a day’s high of Rs. 201.25 per share. The stock was in the upper circuit limit which is 2 percent higher from the previous closing price of Rs. 197.35 apiece. The stock has delivered a return of 1.64 percent over the past year and underperformed the Nifty Index.
What Happened
The movement in stock price was due to the company entering into a Memorandum of Association (MoU) with Vedant Starch Private Limited. This MoU is for contract manufacturing work to process maize and to produce other products including but not limited to Gluten, Starch, Wet Fiber, and Germ.
Vedant owns and is the operator of the processing plant situated in Sangli, which is presently non-operational due to working capital constraints.
TBI collaboration with Vedant for maize processing and other products. This MoU is signed for a three-year period. Throughout this period, the company expects to generate an estimated business volume of approximately Rs. 150 crores. The size of Capacity as per the MoU is a minimum of 2,000 metric tonnes per month.
About the Company
TBI Corn Limited was established in 2000. They specialize in manufacturing and exporting high-quality corn meal grits and other related products from Maharashtra. They focus on producing GMO-free and additive-free products which includes corn flour and flakes while catering to both domestic and international markets such as South Africa and the UAE.
With a commitment to quality and innovation, TBI Corn serves diverse sectors which include food processing and animal feed industries while establishing itself as a trusted name in the corn milling sector.
Financials & Ratios
Its Revenue from operations increased by 33.59 percent year on year from Rs. 70.34 Crores in H1FY24 to Rs. 93.97 Crores in H1FY25, accompanied by profits of Rs. 6.66 Crores to Rs. 7.52 Crores.
In the return ratios, the return on equity (RoE) in FY24 stood at around 33.89 percent, and the return on capital employed was around 24.57 percent. The debt-to-equity ratio stood around 1.45 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 56.47 percent in TBI Corn, Foreign Institutional Investors (FII) holding around 1.63 percent, Domestic Institutional Investors (DII) holding around 0.03 percent, and the public holding around 41.88 percent. Ace Investor Ashish Kacholia holds around 4.22 percent as of September 2024.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
