FMCG stock engaged in the business of providing processed agricultural products, frozen snacks, and traditional regional food and many more hit a 20 percent upper circuit in the day’s trade upon receiving USFDA approval for its products.
Price action
With a market capitalization of Rs. 193 Crores, the shares of Tanvi Foods (India) Limited hit a 20 percent upper circuit at Rs. 167.90 per equity share, from its previous day’s close price of Rs. 139.95.
What happened
Tanvi Foods (India) Limited has received food facility approval from the U.S. Food & Drug Administration (USFDA) under the Federal Food, Drug, and Cosmetic Act, for the manufacturing of its ready-to-cook, frozen snacks and other food items from its new state-of-the-art manufacturing unit at Seetharampuram, Andhra Pradesh.
Earlier, the products produced and procured by Tanvi Foods Limited were exported and sold majorly in Australia, Canada, and the United States under a private label arrangement with major foreign players.
Following the above approval it will export products under its own brand name with better margins, facilitate exporting its products to many other countries including the United Kingdom, Middle East, and African countries, and also enhance the credibility of the products in the domestic market.
About the company
Tanvi Foods (India) Limited is engaged in the business of providing processed agricultural products, frozen snacks, traditional regional food, and many more, in India and overseas under the brand names Frozen King’s, Corn Club, and others.
Its products include Frozen Dal & Curries, Frozen Vegetable Chutneys, Sweet Corn, Green Peas, Mixed Vegetable, Ivy Gourd, Carrot, Drumstick, Tomato Dal, Ridge Gourd Curry, Mango Dal, Bottle Gourd Curry, Pachi Pulusu, Onion Samosa, Paneer Samosa, Corn Spring Roll, Shanghai Roll, Irani Samosa and many others.
Financials and Ratios
Its revenue from operations grew by 0.97 percent from Rs. 80.52 Crores in FY23 to Rs. 81.30 Crores in FY24, accompanied by profits of Rs. 42 Lakhs to Rs. 41 Lakhs.
In terms of return ratios, it has reported a return on equity (ROE) of 1.41 percent and a return on capital employed (ROCE) of 2.24 percent. It has reported a debt-to-equity ratio of 0.42.
Written by: Bharath K.S
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