In Thursday’s trading session, the shares of one of the leading FMCG stocks specialized in manufacturing and distribution speciality fats and butter and exotic products, jumps upto 3 percent following following a block deal of a 3 percent stake involving LIC, Aditya Birla, and Bank of India mutual funds
Price action
With a market capitalization of 6,497.49 Crores on Thursday, the shares of Manorama Industries limited rose by 3.2 percent making a high of Rs 1,124.90 compared to its previous closing price of Rs 1,086.95.
What happened
Manorama Industries Ltd is an Indian company engaged in the manufacturing and distribution of a wide range of products, primarily in the FMCG and industrial sectors.
The company had a block deal in which LIC Mutual Fund bought 7.27 lakh shares, representing a 1.22 percent stake, and Bank of India Mutual Fund acquired 2.7 lakh shares, which represents a 0.45 percent stake, at Rs 1,100 per share. At the same buying price, Aditya Birla Sun Life Mutual Fund purchased 8.18 lakh shares, representing a 1.37 percent stake.
About the company
Manorama Industries Ltd is a prominent Indian company primarily engaged in the manufacturing and distribution of specialty fats, butter, and exotic products derived from the seeds of Sal, Mango, Shea, Kokum, Mowrah, and more. The company has a strong presence in the FMCG sector and is known for its high-quality edible oils, vanaspati, and various packaged foods.
The company focuses on producing products that meet the highest standards of quality and safety, ensuring consumer satisfaction across different segments. Manorama Industries Ltd also offers products for both consumer and industrial applications, catering to the needs of diverse markets.
Q2 & H1 FY25 Financial Highlights
The Company’s revenues grew by 66 percent YoY growth to Rs. 195.4 crores in Q2FY25 owing to commercialization from the new fractionation capacity and EBITDA has surged by 144.5 percent YoY reaching Rs. 45.2 crores in Q2FY25 along with it EBITDA margin expanded by 743 bps YoY at 23.1 percent in Q2FY25 which was attributed to economies of scale and operational efficiencies.
Industry Edge
Manorama Industries Ltd is the #1 Indian exporter of Sal and Mango-based specialty fats and butter. It holds the distinction of being the #1 Sal fat manufacturer in the world. The company is a leading global manufacturer of CBE (Cocoa Butter Equivalent) and exotic specialty fats and butter, produced from a variety of seeds, including Sal, Mango, Shea, Kokum, and Mowrah. With its focus on high-quality, sustainable products, Manorama Industries has established a prominent position in the international market.
Financials
The company’s revenue rose by 66 percent from Rs 119.83 crore to Rs 198.9 crore in Q2FY24-25. Meanwhile, Net profit grew from Rs 8.61 crores to Rs 26.71 crore during the same period.
Key Financial ratios
Manorama Industries Ltd has an impressive Return on Equity (RoE) of 15.9 percent and a Return on Capital Employed (RoCE) of 14.25 percent. Furthermore, the company’s debt-to-equity ratio is 0.98.
Written by Sridhar J
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