The shares of the micro-cap company hit 5 percent upper circuit of Rs 132.25 apiece after the company signed a memorandum of understanding with Africa Negoce Industries (ANI).
With a market capitalization of Rs 54.10 crore, the shares of Prospect Commodities Ltd were trading at Rs 132.25 per share, increasing around 5 percent as compared to the previous closing price of Rs 126.00 apiece.
According to the company filing, Prospect Commodities Ltd has entered into a partnership by signing a memorandum of understanding with Africa Negoce Industries (ANI) to export and supply Natural Cashew Kernel.
The overall trade value of this MOU surpasses $4 million, and it will last until March 25, with the goal of strengthening the supply chain for raw cashew nuts and cashew husk/pellet. The contract entails the following commitments: First, 3000 metric tons of raw cashew nuts are expected to arrive by March 2025. Second, 5000 Metric Tons of Cashew Husk/Pellet: Receive this quantity within the same period.
Mr. Vimal Mishra, Managing Director of Prospect Commodities Limited, underscores the significance of the expanded partnership with ANI, emphasizing mutual confidence and benefits. This alliance solidifies their industry presence, fostering collaboration toward shared objectives. For Prospect Commodities, it signifies trust in ANI and commitment to product consistency. Simultaneously, it presents ANI with market expansion opportunities. The partnership establishes a foundation for long-term success, ensuring steady supply and structured payments. Overall, it represents a pivotal step toward mutual growth in the cashew industry.
Looking into Prospect Commodities Ltd’s performance, revenue increased by 55 percent from Rs 7.71 crore in H2FY23 to Rs 12.01 crore in H1FY24. During the same time frame, net profit increased by 32 percent from Rs 0.53 crore to Rs 0.70 crore.
The company reported return ratios in the recent financial year with a return on equity (ROE) of 96.9 percent and a return on capital employed (ROCE) of 9.23 percent. The company’s stock has delivered multi-bagger returns of 104.25 percent in six months.
Prospect Commodities Limited is an India-based firm that trades cashews in the B2B market. The company solely sells cashews to wholesalers in the state of Gujarat. The cashews are packaged in a container weighing 10 kg.
Written by:- Abhishek Singh
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