Shares of this microcap company clocked 5 percent upper circuit in Tuesday’s trading session after they set growth targets for 2024. In six months, the shares have delivered more than 50 percent returns to its shareholders.
With a market capitalisation of Rs. 421 crores, the shares of Kings Infra Ventures Ltd started Tuesday’s trading session on a higher note at Rs. 172.10 compared to its previous Rs. 170.35. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 178.85 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced growth targets for 2024. Previously, the company had signed a long-term MoU with the Shanghai-based trading Company, a joint venture of Japan Food Services Company, for launching the KINGS RISHIFU brand shrimps in the Chinese market in a strategic partnership with RSF, Shanghai.
The initial orders were for 100 containers worth approximately Rs. 100 crores from RSF Trading company, for which Kings Infra aims to scale up to 200 containers for the next financial year. Moreover, the association focuses on the high-end market with premium products and has the potential to generate Rs 100 crores in revenue during the first year and Rs. 200 crores per year when fully implemented.
Furthermore, it had signed an MoU with JH & Company representing Ocean World Ventures one of the leading in the US who is a regular importers and distributor of seafood products. Both companies came together to start a business with about 5 to 8 containers per month, for which Kings Infra has planned to scale up the business to the minimum level of 100 containers per year.
In addition, the company announced the launch of “Kings Bento,” a line of ready-to-eat seafood delicacies, inspired by the Japanese concept of Bento. The product is developed in association with the Central Institute of Fisheries Technology (CIFT), which will be available in Kerala from January 2024.
To meet the upcoming expansion and marketing plans, the company is issuing preferential allotment of equity shares of Rs. 17 crores and also secured a working capital of up to Rs 40 crores from Punjab National Bank.
Looking into the company’s financial statement, the revenue increased marginally by 1.3 percent from Rs. 20.96 crores in the June quarter to Rs. 21.23 crores during the September quarter. On the other hand, the net profits increased by 3 percent from Rs. 2.15 crores to Rs. 2.21 crores during the same timeframe.
Headquartered in Ernakulam, Kings Infra Ventures was incorporated in 1987. The company is engaged in aquaculture farming, seafood processing, international trade of marine products, aquaculture consultancy, food-related infrastructure development and domestic marketing and supply of retail packed marine products.
Written By Vaibhav Patil
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