Penny stock jumps more than 9% after FIIs increase stake by 1.28%; Check the details

Shares of Mishtann Foods jumped 9.6% on Wednesday’s intraday trades to reach a high of ₹ 7.78 per share on the Bombay Stock Exchange (BSE) amid multiple factors driving the rally. The company wants to expand its footprint in Africa and has plans to launch new products. Moreover, FIIs increased their stake in the company, according to an exchange filing. 

According to the data available on the BSE, Nomura Singapore has increased its stake to 1.28% or 1,28,25,854 in the homegrown FMCG player. 

Mishtann Foods, which primarily deals in varieties of Basmati Rice, is looking forward to introducing new products for domestic markets, like free-flow iodized salt, crystal salt and rock salt. In fact, it has ventured into new markets like North Eastern India, and it expects its top line to rise with these positive actions. 

About a month ago, the company announced that it had incorporated an owned subsidiary company named “Grow and Grub Nutrients FZ – LLC” in the United Arab Emirates (UAE). It proposes to focus on international trade with increased exposure in various untapped markets. In addition, it is looking to take advantage of the increased demand for Rice across the Middle East and Africa. This subsidiary aims to penetrate the markets of Africa in addition to its existing market. 

Mishtann Foods’ 100,000 metric tonne per annum rice processing facility is conveniently situated near Ahmedabad, in Gujarat, India. It is in close proximity to ports, giving it a cost advantage for the export market. 

The company offers a wide range of agricultural products, including rice, wheat, spices, and pulses. It claims that all of its products are grown using environmentally friendly farming practices and carefully processed and packaged to preserve their freshness and nutritional value. 

Mishtann Foods is a penny stock with a market capitalization of ₹ 710 crores. It has a return on equity of 36.72% and an ideal dividend yield of 0.33. Its shares were trading at a price-to-earnings ratio (P/E) of 14.28, which is lower than the industry P/E of 21.63, indicating that it might be undervalued as compared to its peers. 

Written By Simran Bafna 

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