Share price of this micro-cap stock hit a 5 percent upper circuit at Rs. 88.11 on BSE in the trading session of Monday after the company announced a strategic expansion.
With a market capitalisation of Rs. 198.2 crores, the share price of Chatha Foods Limited opened at Rs. 86.95 on Monday, compared to its previous closing price of Rs. 83.92.
Chatha Foods IPO opened for subscription on March 19 this year and closed on March 21. With a face value of Rs. 10, the issue’s price band was set between Rs. 53 and Rs. 56 per share. So far, the company has delivered 14.95 percent of positive returns.
According to recent regulatory filings with the BSE, Chatha Foods Limited announced a strategic expansion into North India’s Quick Service Restaurant Market.
In order to satisfy the diverse tastes of North India’s Quick Service Restaurant (QSR) market, Chatha Foods Limited announced the launch of its vegetarian range.
With a wide selection of delicacies, Chatha Foods Limited is set to transform the vegetarian dining and snacking experience across the region.
In a strategic move to enter the market, Chatha Foods Limited is making a concerted effort to find new distributors in key regions within North India. The company’s initial focus is on Punjab, Himachal, Delhi NCR, Haryana, UP, and Rajasthan.
Chatha Foods Limited plans to work with 40+ additional distributors throughout the region to support this expansion. The newly introduced vegetarian range will be heavily promoted and distributed to small and medium-sized QSR establishments by these distributors.
In terms of financials, the revenue from operations of Shukra Pharma increased by 34.5 percent YoY from Rs. 87 crore in FY21-22 to Rs. 117 crore in FY22-23, accompanied by an increase in net profit by 100 percent to Rs. 2 crore in FY22-23 from Rs. 1 crore in FY21-22.
Founded in 1997, Chatha Foods Limited is one of the recognised frozen food processor in India, serving top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other players in the HoReCa (Hotel-Restaurant-Catering) segment.
The company is also among one of the leading frozen and ready-to-eat processed meat products manufacturers in India.
Written by Shivani Singh
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