The share price of this Micro-Cap recently listed food processing firm gained by 7 percent to reach an Intraday high of Rs 220.0 per share on Thursday following the sale of 50 franchises by its subsidiary, Nanogen Agrochem Pvt Ltd.
With a market capitalization of Rs 118 crores, the shares of Mayank Cattle Food Ltd went up by 7 percent, trading at Rs 217.05 a piece on Thursday’s morning session.
What happened: According to Mayank Cattle Food’s stock exchange filings, the Mayank cattle food Ltd announced that its subsidiary Mayank cattle food Ltd “Nanogen Agrochem Private Limited” which is in the business of Agrochemicals and Fertilizer business has sold 50 franchises as a part of its capital expansion plans.
Why it Matters: The filings also mention that this strategic move will enhance Mayank Cattle’s market presence and contribute significantly to the revenue growth of its subsidiary. Also, the sale of these franchises aligns with Mayank Cattle Food’s long-term goals of expanding its presence in more areas and leveraging its brand strength across various regions.
Additionally, Mayank Cattle Foods has also mentioned through its stock exchange filings that various business operations of Nanogen Agrochem Private Limited will be carried out through their franchises.
Financials: Reviewing the financials of Mayank Cattle Food Ltd on a year-on-year basis, the revenues declined by 6.1 percent from Rs 309 crores in FY23 to Rs 290 crores in FY24. In the same time frame, the net profits increased from Rs 1 crore to Rs 3 crore demonstrating a 200 percent increase.
Ratios: As for the return ratios in the year 2024, it has reported a Return on equity (ROE) of 11.27 percent and a return on capital employed (ROCE ) of 19.72 percent. It has also reported a debt-to-equity ratio of 1.31 times for the same period.
Share price: The shares of Mayank Cattle Food Ltd have generated more than 78 percent returns in just 4 months since its listing in February 2024. Mayank cattle food Ltd’s listing price was at Rs 108 per share and the minimum lot size for an application was 1200 Shares.
Shareholding: As of March 2024, the promoters hold a 65 percent stake while the remaining 35 percent is held by the public.
About Mayank cattle food Ltd: Incorporated in 1998, Mayank Cattle Food Limited is a food oil company engaged in the manufacturing of cattle food, animal food, cattle food cake, and edible oils. Mayank has a dominant market share in its industry catering to a diverse customer base and an extensive network of dealers.
Written By Zahal
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