A Small-cap ice cream company with 300 Stock Keeping Units (SKUs) with a market capitalization of Rs 2,266 crores surged 18% in Monday’s session, reaching a 52-week high price of Rs 3,294.65 per piece. At 3:25 p.m., Vadilal Industries Ltd shares were trading at Rs 3,175.50, up 14.49 percent. The stock price increased following the report that Bain Capital is looking to buy a stake in the company.
According to a CNBC report, shares of ice cream manufacturer Vadilal Industries jumped more than 18% in intraday trade on Monday after reports that US-based investment company Bain Capital is seeking to buy a controlling stake in the combined entity of Vadilal Industries and Vadilal Enterprises. However, no formal communication has been received from the business.
In the recent three months, the stock has increased by 55 percent, ranging from Rs 2,026 to current levels, and increased by 50 percent in the previous year.
Vadilal Industries Ltd manufactures ice cream, frozen desserts, and candy, as well as processes and exports processed food items.
In FY 22-23, profitability ratios grew significantly, with ROE at 24.23 percent and ROCE at 26.02 percent, while the company’s margins expanded, with the net profit margin at 9.10 percent and the operating profit margin at 13.84 percent.
Revenue grew by 51 percent year on year to Rs 1,057 crore in fiscal year 22-23. Similarly, net profit increased by 118 percent to Rs 96 crore.
In fiscal year 22-23, the promoters controlled 64.73 percent of the company, while individual investors owned a 35.25 percent stake.
Written by Omkar Chitnis
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