The shares of this micro-cap stock hit 20 percent circuit of Rs 84.98 apiece after the company announced the setting up of a new pulses processing unit at Surat in the State of Gujarat.
With a market capitalization of Rs 287.32 crore, the shares of Uma Exports Ltd were trading at Rs 84.98 per share, increasing around 19.99 percent as compared to the previous closing price of Rs 70.82 apiece.
According to the company filing, Uma Exports Ltd announced the setting up of a new pulses processing unit at Green Industries Park Wada Gau (Village) Opposite Diamond Iconic, Sachin Navsari Road, Surat, Gujarat, for processing of all varieties of pulses.
Furthermore, the unit is recommended to be established either within the firm or as a wholly-owned subsidiary firm, taking into account legal requirements and economic benefits. The planned facility will have an installed capacity of 50,000 TPA.
Additionally, the authorized project cost is Rs. 22.00 crores. The unit is planned to be operating by March 2025. The planned unit will signal the company’s debut into the industry of manufacturing/processing food grains, in addition to its current trading operations.
Looking into the company’s performance, Uma Exports Ltd’s revenue decreased by 15 percent from Rs 337.37 Crore in Q2FY23 to Rs 285.84 Crore in Q2FY24. During the same period, net profits decreased by 95 percent from Rs 8 crore to Rs 0.33 crore.
The Indian agriculture sector is expected to grow to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth biggest, with retail accounting for 70% of sales. According to the First Advance Estimates for FY23 (Kharif alone), the country’s total food grain output is estimated at 149.92 million tonnes.
Uma Exports Limited trades and markets agricultural produce and commodities such as sugar, spices like dry red chilies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum, and tea, pulses, and agricultural feeds like soybean meal and rice bran de-oiled cake.
Written by:- Abhishek Singh
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