The shares of this microcompany gained up to 7 percent from its intraday low after the company its subsidiary acquired a prime land and building in Gujarat to establish a cutting-edge manufacturing facility.
Proventus Agrocom Ltd has a market capitalization of Rs 638.87 crore, the shares were trading at Rs 1,860.00 per share increasing around 6.25 percent as compared to the previous closing price of Rs 1,750.55 apiece.
Reason for rise:-
Today, the company shares have seen a bullish movement after Proventus Agrocom Ltd announced that Prov Foods Private Limited, a subsidiary of the company, has acquired a prime land and building in Gujarat to establish a cutting-edge manufacturing facility.
Furthermore, this new cutting-edge facility will be dedicated to processing and packaging, with activities scheduled to begin by the end of the year. The unit, which spans over 180,000 square feet, is intended to improve the company’s manufacturing capabilities by providing a fourfold increase in capacity. However, once the facility is operational it will produce up to 800,000 units per day.
Moreover, the total investment for this project is approximately Rs. 12 crores, financed through a combination of term loans and internal accruals. This advanced facility aligns with the company’s vision of achieving Rs. 1,000 crores in revenue for the Prov Group by FY 2028.
Financial Analysis:-
Looking forward to the company’s financials, Proventus Agrocom Ltd.’s revenue magnified by 47 percent from Rs 201 crore in H1FY24 to 296 crore in H2FY24. During the same period, net profits zoomed by 150 percent from Rs 2 crore to Rs 5 crore.
Capacity Expansion & Future Outlook:-
The company is planning for capacity expansion from 1.25 lakhs to 1 million pouches per day by FY28, investing Rs 15-18 crores in capex over 24 months to expand production facility.
The company is maintaining profitability, and expanding reach in the general trade market while improving margins through product mix changes and strategic investments in higher-margin products.
Recent Partnership:-
The company has partnered with Chef Sanjeev Kapoor as a brand ambassador and strategic advisor, aiming to enhance its market presence. It plans to expand production capacity to meet future revenue targets while increasing its focus on the general trade market for growth opportunities.
Company profile:-
Proventus Agrocom Limited is an India-based integrated health food brand with a presence in a range of dry fruits, nuts, seeds, berries, and healthy snacking products across the value chain. The Company is primarily engaged in the business of a variety of agro-commodities across the commodity value chain.
Written by:-Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
