Mishtann Foods informs BSE about stake hike via open market purchase

Mishtann Foods in a regulatory filing with the BSE announced that its promoter Hitesh kumar Patel has hiked his stake in the company through open market purchase. In the latest tranche of picking up the stake, Patel bought 79,711 equity shares of the company, aggregating to Rs 7,18,196 at an average price of Rs 9 per share. Patel has been picking up shares in multiple tranches since 15 November, 2022 and is still buying on a regular basis, which increased his stake to 49.37 per cent in the company from 49.36 per cent earlier.

Earlier, Mishtann Food had announced plans to set up a 1,000 lilolitres per day (KLPD) grain-based ethanol manufacturing facility in Gujarat, likely commence the operations of the plant from the second quarter of 2024.

Mishtann Foods has informed that it has executed a Memorandum of Understanding (MoU) with the Government of Gujarat for setting up India's biggest Grain Based Ethanol project of 1000 KLPD in Gujarat.

Commenting on the development, Ravi Singh, Vice-President and Head of Research at Share India said, "Mishtann Foods has given robust sales figures and steady revenue growth throughout the quarters due to its sustainable business model. The positive outlook of the FMCG sector is well supporting the stock.  The company’s continuous investments, launches of new products and order book are expected to improve the financials further in coming quarters. Mishtann foods stock is showing strength on daily chart and the stock has potential to touch the levels of 11 - 12 in near term."

The proposed project is likely to incur a cost of Rs 2,250 to the company, with an estimated annual revenue projection of Rs 3,500 crore for the company.

The company is planning to set up its manufacturing facility in Dalpur village of Sabarkantha district of Gujarat (India).