The company has signed a Memorandum of Understanding (MoU) with the Gujarat government for the facility touted to be India’s biggest grain-based ethanol project. It is expected to be operational from the second quarter of CY2024.
The packaged foods player is planning to set up the facility at Dalpur village in Gujarat’s Sabarkantha district with a capacity of 1,000 kilolitre per day (KLPD).
Following the update, shares of Ahmedabad-headquartered
jumped 3 per cent to Rs 10.30 on Thursday, before giving up its gains partially.
The proposed project is likely to incur a cost of Rs 2,250 crore to the company, with an estimated annual revenue projection of Rs 3,500 crore.
BSE-listed Mishtann Foods engaged in the production and marketing of a large variety of rice pulses. rock salts and other edible products of daily need.
The company’s recent investment, new product launches and order book are expected to further improve the financials in the coming quarters.
In accordance with the ‘Atmanirbhar Gujarat, Atmanirbhar Bharat’ initiative of the government, the proposed plant would be used to produce ethanol. Besides, the national petroleum policy of adding ethanol as an additive will reduce the burden on crude oil imports.
As inflation still remains a matter of uncertainty, it’s advisable to invest in inflation-hedged assets like commodities and cyclical FMCG stocks as they generally give good returns when prices are higher, said Ravi Singh, Vice-President & Head of Research, Share India
“Mishtann Foods diversified business model in the FMCG sector is well supporting its revenue growth and profitability. The financials are expected to improve in upcoming quarters on account of new investments and robust order book,” he said while decoding the move to Rs 11.5-12 in the near term from daily charts.
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