Multibagger stock reports 216% jump in YoY net profit. Should you buy?
Premium- Multibagger stock: The BSE listed company has reported YoY jump in net income from ₹3.49 crore to ₹11.03 crore in June 2022 quarter
Multibagger stock: Investing in small-cap stock is highly risky as it gives maximum deviation during a single trigger. However, high risk investors prefer to invest in penny stocks as well provided they are assured about the business model of the company and its fundamentals being reflected by its balance sheet. For such high risk investors, there is a piece of stock market news today.
Small-cap FMCG company Mishtann Foods has reported bumper 216 per cent year-on-year jump in its net profit in quarter ended June 2022. The FMCG company has reported 118 per cent YoY rise in sales in recently ended June 2022 quarter. According to stock market experts, the FMCG company has posted strong Q1 results and it may give strong upside moves once it breaks its upper hurdle placed at ₹12 per share levels.
Mishtann Foods share price outlook
"Mishtann Foods has posted robust Q1 results with substantial growth in profit margins. The company’s strategy and business model has benefited greatly by its recent investment and order book and is 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 12 in near term," said Ravi Singh, Vice President & Head of Research at Share India.
Speaking on Misahtann Foods share price technical outlook, Sumeet Bagadia, Executive Director at Choice Broking said, "The stock is currently trading in ₹7 to ₹11 per share range and it may give sharp upside moves once it sustains above ₹12 per share levels. Investors are advised to buy this stock either at around ₹7 per share levels or above ₹12 levels." The Choice Broking expert said that the stock may give some downside movement in near term and hence it's better to wait and enter at lower levels.
Echoing with Sumeet Bagadia's views, Manoj Dalmia, Founder at Proficient Equities said, "The OPM has increased in the recent quarters at an average of 9-10 per cent and the operating efficiencies have improved with ROCE and ROE at 38 per cent and 36.5 per cent. The stock is seeing some turnaround, investors can wait and check for consistency and then accumulate. The company has a huge export market also. With the government's thrust on agro sector, Mishtann is riding high on this sunrise sector."
Mishtann Foods Q1 results
In Q12FY23 results, the BSE listed FMCG company has reported huge 216 per cent YoY jump in net profit from ₹3.49 crore to ₹11.03 crore in quarter ended June 2022. Company's sales rose 118.73 per cent to ₹158.27 crore in the quarter ended June 2022 as against ₹72.36 crore during the previous quarter ended June 2021. In Q1FY23, Mishtann Foods Ltd has seen good response for Mishtann Salt, which had bagged several orders from major retail stores, and the company has successfully executed these orders and is receiving good response of its salt which has several health benefits.
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Mishtann Foods share price details
Current market capital of the small-cap stock is ₹442 crore and its trade volume on Tuesday was 1,09,08,279 on BSE, which is almost three times of its 20 days average trade volume of 36,43,706. This penny stock's 52-week high is ₹19.55 whereas its 52-week low is ₹1.94 per share. In last one year, it has surged from ₹3 to ₹8.84 apiece levels, logging near 195 per cent rise in this time horizon.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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