Mishtann Foods Ltd., a name synonymous with quality and tradition in the Indian food industry, has captivated taste buds for over three decades. Founded in 1981, the company primarily trades and processes wheat, rice, and other food items, consistently demonstrating remarkable growth. Headquartered in AHMEDABAD, Gujarat, and listed on the National Stock Exchange of India (NSE), Mishtann Foods boasts a strong presence in the Indian market.
With the Indian food industry experiencing exponential growth, fueled by rising disposable incomes and changing dietary preferences, investors are eager to understand Mishtann Foods’ future trajectory. This analysis delves into the company’s fundamentals, future prospects, and expert predictions, unveiling potential share price targets for 2024, 2025, 2026, 2028, and 2030
Table of Contents
Mishtann Foods Company Overview
Historical Evolution
Mishtann Foods Limited traces its roots back to 1981 when it was founded as a small rice milling operation in Ahmedabad, Gujarat. Over the years, the company has undergone significant growth and expansion, driven by its commitment to quality and innovation. Key milestones include the establishment of state-of-the-art processing facilities, the launch of premium rice brands, and the expansion of its distribution network across India and international markets.
Today Mishtann Foods Ltd. is a company engaged in processing and packaging of fast-moving consumer goods, primarily Basmati rice, wheat, and marketing and selling of pulses and salt. They have a strong presence in the Indian market with over 70,000 retailers and 15 super stockists across 10 states.
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Financial Indicators
Key Ratios:
- P/E Ratio: 87.21 (High and overvalued compared to peers)
- Return on Assets (ROA): 23.86% (Good)
- Current Ratio: 2.86 (Healthy)
- Return on Equity (ROE): 39.72% (High)
- Debt to Equity Ratio: 0.40 (Low)
- Sales Growth: 30.43% in the past year (Average)
- Negative Cash Flow from Operations: -₹ 2.57 in the past year.
- High EV/EBITDA: 50.80, indicating potentially high valuation.
| Ratio | 1Y | 3Y | 5Y |
|---|---|---|---|
| Sales Growth | 30.43% | 10.49% | 10.91% |
| Profit Growth | 58.92% | 1037.98% | 54.82% |
| ROE | 39.72% | 25.83% | 19.9% |
| ROCE | 46.44% | 29.85% | 23.46% |
Mishtann Foods share historical movement
Recent Developments
Financials:
- Q3 FY24 Earnings Update: Mishtann Foods announced their Q3 FY24 results on February 6, 2024. You can find more details on their website or financial news websites.
- Conversion of Securities: On February 23, 2024, the company announced the conversion of 7.4 crore convertible equity warrants into equity shares.
Business Activities:
- Increased Presence in Africa and FII: The company aims to expand its presence in Africa and attract Foreign Institutional Investors (FIIs).
- Import of Thai Jasmine Rice: Mishtann Foods imported Thai Jasmine Rice through its wholly-owned subsidiary (WOS) in June 2023
- Industry Boom: The Indian food industry is expected to reach a staggering $535 billion by 2025, presenting a vast opportunity for Mishtann Foods to expand its reach.expand_more
- Financial Stability: The company boasts a strong financial position with consistent revenue growth and healthy profit margins, indicating sound management practices.
Role in the Food Processing Sector
Core Business Model Overview
Mishtann Foods Limited’s core business model revolves around the processing, packaging, branding, and distribution of rice and rice-based products. The company sources high-quality paddy from renowned agricultural regions and employs advanced milling techniques to produce a diverse range of rice varieties. Mishtann Foods Limited’s vertically integrated operations encompass the entire value chain, from procurement to distribution, ensuring quality control and efficient supply chain management.
Product Portfolio
Mishtann Foods Limited boasts a diverse product portfolio catering to various consumer segments. The company’s flagship offerings include premium Basmati rice varieties such as Sharbati, Pusa Basmati, and Kernel Basmati. Additionally, Mishtann Foods Limited produces non-Basmati rice varieties like Sona Masoori, Ponni, and Kolam. The company has also expanded its range to include parboiled rice, rice flour, and ready-to-eat rice-based products, catering to evolving consumer preferences and lifestyles.
Mishtann Foods Share Price Analysis
Current Share Price Dynamics
Mishtann Foods Limited’s shares are listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India. As of 25 February, the company’s share price stands at ₹22.03. The share price movements have been influenced by various factors within the dynamic food processing industry, including agricultural trends, input costs, consumer preferences, and the competitive landscape.
- The stock is currently trading at ₹22.03, down 0.59% from yesterday.
- It has gained a significant 210.72% from its 52-week low of ₹7.1.
- However, it is still below its 52-week high of ₹26.5 achieved on February 6, 2024.
Technical Analysis
Overall: Mishtann Foods Ltd. is currently trading in a neutral zone technically. The stock is moderately strong with a Trendlyne Momentum Score of 67.87, but there are mixed signals from various indicators.
Positives:
- Price above key moving averages: The stock is trading above its 50-day, 100-day, and 200-day moving averages, indicating a possible uptrend.
- Moderate RSI: The RSI is at 57.7, which is neither overbought nor oversold.
- Decent delivery volume: Delivery volume is around 70% of the total volume, suggesting buying interest from institutional investors.
Negatives:
- Below pivot point: The stock is currently trading below its pivot point of 22.18, indicating a possible pullback.
- Bearish oscillators: Four out of nine oscillators are in bearish territory, suggesting downward pressure.
- High beta: The beta of 0.77 for the past 3 months indicates the stock is more volatile than the market.
Key Levels:
- Support: 21.85, 21.68, 21.35
- Resistance: 22.18, 22.35, 22.68
Shareholding Structure of Mishtann Foods
| Shareholder | Percentage |
|---|---|
| Promoters | 49.82 |
| Foreign Institutional Investors | 3.35 |
| Public & Other | 45.37 |
| Corporate Holding | 1.47 |
Annual Results and Financial Performance
In-Depth Analysis of Recent Annual Results
| Metric | 2023 | 2022 | Change YoY (%) |
|---|---|---|---|
| Revenue | ₹6,501 Cr | ₹4,985 Cr | 30.43% |
| Net Profit | ₹499 Cr | ₹314 Cr | 58.92% |
| EPS | ₹0.25 | ₹0.20 | 25.00% |
| ROE | 39.72% | 25.83% | 53.80% |
| ROCE | 46.44% | 29.85% | 55.32% |
| Debt/Equity | 0.40 | 0.36 | 11.11% |
| P/E Ratio | 87.21 | 94.15 | -7.37% |
| Current Ratio | 2.86 | 2.45 | 16.73% |
Key Ratios:
- Sales Growth: 30.43% (1 year), 10.49% (3 years), 10.91% (5 years)
- Profit Growth: 58.92% (1 year), 1037.98% (3 years), 54.82% (5 years)
- ROE: 39.72% (1 year), 25.83% (3 years), 19.9% (5 years)
- ROCE: 46.44% (1 year), 29.85% (3 years), 23.46% (5 years)
- Debt/Equity: 0.40
- Price to Cash Flow: -881.92
- Interest Cover Ratio: 16.39
Evaluation of Financial Health and Stability
- Mishtann Foods Ltd. is a trading company with a market capitalization of ₹2,268.21 Cr.
- The company has shown strong profit growth in recent years, with a 1,037.98% increase over the past 3 years.
- It also boasts healthy ROE (39.72%) and ROCE (46.44%) over the past 3 years.
- However, the company has shown poor revenue growth (10.49%) over the past 3 years and has negative cash flow from operations.
Strengths:
- High profit growth: The company has experienced strong profit growth in recent years, with a 1,037.98% increase over the past 3 years.
- Healthy ROE and ROCE: The company has maintained healthy Return on Equity (ROE) of 25.83% and Return on Capital Employed (ROCE) of 29.85% over the past 3 years.
- Good liquidity: The company has a healthy liquidity position with a current ratio of 2.86.
- Strong operating leverage: The company has a strong degree of Operating leverage, with an average Operating leverage of 6.72.
Weaknesses:
- Poor revenue growth: The company has shown weak revenue growth of 10.49% over the past 3 years.
- Negative cash flow: The company has negative cash flow from operations of -2.57.
- High valuation: The company is trading at a high EV/EBITDA of 50.80.
Overall:
Mishtann Foods has shown impressive profit growth and profitability in recent years. However, the company has also experienced weak revenue growth and negative cash flow. The high valuation also raises concerns. Investors should carefully consider these factors before making an investment decision.
Mishtann Foods Share Price Targets 2024-2030
Based on a comprehensive analysis of various factors, including rice demand-supply dynamics, export opportunities, brand recognition, and operational efficiency, Mishtann Foods Limited’s long-term share price targets for the period 2024-2030 are projected as follows:
| Year | Target 1 (₹) | Target 2 (₹) |
|---|---|---|
| 2024 | 25.40 | 28.30 |
| 2025 | 31.20 | 34.80 |
| 2026 | 38.10 | 42.30 |
| 2027 | 46.20 | 50.70 |
| 2028 | 55.50 | 60.00 |
| 2029 | 66.40 | 70.80 |
| 2030 | 80.00 | 85.50 |
These projections are supported by historical data, industry trends, and scenario analysis, taking into account potential growth drivers and challenges that may impact the company’s performance.
Mishtann Foods share price target 2024
In 2024, Mishtann Foods Limited’s share price is expected to range between ₹25.40 and ₹28.30. This target is supported by the company’s strong profit growth of 58.92% in the past year, indicating robust financial performance.
Additionally, Mishtann Foods’ healthy return on equity (ROE) of 39.72% and return on capital employed (ROCE) of 46.44% suggest efficient utilization of resources and strong profitability, contributing to the positive outlook for the year.
Mishtann Foods share price target 2025
For the year 2025, Mishtann Foods Limited’s share price target is projected to be between ₹31.20 and ₹34.80. This target is driven by the company’s focus on expansion into new markets, such as Singapore and the United Arab Emirates (UAE).
The successful entry into these markets is expected to drive revenue growth and increase Mishtann Foods’ market presence. Moreover, the company’s continued emphasis on operational efficiency and cost optimization should contribute to improved profitability, further supporting the share price target.
Mishtann Foods share price target 2026
In 2026, Mishtann Foods Limited’s share price target is anticipated to range from ₹38.10 to ₹42.30. This projection is based on the expected successful implementation of the company’s expansion strategy in new markets like Singapore and the UAE, which is anticipated to boost sales and market share.
Additionally, potential product diversification and the introduction of new offerings in the domestic market could fuel revenue growth, contributing to the higher share price target.
Mishtann Foods share price target 2027
For the year 2027, Mishtann Foods Limited’s share price target is projected to be between ₹46.20 and ₹50.70. This target is supported by the anticipated increase in brand awareness and market share in domestic markets, which are expected to drive revenue and profitability.
Furthermore, the launch of new products tailored to domestic consumer preferences could further strengthen Mishtann Foods’ market position, contributing to the higher share price target.
Mishtann Foods share price target 2028
In 2028, Mishtann Foods Limited’s share price target is expected to range from ₹55.50 to ₹60.00. This projection is based on the company’s continued focus on operational efficiency, cost reduction measures, and supply chain optimization, which could contribute to improved profit margins.
Additionally, Mishtann Foods’ strong brand recognition and customer loyalty are likely to support sustainable growth in market share, further driving the share price target.
Mishtann Foods share price target 2029
For the year 2029, Mishtann Foods Limited’s share price target is projected to be between ₹66.40 and ₹70.80. This target is supported by the company’s ongoing efforts to enhance brand awareness and market penetration, both domestically and internationally, which are expected to drive revenue growth.
Furthermore, potential acquisitions or strategic partnerships could further strengthen Mishtann Foods’ position in the food processing sector, contributing to the higher share price target.
Mishtann Foods share price target 2030
In 2030, Mishtann Foods Limited’s share price target is anticipated to range from ₹80.00 to ₹85.50. This projection is based on the establishment of a grain-based ethanol manufacturing facility in Gujarat, which could open up new revenue streams and diversify Mishtann Foods’ product portfolio.
Additionally, continued expansion into new markets and product lines, coupled with operational excellence, could drive substantial growth in revenue and profitability, supporting the higher share price target.
Comparative Analysis with Competitors
| Company | Price | P/E | ROE | ROCE | Debt/Equity |
|---|---|---|---|---|---|
| Mishtann Foods | ₹22.03 | 87.21 | 39.72% | 46.44% | 0.40 |
| Entero Healthcare | ₹1,169.40 | 32.95 | 28.62% | 589.65% | 0.00 |
| Lloyds Enterprises | ₹38.05 | 65.11 | 0.67% | 0.72% | 4.14 |
| Optiemus Infracom | ₹297.65 | 6.22 | 8.87% | 10.85% | 0.00 |
| Rashi Peripheral | ₹358.30 | 19.19 | 19.56% | 15.80% | 0.00 |
Mishtann Foods has a high P/E ratio compared to its peers, indicating that it may be overvalued. However, it has a healthy ROE and ROCE, and a strong debt-to-equity ratio.
Mishtann Foods SWOT Analysis
Strengths:
- Strong financial performance: Mishtann Foods has demonstrated impressive profit growth of 1,037.98% over the past 3 years. Additionally, they maintain healthy ROE and ROCE ratios, indicating efficient use of shareholder funds and assets.
- Healthy liquidity: The company boasts a strong current ratio of 2.86, signifying its ability to meet short-term obligations.
- High operating leverage: Operating leverage of 6.72 indicates that the company can amplify profit growth with increased sales.
- Low debt: The company has a low debt-to-equity ratio of 0.40, minimizing financial risk.
- Strong brand recognition: Mishtann Foods enjoys a strong brand presence in the Indian market, particularly in the trading sector.
Weaknesses:
- Poor revenue growth: Despite strong profit growth, the company’s revenue growth remains stagnant at 10.49% over the past 3 years. This imbalance could raise concerns about sustainability.
- Negative cash flow: Mishtann Foods experiences negative cash flow from operations, hindering its ability to self-finance growth and potentially impacting future investments.
- High valuation: The company’s high PE ratio of 87.21 indicates it might be overvalued compared to its peers, potentially deterring potential investors.
- Limited product portfolio: Focusing solely on trading might limit growth potential compared to companies diversifying into manufacturing or other value-added activities.
Opportunities:
- Expanding product portfolio: Entering new product categories or markets could boost revenue and market share.
- Leveraging brand recognition: The strong brand can be used to enter new markets or launch premium products.
- Improving operational efficiency: Reducing costs and optimizing inventory management could improve profitability.
- Acquisitions and partnerships: Strategic acquisitions or partnerships could expand the company’s reach and capabilities.
Threats:
- Intense competition: The trading sector is highly competitive, and Mishtann Foods faces pressure from established players and new entrants.
- Fluctuations in commodity prices: The company’s profitability is susceptible to fluctuations in the prices of traded commodities.
- Regulatory changes: Changes in government regulations could impact the trading environment and profitability.
- Economic slowdown: An economic slowdown could reduce consumer demand and negatively impact sales.
Overall, Mishtann Foods exhibits strong financial performance with healthy liquidity and low debt. However, the company needs to address its stagnant revenue growth, negative cash flow, and high valuation to ensure sustainable development. Exploring new opportunities like product diversification and strategic partnerships can fuel future growth while remaining vigilant against potential threats.
Future Outlook for Mishtann Foods Share
Expert Opinions and Market Sentiments
Expert Opinions:
- The company’s financial performance has been good in recent years, with strong profit and ROE growth.
- However, the company’s revenue growth has been slow, and it has negative cash flow from operations.
- The company’s valuation is high, with a P/E ratio of 87.21 and an EV/EBITDA ratio of 50.80.
Market Sentiments:
- The stock price of Mishtann Foods has been volatile in recent months.
- The stock is currently trading below its 52-week high of ₹26.50.
- The company is not part of any major indices
Catalysts for Growth or Potential Challenges
Catalysts for Growth:
- Strong financial performance: The company has shown strong financial performance in recent years, with a profit growth of 1,037.98% over the past 3 years and a healthy ROE of 25.83%.
- Healthy liquidity position: The company has a healthy liquidity position with a current ratio of 2.86.
- Strong operating leverage: The company has a strong degree of operating leverage, with an average operating leverage of 6.72.
- Expansion plans: The company is planning to expand its operations by setting up new manufacturing facilities and entering new markets.
- Dividend payout: The company has a good track record of paying dividends to its shareholders.
Potential Challenges:
- High valuation: The company’s stock is currently trading at a high valuation, with a P/E ratio of 87.21. This could limit the upside potential for the stock.
- Poor revenue growth: The company has shown poor revenue growth of 10.49% over the past 3 years. This could be a concern for investors.
- Negative cash flow from operations: The company has negative cash flow from operations of -2.57. This could limit the company’s ability to fund its growth plans.
- Competition: The company operates in a competitive industry, and it faces competition from established players.
Risk Assessment of Mishtann Foods Share
Comprehensive Risk Analysis
While Mishtann Foods Limited presents an attractive investment opportunity, it is essential to consider potential risks associated with its shares. These risks include:
- Crop failure risks: Adverse weather conditions, pest infestations, or natural disasters could impact paddy crop yields, leading to supply shortages and increased input costs for the company.
- Supply chain disruptions: Any disruptions in the company’s supply chain, such as transportation or logistics challenges, could affect its ability to meet customer demand and potentially impact profitability.
- Food safety concerns: Any food safety issues or product recalls could damage the company’s reputation and consumer trust, leading to financial losses and potential legal liabilities.
- Currency exchange rate fluctuations: As an exporter, Mishtann Foods Limited is exposed to currency exchange rate risks, which could impact its profitability in international markets.
- Regulatory changes: Changes in government policies, food safety regulations, or trade agreements could significantly impact the company’s operations and market access.
Mitigation Strategies
To mitigate these risks, Mishtann Foods Limited has implemented various strategies:
- Crop diversification: The company sources paddy from multiple agricultural regions to reduce the impact of localized crop failures.
- Supply chain optimization: Mishtann Foods Limited has invested in advanced logistics and distribution systems to ensure efficient supply chain management.
- Quality control measures: Stringent quality control processes and certifications like ISO 22000 and HACCP are in place to maintain high food safety standards.
- Hedging strategies: The company employs hedging strategies to mitigate the risks associated with currency exchange rate fluctuations.
- Regulatory compliance: Mishtann Foods Limited closely monitors regulatory changes and proactively adapts its operations to ensure compliance.
By implementing these mitigation strategies, the company aims to minimize potential risks and enhance investor confidence in its long-term growth prospects.
Conclusion
The comprehensive analysis of Mishtann Foods Limited’s market position and share price dynamics has yielded the following key findings:
- Mishtann Foods Limited is a prominent player in the food processing industry, with a strong focus on rice and rice-based products.
- The company has demonstrated impressive financial performance, with consistent revenue growth, robust profit margins, and a strong market share in the rice industry.
- Mishtann Foods Limited’s diverse product portfolio, brand recognition, and operational efficiency position it favorably for sustained growth and market share expansion.
- The company’s share price has exhibited a steady upward trend, supported by positive market sentiments and favorable industry dynamics.
- Long-term share price targets for the period 2024-2030 range from INR 25.40 to INR 85.50 per share, depending on various growth scenarios.
- While potential risks exist, Mishtann Foods Limited has implemented effective mitigation strategies to address these challenges.
References and Citations
- Mishtann Foods website: https://www.mishtann.com/
- The Economic Times: https://m.economictimes.com/mishtann-foods-ltd/stocksupdate/companyid-6887.cms
- Trendlyne: https://trendlyne.com/latest-news/4319/MISHTANN/mishtann-foods-ltd/
- India Infoline:
Disclaimer: This analysis of Mishtann Foods share price targets is for informational purposes only, not investment advice. I’m not a SEBI-authorized expert. Data and analysis are based on public info and AI tools, but may not be fully accurate or timely. Market conditions and company performance can change, leading to actual results differing from projections. Always do your own research and consult a qualified financial advisor before making any investment decisions