Mukka Proteins share price target 2024, 2025, 2026 2028, 2030

Mukka Proteins Limited, established in 2003, has emerged as a prominent player in the Indian marine protein products industry. Headquartered in Kannada, India, the company boasts a strong legacy in the Indian marine industry, spanning over five decades. Mukka Proteins has established itself as one of India’s most notable steam-cleaned fishmeal plants, catering to the diverse needs of the animal feed and fertilizer industries.

Given the growing demand for sustainable and efficient protein sources, investors are keenly interested in understanding Mukka Proteins’ potential growth trajectory. This analysis delves into the various factors influencing the company’s share price, aiming to provide informed predictions for the upcoming years (2024-2030).

Mukka Proteins Company Overview

Historical Evolution

Mukka Proteins, established in 2003, has evolved into a leading Indian manufacturer of fish protein products.

Growth and Recognition (2013-2020):

Earned recognition from the Marine Products Export Development Authority (MPEDA) for several consecutive years, highlighting its consistent performance.
Expanded its product portfolio to include fish soluble paste, catering to the growing aqua feed, poultry feed, and pet food industries.
Consolidated its position as the largest exporter of fish oil and meal from India in FY20.

Recent Advancements (2021-Present):

Witnessed significant revenue growth, nearly doubling sales in the last two years.
Experienced a surge in net profits, with margins exceeding 3.5% in recent years.
Pioneered the commercialization of insect meal and oil as an alternative protein source for animal feed, showcasing its commitment to innovation and sustainability.
Filed a Draft Red Herring Prospectus (DRHP) in June 2023, paving the way for a potential Initial Public Offering (IPO).

Mishtann Foods share price target

Financial Indicators

Profitability:

Profit After Tax (PAT):
- Increased by 84.07% from FY 2022 to FY 2023 (₹39.42 Cr vs ₹21.42 Cr).
- Profit margin has been increasing over the past few years.
Earnings Per Share (EPS):
- ₹0.18 in FY 2023, showing an upward trend compared to previous years.

Valuation:

Price to Earnings Ratio (P/E Ratio):
- Upper price band of ₹28 per share results in a P/E ratio of 14x based on FY 2022 EPS.
- This is lower than the industry average P/E of 26.29x, potentially indicating a slight undervaluation.

Liquidity:

Subscription: As of March 1, 2024, the IPO was subscribed 7.07 times, indicating strong investor interest.

Debt:

The company’s debt levels appear to be manageable, with borrowings decreasing from ₹14.35 Cr in FY 2019 to ₹0.27 Cr in FY 2023.

Recent Developments

February 28, 2024: The company’s IPO opened for subscription, with a price band of ₹26 to ₹28 per share. [CNBC TV18, Mukka Protein IPO Opens For Subscription On Feb 28 | N18S | CNBC TV18]
March 4, 2024: The subscription window for the IPO closed.
Target: The company aims to raise ₹224 crore through a complete fresh issuance of shares.

Role in the Food Processing Sector

Mukka Proteins plays a significant role in the food processing sector by providing essential ingredients for animal feed production.

Fishmeal and Fish Oil: These are their primary products, made from processing leftover fish parts from the seafood industry that would otherwise be discarded. Fishmeal and fish oil are rich in protein, vitamins, and minerals, making them crucial components of balanced and nutritious diets for various animals, including:
- Fish Meal
- Fish Oil
- Fish Soluble Paste

Mukka Proteins is:

A leading player in the Indian fishmeal and fish oil industry: They contribute 45-50% of the estimated industry revenue in India .
A prominent global exporter: Their products reach over 10 countries worldwide.

As of today, March 3, 2024, Mukka Proteins Ltd. is not yet listed on any stock exchange. The company’s IPO closed on March 4, 2024, and the share allotment is expected on March 5, 2024. The listing date is set for March 7, 2024, which is when we will be able to see the company’s share price dynamics.

Annual Results and Financial Performance

In-Depth Analysis of Recent Annual Results

Financials:

Revenue: Mukka Proteins’ revenue increased by 49.4% from ₹692.89 crore in FY2022 to ₹1,066.40 crore in FY2023. This significant growth indicates strong demand for the company’s products in the animal protein industry.
Profitability: The company’s net profit also witnessed a substantial rise of 98.5% from ₹19.82 crore in FY2022 to ₹39.42 crore in FY2023. This growth reflects improved operational efficiency and cost management.
Profitability Ratios: The company’s Earnings Per Share (EPS) increased from ₹0.09 in FY2022 to ₹0.18 in FY2023, indicating a significant improvement in profitability per share.

Balance Sheet:

Equity: Mukka Proteins’ equity capital increased from ₹22.00 crore in FY2022 to ₹22.22 crore in FY2023. This marginal increase suggests that the company has not been reliant on significant external equity funding for its growth.
Debt: The company’s borrowings have decreased from ₹3.04 crore in FY2022 to ₹0.27 crore in FY2023. This significant reduction in debt reflects a strong financial position and improved debt management.
Current Ratio: The company’s current ratio, which measures its ability to meet short-term obligations, has improved from 1.76 in FY2022 to 1.14 in FY2023. While a lower current ratio can raise concerns about short-term liquidity, it is important to note that the company’s debt levels have also decreased significantly, mitigating potential risks.

Cash Flow:

Operating Cash Flow: Mukka Proteins’ operating cash flow has turned positive in FY2023, reaching ₹55.10 crore compared to a negative cash flow of ₹15.30 crore in FY2022. This positive cash flow generation indicates the company’s ability to generate cash from its core operations.
Investing Cash Flow: The company’s investing cash flow remained negative in FY2023 at ₹0.71 crore, indicating ongoing investments in its business.
Financing Cash Flow: Mukka Proteins’ financing cash flow increased significantly in FY2023 to ₹61.12 crore, primarily due to the proceeds from the ongoing IPO.

Overall Analysis:

Mukka Proteins’ financial performance in FY2023 shows strong growth in revenue, profitability, and cash flow generation. The company’s debt levels have also decreased significantly, indicating a strong financial position. The ongoing IPO is expected to further improve the company’s financial flexibility and support its future growth initiatives.

Evaluation of Financial Health and Stability

Revenue: Mukka Proteins’ revenue has grown steadily over the past five years, from ₹407.37 Cr in March 2019 to ₹1,066.40 Cr in March 2023. This indicates positive business growth.
Profitability: Profitability has fluctuated over the past five years. The company reported a net profit of ₹39.42 Cr in March 2023, which is the highest in the period mentioned. However, it’s important to note that the profit margin is relatively low, ranging from 2% to 9% over the past five years.
Debt: The company’s debt levels have decreased significantly over the past five years, with borrowings dropping from ₹14.35 Cr in March 2019 to ₹0.27 Cr in March 2023. This is a positive sign for the company’s financial health.
Cash flow: Mukka Proteins’ operating cash flow has been negative over the past five years, except for March 2022. This indicates that the company’s operations are not generating enough cash to cover its expenses. However, the negative cash flow has been partially offset by positive financing cash flow in most years.

Overall:

Mukka Proteins shows signs of growth in revenue and decreasing debt levels, which are positive indicators for financial health. However, the company’s profitability is volatile and its operating cash flow has been negative for most of the past five years. These factors raise concerns about the company’s ability to generate sustainable profits and meet its financial obligations in the long run.

Additional factors to consider:

Industry outlook: The outlook for the animal protein industry in India is expected to be positive, driven by factors such as increasing demand for protein and rising disposable income. This could benefit Mukka Proteins.
IPO details: The company’s IPO is currently open, with a price band of ₹26-₹28 per share. The issue size is ₹224 Cr, and the shares are subscribed 7.07 times as of March 1, 2024. This indicates strong investor interest in the company

Year	Price Target (Rs.)
2024	40 – 45
2025	55 – 60
2026	70 – 75
2027	85 – 90
2028	100 – 110
2029	120 – 130
2030	140 – 150

For the year 2024, we project Mukka Proteins’ share price to reach a target range of Rs. 40-45. This target is based on the company’s expected revenue growth, driven by increasing demand for its products in the domestic and international markets.

The company’s focus on expanding its production capacity and improving operational efficiency is likely to support margin expansion and profitability growth. The target PE multiple for 2024 is estimated to be around 18-20x, considering the company’s strong growth prospects and the industry average.

Our share price target for Mukka Proteins in 2025 is Rs. 55-60. This target factors in the company’s continued revenue growth momentum, supported by the increasing adoption of sustainable protein sources in the aquaculture industry.

The company’s investments in research and development, aimed at introducing innovative products and improving the quality of its offerings, are expected to drive market share gains. The target PE multiple for 2025 is projected to be around 20-22x, reflecting the company’s robust growth trajectory and improving return ratios.

For 2026, we estimate Mukka Proteins’ share price to reach Rs. 70-75. This target takes into account the company’s expanding global footprint and its ability to capitalize on the growing demand for high-quality animal protein products.

The company’s strategic partnerships and collaborations with key industry players are expected to open up new growth avenues and enhance its market penetration. The target PE multiple for 2026 is estimated to be around 22-24x, considering the company’s strong competitive position and the industry’s growth potential.

Our share price target for Mukka Proteins in 2027 is Rs. 85-90. This target is based on the company’s expected market leadership in the alternative protein segment, particularly in the BSF insect meal market.

The increasing acceptance of insect-based protein as a sustainable and cost-effective feed ingredient is likely to drive significant growth for the company. The target PE multiple for 2027 is projected to be around 24-26x, factoring in the company’s strong growth prospects and its ability to command a premium valuation in the market.

For 2028, we estimate Mukka Proteins’ share price to reach Rs. 100-110. This target takes into account the company’s expected dominance in the animal protein industry, supported by its diversified product portfolio and strong brand reputation. The company’s focus on operational excellence and its ability to scale up production efficiently are likely to drive margin expansion and profitability growth.

The target PE multiple for 2028 is estimated to be around 26-28x, considering the company’s robust financial performance and its ability to generate superior returns for shareholders.

Our share price target for Mukka Proteins in 2029 is Rs. 120-130. This target factors in the company’s expected leadership in the global animal protein market, driven by its innovative product offerings and its ability to cater to the evolving needs of the aquaculture industry.

The company’s investments in advanced technologies and its focus on sustainability are likely to provide a competitive edge and drive long-term growth. The target PE multiple for 2029 is projected to be around 28-30x, reflecting the company’s strong market position and its ability to deliver consistent growth and profitability.

For 2030, we estimate Mukka Proteins’ share price to reach Rs. 140-150. This target takes into account the company’s expected market leadership in the global animal protein industry, supported by its strong brand equity, extensive distribution network, and robust supply chain.

Mukka Proteins’ focus on innovation and its ability to adapt to changing market dynamics are likely to drive sustained growth and profitability

Expert Opinions and Market Sentiments

Industry experts and market analysts hold a positive outlook on Mukka Proteins’ future prospects. The company’s strong fundamentals, innovative product portfolio, and strategic growth initiatives are widely recognized as key drivers of its success. Analysts expect Mukka Proteins to benefit from the increasing consumer awareness of health and wellness, the rising popularity of plant-based diets, and the growing demand for functional ingredients. The company’s ability to adapt to changing market trends and consumer preferences positions it well for long-term growth and value creation.

The issue size of the IPO is ₹224 crore.
The price band for the IPO is ₹26 to ₹28 per share.
The IPO is open for subscription from February 29, 2024 to March 4, 2024.
The shares are expected to list on the stock exchanges on March 7, 2024.

Growth Strategies and Challenges

Growth Strategies:

Expanding product portfolio: Mukka Proteins is looking to expand its product portfolio by introducing alternative protein sources like Black Soldier Fly (BSF) insect meal to cater to the growing demand in the aquaculture industry. This will help them tap into a new market segment and increase their revenue potential.
Focusing on exports: The company is already a recognized exporter of fish meal and fish oil products. They plan to further strengthen their export presence by reaching new markets and increasing their market share in existing ones. This will help them diversify their revenue streams and reduce dependence on the domestic market.
Upgradation of facilities: Mukka Proteins is investing in upgrading its facilities to improve efficiency and increase production capacity. This will enable them to meet the growing demand for their products and improve their profitability.

Challenges:

Competition: The animal protein industry is highly competitive, with several established players. Mukka Proteins will need to face competition from these players in both domestic and international markets.
Volatility in raw material prices: The prices of raw materials like fishmeal and fish oil can be volatile, which can impact the company’s profitability.
Regulations: The company operates in a regulated industry, and any changes in regulations could impact its business operations.

Comprehensive Risk Analysis

Mukka Proteins Limited is an Indian company specializing in the production of fish meal, fish oil, and fish soluble paste. They are also developing alternative protein sources like Black Soldier Fly (BSF) insect meal. While the company shows potential for growth, there are also several risks to consider before investing in their upcoming IPO.

Here’s a breakdown of some key risks:

Industry risks:
- The fish meal and fish oil industry is cyclical and can be impacted by fluctuations in fish prices, global demand, and competition.
- Regulatory changes regarding sustainability and environmental concerns could affect the industry.
Company-specific risks:
- Dependence on raw materials: The company relies on consistent access to fish, which can be affected by weather patterns, overfishing, and government regulations.
- Legal proceedings: The company is involved in some legal proceedings, and an adverse outcome could impact its financial performance.
- Limited track record: Mukka Proteins has a long history, but its recent financial performance is limited.
- Dependence on key personnel: The company’s success may depend on the expertise and experience of its key management team.
Financial risks:
- The company has a moderate debt level, which could limit its ability to grow and weather economic downturns.
- The company’s profitability has fluctuated in recent years.

Overall, investing in Mukka Proteins carries inherent risks. While the company has the potential for growth, investors should carefully consider these risks before making an investment decision. It’s crucial to conduct thorough research, understand your own risk tolerance, and consult with a financial advisor before investing in any IPO.

Mitigation Strategies

To mitigate these risks, Mukka Proteins has implemented several strategies:

Diversification of product offerings: A diverse product portfolio helps reduce dependence on any single product or market segment.
Hedging against commodity price risks: The company employs hedging strategies to manage exposure to raw material price fluctuations.
Investment in research and development: Continuous investment in R&D enables Mukka Proteins to stay ahead of the competition and develop innovative products.
Proactive regulatory compliance: The company maintains strict quality control measures and proactively engages with regulatory authorities to ensure compliance.

These risk mitigation strategies, along with Mukka Proteins’ strong financial position and market leadership, provide a level of stability and resilience to the company’s stock.

Conclusion

The comprehensive analysis of Mukka Proteins’ market position, financial performance, and share price dynamics highlights the company’s strong growth potential and value creation prospects in the food processing industry. With a robust product portfolio, innovative capabilities, and a focus on sustainable practices, Mukka Proteins is well-positioned to capitalize on the growing demand for high-quality proteins and nutritional supplements. The company’s strong financial metrics, healthy balance sheet, and projected share price targets make it an attractive investment opportunity for long-term investors.

References and Citations

Mukka Proteins- annual report
Mukka Proteins financial – finlology

Disclaimer: This analysis of mukka proteins 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

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