FMCG Stock Hits 5% Upper Circuit On Surpassing $100,000 Major Sales Milestone In Singapore

Krishival Foods Limited (NSE: KRISHIVAL) shares experienced a boost of 4.13% locked in an upper circuit limit at Rs 240 on Wednesday. This marked an improvement from the previous 230 per stock value. The stock is also up by 12.44% relative to the 52-week low of Rs 213 per share. This is a positive sign indicating increased confidence from investors. It is also important to note that Foreign Institutional Investors (FIIs) raised their ownership in the company to 11.80% as of September 2024 in accordance with new information released from the NSE by acquiring 57,500 shares.

The nuts brand 'Nuts' owned by Krishival's premium line, has sustained impressive sales figures in Singapore, crossing over US $100,000 of revenue monthly. Most of this revenue comes from the sales of the served flavored cashews, pistachios and almonds which are very popular among consumers in Singapore. With over 75 stores in Singapore, Krishival plans to grow to 300 stores in the next year to further strengthen their position and try to dominate in the undeniably competitive Singapore market. This move represents what can be considered Krishival annual shift in terms of focusing on product quality and innovation.

Krishival Foods has made another important investment after acquiring a 52.94% stake in Melt 'N' Mellow Foods Private Limited. The latter company is known for its specialization in marketing icecreams, milk and bakery products. This acquisition is strategically important from Krishival Foods point of view as the company seeks to expand its business along with capitalizing on emerging opportunities in the food and beverage industry.

Melt 'N' Mellow's acquisition puts Krishival Foods in a competitive position with an established brand along with a credible distribution network and the know-how of the dairy and bakery segments. The merger and acquisition activity will enable the companies to harness their synergy for achieving growth, greater market penetration, and diversification of the product range. This shift allows Krishival to meet the heightened growth of demand for high quality dairy and bakery goods around the world as well as domestically.

In May of 2023, to reflect its wider product range and growth strategy, Krishival Foods transitioned from Empyrean Cashews Ltd. The firm also purchased a plot of land in Halkarni MIDC, Kolhapur, which is 5 acres and adjacent to their current processing facilities, to increase their processing capacity. With this additional ultra modern processing unit, Krishival will be able to better meet the growing demand.

The company has developed an e-commerce site, which enables customers to conveniently purchase the company's nuts and dried fruits. This initiative is in alignment with Krishival's omnichannel approach of having a retail outlet and an emerging online store to cater to more clients.

Krishival Foods Limited, established in 2014, is one of the prominent firms in India's processed nuts and dry fruits market. The company produces several packaged products from primary cashew nuts and dried fruits, which it sells under the brand name Krishival Nuts. Its product portfolio includes cashew nuts, almond nuts, pistachio nuts, dry figs, and combo packs sold throughout 64 tier II and III cities in India's states.

Krishival Foods is currently valued at Rs 534 crore with a P/E ratio of 41x, 11% ROE, and 13% ROCE. The company continues to demonstrate strong operational performance alongside strategic growth initiatives, highlighting the focus on maximizing value for the shareholders.