Nomura Singapore increases stake in Mishtann Foods

Mishtann Foods Q4 results 2023 : This small-cap Nomura Singapore-backed stock has been in uptrend after the announcement of Q4FY23 results. The small-cap company, which has a market cap of ₹861 crore, has reported near 10 per cent growth in revenue from operations to ₹168.89 crore, which stood at ₹153.47 crore in the corresponding period in previous fiscal. The FMCG company claimed this growth was primarily driven by various product launched by the company in domestic and international market. 

Mishtann Foods claimed in its exchange communication that EBITDA increased by 4.57 per cent from ₹22.33 crore in Q4 FY22 to ₹23.35 crore in Q4 FY23. EBITDA margins decreased from 14.55 per cent in Q4 FY22 to 13.82 per cent in Q4 FY23 by 73 bps.

The company's PAT increased by 7.45 per cent from Rs. 13.15 crore in Q4 FY22 to Rs. 14.13 crore in Q4 FY23. PAT margins decreased from 8.57 per cent in Q4 FY22 to 8.36 per cent in Q4 FY23 by 21 bps.

Nomura Singapore shareholding : The FMCG company recently informed Indian exchange about Nomura Singapore raising its stake in the company to 1,28,25,854 Mishtann Foods shares, which is 1.28 per cent of total paid up capital of the company. As per the Mishtann Foods shareholding for January to March 2023 quarter, Nomura Singapore name is missing from the list of FIIs that owns more than 1 per cent stake in the company. This means, Nomura Singapore has bought shares in the company after the end of Q4FY23. However, it would be difficult to ascertain whether the FII bought all shares in Q1FY24 or it bought company shares to an extent that it came above 1 per cent of total paid up capital of the company. 

As per the exchange rules, listed companies are bound to share names of all stakeholders who own more than one per cent share in the company. So, this is also a possibility that Nomura Singapore was owning stake in the small-cap FMCG company but its shareholding was below one per cent due to which its name was missing from the individual FIIs in the shareholding pattern of the company for Q4FY23. 

Stock market today: Amid Indian stock market sentiments turning cautious to weak as in last two sessions, some stocks have managed to outperform key benchmark indices and broad market indices. Mishtann Foods shares are one of them. This small-cap stock has been rising for the last four days, without being bothered by Dalal Street sentiments for last couple of sessions. The FMCG stock, in which Nomura Singapore owns 1.28 per cent stake or 1,28,25,854 company shares, witnessed buying interest in morning deals and hit intraday high of 8.71 apiece levels on BSE,, logging intraday rise of around 2.35 per cent.