Foreign institutional investors are on a buying spree in India. The Fast-Moving Consumer Goods (FMCG) sector has emerged as a favourite space for FIIs. Notaly, the FMCG sector is considered defensive because it tends to perform relatively well even during economic uncertainty. In the latest round of foreign inflow in the country, Nomura Singapore has once again raised its stake in leading FMCG player Mishtann Foods.
Mishtann Foods is a smallcap company with a market valuation of Rs 1207 crore and currently trades at a year high of Rs 12.55. At current levels, the stock is up 67 per cent in a month.
The counter has given multibagger returns of over 220 per cent in the last two years. In January this year, it had declared a rights issue worth Rs 150 crore.
The leading global financial services group now holds 1.38 per cent stake in the Gujarat based FMCG company. The development comes close on the heels of Nomura buying as many as 12,825,854 shares of the company, taking its overall stake to 1.28 per cent, according to a regulatory filing.
With foreign institutional investors showing their interest in the sector, Mishtann Foods is hopeful of driving its overall revenue by introducing a variety of new products in the domestic market.
The move is expected to benefit its topline, Mishtann said in a filing to the exchanges.
Mishtann is well-known for its agro food product portfolio. It has 100,000 metric tonne per annum rice processing facility is located near Ahmedabad. The company has shown interest in venturing into new markets like North Eastern states.
Earlier in April, Mishtann Foods had set up a new subsidiary in the UAE as a part of its expansion plan to focus on international trade with increased exposure in various untapped markets. The company has a wide network of 40,000 plus dealers all over the country.