Multibagger FMCG Stock in focus as company to evaluate fundraising (FPO/rights/GDR/ADRs/FCCBs/QIP/preferential/debt) and form a fund-raising committee

On Monday, shares of Krishival Foods Limited surged 0.9 per cent to Rs 466 per share from its previous closing of Rs 461.95 per share. The stock has a 52-week high of Rs 473.10 per share and its 52-week low is Rs 211 per share.

Krishival Foods Limited, in compliance with Regulation 29 of the Listing Regulations (LR), has scheduled a Board of Directors (BoD) meeting for Wednesday, October 01, 2025, to discuss a substantial capital-raising initiative. The primary focus of the meeting will be to evaluate potential methods for issuing securities, which include, but are not limited to, a further public offer (FPO), a rights issue, the issuance of Global Depository Receipts (GDRs), American Depository Receipts (ADRs), or Foreign Currency Convertible Bonds (FCCBs), a qualified institutions placement (QIP), or a preferential or debt issue. The BoD also has a critical secondary agenda: the formal establishment of a dedicated Fund-Raising Committee (FRC) to supervise and execute the chosen strategy for capital formation.

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Additionally, the company has welcomed the GST rate reduction on nuts, dried fruits, and ice cream, a move that is expected to significantly boost sales ahead of the festive season. The 56th GST Council meeting confirmed a reduction for these products, with nuts and dried fruits seeing their GST rate cut from 12 per cent to 5 per cent, and ice cream from 18 per cent to 5 per cent. This policy change, effective September 22, 2025, is anticipated to spur consumption by making high-quality packaged foods more affordable and accessible to a broader range of consumers.

About the Company

Krishival Foods Ltd. is one of the FMCG companies focused on producing high-quality, sustainable food products for domestic and global markets. With a diversified portfolio across dry fruits, snacks, ice cream, etc. and a robust procurement model, the company aims to emerge as a major player in discretionary consumption.

According to Quarterly Results, the net sales surged 70 per cent to Rs 49.52 crore in Q1FY26 compared to net sales of Rs 29.20 crore in Q1FY25. The company reported net profit of Rs 4.40 crore in Q1FY26 compared to a net profit of Rs 3.35 crore in Q1FY25, an increase of 31 per cent. In FY25, the company reported net sales of Rs 202 crore and net profit of Rs 14 crore. The Board has declared a dividend of Re 0.24 per share and fixed record date as Thursday, September 18, 2025.

The company has a market cap of over Rs 1,000 crore with a PE of 64x, an ROE of 11 per cent and an ROCE of 15 per cent. The stock has given multibagger returns of over 120 per cent from its 52-week low of Rs 211 per share. The promoter of the company, Aparna Arun Morale, holds the majority of the stake, i.e., 34.48 per cent stake.

Disclaimer: The article is for informational purposes only and not investment advice.