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FMCG stock jumps after company announces strategic partnership with Avalon Energy Group

Published 20-06-2024, 01:34 pm
FMCG stock jumps after company announces strategic partnership with Avalon Energy Group

Shares of this microcap company jumped around 1.50 percent in Thursday’s trading session after announcing a strategic partnership with Avalon Energy Group LLC, USA, and Avalon Bioenergy Private Limited, aimed at advancing the Moringa project.

With a market capitalization of Rs. 87.8 crores, the shares of Ajooni Biotech Ltd started Thursday’s trading session on a higher note at Rs. 5.15 compared to its previous close of Rs. 5.04. During the trading session, the shares hit a high of Rs. 5.30, gaining around 1.50 percent and are currently trading at Rs. 5.06 apiece.

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Such a positive movement in the share price was observed after the company in an exchange filing announced that a strategic partnership with Avalon Energy Group LLC, USA, and Avalon Bioenergy Private Limited, aimed at advancing the Moringa project.

This collaboration focuses on agri-processing components, including the establishment of processing plants and crushing and drying mills to process Moringa seeds and leaves. Further, these will be used to produce oil for processing and marketing by Avalon, and oil cake for animal feed, both for Ajooni’s domestic market and for export.

Coming onto the company’s financial statements, the revenue decreased by 2.3 percent from Rs. 20.05 crores during the December quarter to Rs. 19.58 crores in the March quarter. On the other hand, the net profits magnified by 107 percent from Rs. 44 lakhs to 91 lakhs during the same timeframe.

Looking at the revenue segment of the company, it derives around 81 percent of its revenue from Feed & others and the remaining 19 percent from Supplements.

Furthermore, the company is actively exploring export opportunities in the Middle East, African countries, and other regions across Asia and intends to participate in Government tender issued by State departments and expand in the International market.

In terms of key financial metrics, the company reported a Return on Equity (RoE) of 5.06 percent and a return on capital employed (RoCE) of 7.98 percent for the period spanning FY23-24. Further, the net profit margin stood at 2.69 percent during the same timeframe.

According to the latest shareholding pattern, the Promoters hold 26.89 percent of shares, and the remaining 73.11 percent stake is with the Retail Investors.

Headquartered in Punjab, Ajooni Biotech is a leading manufacturer of livestock feed and feed supplements in India. The company’s product portfolio includes a wide range of products such as milk fortifiers, natural calf starters, energy products, and feed supplements.

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Written By Vaibhav Patil

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