A little-known Haryana-based edible oil refiner M K Proteins has surprised investors as it surged a whopping 1,857 per cent in 2022 to Rs 2,329 from Rs 119 last year. With 1,857 per cent surge, M K Proteins has emerged as the top gainer on the National Stock Exchange's (NSE) measure of small and micro enterprises - NSE Emerge index.
M K Proteins is engaged in manufacturing vegetable refined oils, with a refining capacity of 250 tons per day. The company refines rice bran, sunflower, cotton seed, soya bean, palm, and canola oil at its manufacturing facility in Ambala, Haryana.
Analysts say that the company was a beneficiary of the shortage in edible oil in international market after the Russian invasion of Ukraine in 2021. Ukraine is the largest producer of sunflower oil in the world.
As per reports, Ukraine accounts for 70 per cent of sunflower production and Russia 20 per cent. Ukraine had the highest production volume of sunflower seeds of any country in the world in the 2021/2022 crop year. During that time period, Ukraine produced around 17.5 million metric tons of sunflower seeds. Russia is also a major producer of sunflower seeds worldwide, with a production volume of 15.5 million metric tons in 2021/2022, according to market and consumer data firm Statista.
India contracted 45,000 tonnes of Russian sunflower oil at a record high price for shipments in April as edible oil prices in the local market surged after supplies from rival Ukraine stopped because of the war, news agency Reuters had reported last year citing sources.
For financial year 2022, M K Proteins reported profit of Rs 10.18 crore on revenue of Rs 256 crore compared with profit of Rs 10.39 crore on revenue of Rs 311 crore for FY21. In financial year 2020, the company reported profit of Rs 1.8 crore on revenue of Rs 194 crore.
Notably since last two financial years its profit jumped nearly 10 times. While its operating profit margins improved rapidly from 1.86 per cent in financial year 2020 to nearly 6.2 per cent in financial year 2022.
Analysts are of the view that the company is likely to post solid set of numbers for current financial year since there was shortage of edible oils in the market and that has led to such a big spike in its stock price.
M K Proteins shares ended 5 per cent higher at Rs 2,329 on Wednesday outperforming the Emerge index which closed 0.3 per cent higher.
