Food products company approves loans and equity investments totalling over Rs 53 crore for subsidiary expansions and new facilities
The stock is up by 6 per cent from its 52-week low of Rs 386.5 per share.
Krishival Foods Limited announced a series of significant financial approvals and investments decided at its board meeting held on Friday, June 27, 2025. These strategic moves are primarily aimed at bolstering the production capabilities of its subsidiaries and associates. A key highlight includes the granting of a loan up to Rs 2 Crores and an equity investment of Rs 2 Crores to Siddhivinayak Cashew Industries Private Limited, a wholly-owned subsidiary. These funds are earmarked for the construction of a state-of-the-art plant and machinery for the dry fruit processing and trading business.
Further expanding its operational footprint, Krishival Foods Limited also approved a substantial loan of up to Rs 25 Crores to Melt 'N' Mellow Foods Private Limited, another subsidiary. This significant capital injection will be utilised for the construction of modern production facilities for Hamma Foods Private Limited and BVK Foods Private Limited. These companies operate in the production of ice cream, milk products, and bakery products, indicating a strategic expansion within the food processing sector.
In addition to the direct loan from Krishival Foods, Melt 'N' Mellow Foods Private Limited is making its own substantial investments. It has approved an equity investment of Rs 7,39,80,390/- in Hamma Foods Private Limited, acquiring a 49% stake. Concurrently, Melt 'N' Mellow Foods will also grant a loan of up to Rs 14 Crores to Hamma Foods for the construction of its modern production facility. Similarly, Melt 'N' Mellow Foods is investing Rs 3,74,05,544/- for a 49% equity stake in BVK Foods Private Limited and providing a loan of up to Rs 3 Crores for the development of BVK Foods' state-of-the-art production facility.
All these transactions, including loans and equity investments, have been conducted on an arm's length basis and are in the ordinary course of business. It was noted that while certain directors hold positions in both Krishival Foods Limited and the involved subsidiaries/associates, their interests are limited to their directorships and KMP positions. The equity acquisitions are expected to be completed before July 31, 2025, with all considerations being in cash, signifying Krishival Foods Limited's commitment to enhancing its and its group companies' production capacities and market presence.
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About the Company
Krishival Foods Ltd, established in 2014, is a prominent player in the processed nuts and dry fruits industry. The company transforms raw nuts and dried fruits into flavourful, packaged products marketed under Krishival Nuts. Their product range includes cashews, almonds, pistachios, dry figs and combo packs, which are widely available across 64 tier II and tier III cities in India. The company acquired a significant 52.94 per cent stake in Melt ‘N ’Mellow Foods Private Limited. This acquisition will allow Krishival Foods to diversify its portfolio and enter the growing food and beverage sector, gaining access to established brands and a strong distribution network.
Krishival Foods Limited reported a 97 per cent year-on-year increase in total income to Rs 206.30 crore in FY 2024-25, up from Rs 104.70 crore in FY 2023-24. EBITDA grew 66 per cent to Rs 25.23 crore from Rs 15.17 crore, and Net Profit (PAT) surged 44 per cent to Rs 13.54 crore from Rs 9.35 crore. EPS increased 39 per cent to Rs 6.08 from Rs 4.37. The 'Krishival Nuts' division saw revenue rise 67 per cent to Rs 175 crore from Rs 104 crore, with EBITDA up 50 per cent to Rs 23 crore from Rs 15 crore. The 'Melt N Mellow' ice cream brand, acquired in September 2024, posted Rs 51 crore in revenue, a 38 per cent increase from Rs 37 crore, and a remarkable 783 per cent EBITDA increase to Rs 3 crore from Rs 0.35 crore.
The company has a market cap of Rs 891 crore with a PE of 43x, an ROE of 11 per cent and an ROCE of 15 per cent. The stock is up by 6 per cent from its 52-week low of Rs 386.5 per share.
Disclaimer: The article is for informational purposes only and not investment advice.