Mukka Proteins Shares Surge on Landmark ₹474 Crore Order

Mukka Proteins' stock surged dramatically, hitting a 20 percent upper circuit after its joint venture announced a significant ₹474 crore work order from Bengaluru Solid Waste Management Limited.

Major Order Boosts Mukka Proteins

The animal protein company's shares saw substantial buying interest, reaching ₹30.25 on the BSE. This surge follows the announcement of a substantial project for the company's joint venture.

The Bengaluru Solid Waste Management Contract

• The joint venture, involving Mukka Proteins, Hardik Gowda, and MS Jathin Infra Private Limited, has been awarded a contract worth ₹4,74,89,14,500 (exclusive of GST) by Bengaluru Solid Waste Management Limited.
• The project entails the treatment and disposal of legacy leachate accumulated at the Mittaganahalli and Kannur landfill sites.
• This significant undertaking is slated for completion within four years or upon the successful treatment and disposal of all accumulated leachate.

Company Profile

• Mukka Proteins is a prominent player in the animal protein sector, specializing in the production of fish meal, fish oil, and fish soluble paste.
• The company is also pioneering alternative protein sources like black soldier fly (BSF) insect meal for animal feed.
• With a history of innovation, including establishing one of India's first steam-sterilised fishmeal plants, Mukka Proteins holds EU certification and is listed by China's AQSIQ, underscoring its commitment to quality and international standards.

Market Reaction

• The positive news led Mukka Proteins' shares to hit the 20 percent upper circuit in early morning deals on the BSE.
• At the time of reporting, the stock was trading 14.64 percent higher at ₹28.9 per share, outperforming the broader market, which saw the BSE Sensex down by 0.08 percent.
• The company's market capitalization stands at ₹867 crore.

Future Expectations

• This substantial order is expected to significantly boost Mukka Proteins' revenue and profitability over the next four years.
• It also diversifies the company's business operations into waste management, a critical sector with growing importance.

Impact

• The ₹474 crore order represents a significant revenue stream for Mukka Proteins, potentially leading to increased profitability and enhanced shareholder value.
• It validates the company's strategy of diversifying into environmental services and its capability to handle large-scale infrastructure projects.
• Investor sentiment towards Mukka Proteins is likely to improve, attracting further interest in the stock.
• Impact Rating: 8/10

Difficult Terms Explained

• Upper Circuit: The maximum price increase allowed for a stock on a given trading day, set by stock exchanges to prevent excessive volatility.
• Joint Venture (JV): An agreement where two or more parties pool their resources for the purpose of accomplishing a specific task or project.
• Leachate: Liquid that has passed through a landfill or other material, picking up soluble or suspended solids, and carrying them into the surrounding environment.
• Market Capitalisation: The total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares outstanding.
• 52-week high/low: The highest and lowest prices at which a stock has traded during the past 52 weeks.
• EU Certified: Indicates that the company's products or processes meet the quality and safety standards set by the European Union.
• AQSIQ: Administration of Quality Supervision, Inspection and Quarantine – a former Chinese government agency responsible for quality, inspection, and quarantine services.