Manpasand Beverages zooms over 100% against IPO issue price

In past two-months, post March quarter results, the stock rallied 42% as compared to 9% rise in Sensex.

Manpasand Beverages has rallied 7% to Rs 712 on the BSE in intra-day trade on Tuesday in an otherwise subdued market, appreciating more than 100% against its initial public offer (IPO) issue price of Rs 320 per share. The stock is currently trading at its highest level since listing on July 9, 2015.

Manpasand Beverages is leading player in beverages segment offers mango based fruit drink under the Mango Sip brand; fruit drinks and carbonated fruit drinks under the Fruits Up brand; and fruit drinks with energy replenishing qualities under the Manpasand ORS brand. It also offers apple flavored fruit drink under the Apple Sip brand; and bottled water under the Pure Sip brand.

In past two-months, post March quarter results, the stock rallied 42% from Rs 500 on May 19, as compared to 9% rise in the S&P BSE Sensex.

The company had reported a 47.6% rise in net profit at Rs 25.54 crore for the fourth quarter ended March 31, 2016 as against net profit of Rs 17.30 crore in the corresponding quarter of previous fiscal.

Motilal Oswal Securities in June initiate coverage on the stock with a ‘Buy’ arriving at a price target of Rs 750.

“We believe, margins will remain resilient at 20% as the contribution of high margin Fruits Up business will increase from 19% in FY16 to 31% in FY18E. Additionally, company has also recently increased prices of its products to neutralize the impact of increase in raw material prices and inspite of it the company continues to face stock out situation at many instances. This also signifies pricing power and company will be in a situation to pass on any further increase in raw material prices,” brokerage firm said in a report dated June 24, 2016.

At 03:06 PM, the stock was up 4.4% at Rs 695 on the BSE, as compared to 0.04% rise in the benchmark index. A combined 214,627 equity shares changed hands on the counter on the BSE and NSE.