Prataap Snacks nudges higher after entering into mfg pact

Prataap Snacks gained 1.29% to Rs 1,164.95 at 13:55 IST on BSE after the company entered into a new contract for third party manufacturing at Ahmedabad, Gujarat, Bengaluru, Karnataka and Kolkata, West Bengal for producing potato chips.

The announcement was made after market hours on Thursday, 25 January 2018. The market remained shut on Friday, 26 January 2018, due to holiday.

Meanwhile, the S&P BSE Sensex was up 296.76 points, or 0.82% to 36,347.20. The S&P BSE Small-Cap index was down 75.56 points, or 0.39% to 19,266.62, underperforming the Sensex.

On the BSE, 298 shares were traded in the counter so far, compared with average daily volumes of 4,236 shares in the past two weeks. The stock had hit a high of Rs 1,165 and a low of Rs 1,153.10 so far during the day. The stock had hit a record high of Rs 1,404 on 14 December 2017. The stock had hit a record low of Rs 1,102 on 31 October 2017.

The stock had underperformed the market over the past one month till 25 January 2018, declining 0.54% compared with 6.22% rise in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 9.56% as against Sensex's 9.1% rise.

The small-cap company has equity capital of Rs 11.73 crore. Face value per share is Rs 5.

The enhanced capacities will widen company's manufacturing footprint enabling it to cater to the growing demand for its products. The contract manufacturing facilities provide the additional advantage of being located in close proximity to the target markets ensuring optimal logistics and freight management.

Shares of Prataap Snacks were listed on the bourses on 5 October 2017.

The company will announce its Q3 results on 30 January 2018. On a consolidated basis, net profit of Prataap Snacks jumped 142.4% to Rs 12.92 crore on 12% rise in net sales to Rs 262.29 crore in Q2 September 2017 over Q2 September 2016.

Prataap Snacks is a leading Indian snack foods company. It offers multiple variants of products across categories of potato chips, extruded snacks, namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond brand.

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