M K Proteins Ltd, incorporated in 2012, is a leading player in the vegetable refined oils industry with a diverse product portfolio and a strong market presence. The company’s business revolves around the manufacturing of vegetable refined oils, with its flagship retail brand being Gloh.
Business Overview: M K Proteins engages in the refining and production of a variety of oils, including Refined Rice Bran Oil, Canola Oil, Soya Bean Oil, Sunflower Oil, and Rice Bran Bleached Oil. Notably, the refining process also yields valuable by-products such as Rice Bran Fatty Acid Oil, Rice Bran Wax, Gums, and Spent Earth, all of which contribute to additional revenue streams. The company not only processes domestically sourced crude oils but also imports them, showcasing a comprehensive approach to its operations. Furthermore, M K Proteins is involved in the trading of both edible and non-edible oils, adding to its business versatility.
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Product Profile: The company’s product portfolio is diverse, encompassing: a) Rice Bran Oil b) Sunflower Oil c) Cotton Seed Oil d) Soya Bean Oil e) Palm Oil f) Canola Oil
Manufacturing Capacity: M K Proteins operates from its production facility in Ambala, Haryana, boasting an impressive installed refining capacity of 250 tons per day. This underscores the company’s commitment to meeting the demands of the market efficiently.
Financial Highlights:
- Market Cap: Rs. 586 crores
- Current Price: Rs. 47
- Book Value: Rs. 4.25
- 52-Week High/Low: Rs. 100/35
- Promoter Holding: 74.8%
- Public Holding: 25.2%
- Profit Growth: 13.3%
- Debt Reduction: The company has successfully reduced its debt burden.
- Profit Growth (CAGR): M K Proteins has achieved an impressive 49.4% CAGR over the last 5 years.
- Return on Equity (ROE): The company has a commendable track record with a 3-year ROE of 30.1%.
- Debtor Days: The improvement in debtor days from 28.3 to 19.0 days indicates efficient receivables management.
Revenue Breakup – FY22:
- Sale of Manufactured Goods: ~82%
- Sale of Traded Goods: ~18%
In summary, M K Proteins Ltd stands out as a well-established player in the vegetable refined oils industry, boasting a robust production capacity, diverse product range, and sound financial performance. The company’s strategic approach to refining, trading, and leveraging by-products demonstrates its adaptability and market acumen. With a focus on reducing debt and delivering consistent profits, M K Proteins appears to be a promising investment opportunity in the sector.