The company specializing in import and export experienced a 2 percent surge in its shares following a strategic partnership with an agricultural commodity firm based in Vietnam. Shareholders of the company have reaped substantial returns, witnessing a remarkable increase of 329 percent over the past year.
Beginning Wednesday’s trading session positively at Rs. 229, compared to the previous day’s close at Rs. 225.25, Growington Ventures India Ltd, with a market capitalization of Rs. 369 crores, saw its shares reach a high of Rs. 229.95, marking a 2 percent gain. Presently, the shares are trading at Rs. 229 apiece.
This upward movement in share price is attributed to the recent announcement made by the company in an exchange filing. The subsidiary company, Elementures Foodstuff Trading L.L.C, has entered into agreements with an agricultural commodity company in Vietnam for a consistent supply of Dragon fruits, Coconut, Guava, Lime, and other agricultural products starting from the first quarter of the calendar year 2024.
Additionally, the company has established arrangements with wholesalers in the UAE to facilitate supply to hotels, restaurants, and a chain of retail stores.
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Analyzing the company’s financial statement, there has been a substantial growth in revenue, escalating from Rs. 1.23 crores in FY21-22 to Rs. 19.63 crores in FY22-23. Moreover, the net profits underwent a remarkable transformation, shifting from a net loss of Rs. 3 lakhs to a net profit of Rs. 1.26 crores during the same period.
Examining key financial ratios, the return on equity (RoE) evolved from a negative 0.45 percent in FY21-22 to a positive 10.75 percent in FY22-23. Similarly, the return on capital employed (RoCE) surged from 0.48 percent to 14.38 percent during the corresponding period.
The latest shareholding pattern reveals that the promoters retain a 42.70 percent stake, while the remaining 57.30 percent is held by retail investors.
Founded in 1981 and headquartered in Mumbai, Growington Ventures India Ltd initially focused on holiday travel packages but later transitioned its business to the export and import of premium-quality fruits.