Modi Naturals commercialises grain-based ethanol distillery with Rs 150 crore capex

Modi Naturals Limited (MNL), through its wholly-owned subsidiary Modi Biotech Private Limited (MBPL), has inaugurated its state-of-the-art ethanol distillery in Raipur, Chhattisgarh. The Ethanol Plant, an initiative of MNL’s subsidiary, MBPL, represents a significant stride towards a sustainable future.

With a state-of-the-art distillery boasting a robust production capacity of 210 KLD (thousand litres per day) and a 5.5 MW cogeneration power plant, this facility is poised to profoundly impact the biofuel landscape. The facility is planned to operate at 130 KLD in the first phase, with a capex of Rs 150 crore with a debt of Rs 100 crore.

The central government provided MBPL in-principal approval for ethanol production, emphasising its connection with the Ethanol Blended Petrol (EBP) programme for which an MOU with the Chhattisgarh government was signed to strengthen the commitment to this project.

Know: All about Ethanol Blending

Modi Naturals has reported a weak first quarter for FY24, with a net profit decline of 69.59% to Rs 0.79 crore, compared to Rs 2.61 crore in the same quarter last year. The operating profit also saw a decrease of 48.14%. The total income for the quarter also decreased by 16.4% to Rs 83.70 crore, compared to the previous year’s same quarter.

Modi Naturals is one of India’s leading consumer goods companies operating in the wellness and foods category. The company operates three factories in India located at Pilibhit, Sonipat and Hyderabad with a fourth inaugurated in Chhattisgarh.

Today, the stock opened at Rs 315.20, with a high and low of Rs 319.90 and Rs 303.20, respectively. The stock ended the trading session at Rs 306.65, down by 2.65%. The stock has a 52-week high of Rs 330, and a 52-week low of Rs 180.

Investors should keep a close eye on this micro-cap stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.