Mukka Proteins shares surge 20% after its joint venture receives order worth ₹475 crore

Shares of Mukka Proteins, the animal protein maker, surged as much as 20% to hit an intraday high of ₹30.26 on the National Stock Exchange amid higher than usual trading volumes after the company informed exchanges that it won an order from Bengaluru Solid Waste Management Limited.

Mukka Proteins informed exchanges that its joint venture with Hardik Gowda and MS Jathin Infra Private Limited received an order worth ₹474.89 lakh crore exclusive of goods and services tax (GST) from Bengaluru Solid Waste Management Limited (BSWML).

The work order received by the company pertains to treatment and disposal of legacy leachate accumulated in Mittaganahalli & Kannur Landfill sites.

The company has to complete the order within four years or till treatment and disposal of legacy leachate accumulated in landfill site, whichever is earliest.

Meanwhle, Mukka Proteins shares were witnessing higher than usual trading volumes as 4.99 lakh shares changed hands on the BSE compared with an average of 39,000 shares traded daily in the past two weeks.

Last moth, Mukka Proteins informed exchanges that it acquired 68% stake in United Gulf Fishery Products for ₹100 crore.

The proposed investment was made as a part of Company’s strategic investment plans to expand the Company’s business in the Middle East by leveraging the acquired entity’s local presence and expertise. The Company is also evaluating a future merger of this entity with another Group company to achieve operational efficiencies and business synergies, Mukka Proteins had said during the time of acquisition.

Mukka Proteins Q2 earnings

Mukka Proteins reported net profit of ₹3.6 crore in the second quarter of current financial year, marking an increase of 66% from ₹2.17 crore in the year-ago period.

Its revenue from operations, in the July-September period, advanced 77% to ₹216 crore as against ₹122 crore in the same period last year.

Shares of Mukka Proteins made a strong stock market debut last year, the stock listed at a premium of 42% over the initial public offering (IPO) price. On the NSE, Mukka Proteins shares opened at ₹40 per share compared to the issue price of ₹28 per share.

As of 9:44 am, Mukka Proteins shares traded 10.11% higher at ₹27.78, outperforming the NIFTY50 index which was trading on a flat note.