Top News

Today there was a big entry of a company in the stock market, which surprised investors. The share of Regaal Resources to Corn Milling Business was listed directly above the issue price. It opened at Rs 141 on NSE and Rs 141.80 on BSE, while the issue price band was only ₹ 96- ₹ 102. By 11 am, the stock was trading at ₹ 135 even after a slight decline, that is, still 33% above.

After all, who is Regal Resources?

Established in 2012, the company started commercial production from 2018. It started with a capacity of just 180 tonnes, which has now increased to 825 tonnes per day. The company’s main raw material is Mecca (Corn), making it four major products – carbohydrates, starch, protein (gluten) and germ. They are used extensively in animal feed, oil and fiber industry.

How much has the impact on the company’s fluctuations on the company?

The unit of the company is in Bihar and it is located close to the Bengal border. Bihar produces about 55 million tonnes of maize every year and 20 lakh tonnes in Bengal. In this way, the company has a supply base of more than 75 lakh tonnes. To avoid seasonal price fluckleation, the company buys 90% stock in the Rabi season itself. The advantage of this is that the company can estimate the prices of products till next year with accuracy.

Domestic market is the real strength

The company has 91% sales in the domestic market and only 9% exports. If you look at the region-wise, 40% of the goods go to Eastern India, about 25-30% northern parts and the rest of Gujarat, Maharashtra, Rajasthan.

Strong connection with farmers

The biggest advantage of Regaal Resources is the direct farmer connect to this. Farmers around the company produce 6 lakh tonnes of maize every year. It is easier to sell them with the company instead of taking them to mandis from 50-110 km away.

The company has also started ‘Kisan Friendship Program’ for farmers. Under this: Tata Panch cars were given to farmers selling more than 6,000 tonnes. This year, 8,000 tonnes will get heavy duty tractor. Farmers with small volumes get gifts like Royal Enfield, Washing Machine, Sewing Machine and Mobile Phones.

Preparation of value added products

The company is now making liquid glucose, mantodextrin powder and modified starch. By next year, dextrohydras and monohydras will also come into production, which will be used in the pharma industry.

Profit speed

Three years ago, the company’s net profit was only 16 crores, which has now increased to 47 crores. The share growth rate is 36% CAGR. When the company doubles production, the profit will also increase at the same speed.