Kwality tweaks taste buds!

Kwality (KDIL), a well known dairy product company is today in the limelight. The stock which had closed yesterday at Rs.31.60 opened at Rs.33.50 and went on to hit an intra day high at Rs.35.80. The stock remains firmly in the green, up almost 7.5%.

The flurry of buying on the counter of KDIL is on unconfirmed news reports that it is holding talks with Rabo Equity Advisors, a PE fund, to sell 14-15% stake and hopes to raise around Rs.500 crore. The funds raised are most likely to be used to modernize its existing product line and gain a stronger foothold in the export markets through its Dubai based subsidiary. The company had ended Q2FY14, with a net profit of Rs.3 crore, with wafer thin NPMs at 2.8%, its NPMs are always around the same range of 2.6%. Market cap stands at Rs.695 crore.