Business Overview
Modi Naturals is in business of Oil processing. It is one of the largest Oil processing Company in the Country. It is part of Modi Group. The other popular company from this group is Godfrey philips.
The business operations of the Company can be divided into two parts
- Consumer Products
- B2B products
Consumer Products
It has entered FMCG (Fast moving consumer goods) segment with these products recently. Below are the brands under this segment from it
- Oleev – Eatable Olive Oil
- Olivana – Olive oil for body massage
- Rizolo – Eatable Rice bran Oil
- Miller – Eatable Canola Oil
- Tarai – Eatable Mustard Oil
So it offers different type of Oil targeted at different categories of Indian consumption.
B2B Products
B2B stands for Business to Business products. It offers below products in this segment
- Rice Bran Oil
- Sunflower Oil
- Mustard Oil
- Rice Bran Wax
- Distilled Fatty Acids
- De-oiled Rice Bran
- De-oiled Sunflower Cake
The products offered in B2B sector are more are less same as those offered in Consumer product segment.
Stock Performance
Above is long term stock performance chart. As you can see it has given 20 times return despite the recent steep fall in the Stock. The stock has great run between year 2015 and 2017 reaching the heights of 150 from below 10 levels.
After recent correction it is coming to lucrative level and investors can have a look. The stock does not give any dividend.
My Opinion
The Company is in business of Oil processing mainly. Slowly it is trying to enter the FMCG segment as well. So that it can sell its own product in market.
India is one of the largest market for Oils as of now. There are many companies in this sector. It is also dominated by unorganized players. It has many oil variants which is one positive point in favor of the Company.
The entry into FMCG sector is a big plus for the Company. FMCG sector penetration should be closely watched. As along with preference , distribution (availability of products) is also important.
The products are also available on leading eCommerce websites with good reviews. So quality wise products are decent and have customer base (online distribution). It is important to see if products have good coverage in retail segment.
I would put this Company on my radar for coming days. If the FMCG play rolls out well then this Company can give stellar returns over a period of time.