Tinna Trade Limited , a company operating in Agro Commodities and Steel Abrasives segments, has announced its financial results for the third quarter and nine months ended December 31, 2023, along with a significant decision regarding its stock exchange listing.

Financial Performance

The Board of Directors of Tinna Trade Limited has approved the unaudited financial results for Q3 and the nine-month period of the fiscal year. Here's a breakdown of the key financial metrics:

The company's Q3 performance shows a significant decrease in revenue from operations, dropping from Rs 7,652.69 lakhs in the previous year to Rs 4,591.79 lakhs. Despite the revenue decline, Tinna Trade managed to turn a small profit of Rs 0.21 lakhs, compared to a loss of Rs 14.74 lakhs in the same quarter last year.

For the nine-month period, the company reported a revenue of Rs 15,678.54 lakhs, down from Rs 24,166.43 lakhs in the prior year. However, the bottom line improved substantially, with a net profit of Rs 12.92 lakhs against a loss of Rs 216.31 lakhs in the corresponding period.

Voluntary Delisting from Calcutta Stock Exchange

In addition to the financial results, the Board of Directors has approved a proposal for the voluntary delisting of the company's equity shares from the Calcutta Stock Exchange Limited. Tinna Trade Limited will maintain its listing on the BSE Ltd, ensuring continued market presence and liquidity for its shareholders.

Business Segments

Tinna Trade Limited operates in two primary segments:

1. Agro Commodities
2. Steel Abrasives

These diverse business lines contribute to the company's overall performance and market positioning.

The company's ability to achieve profitability despite reduced revenues suggests potential improvements in operational efficiency or cost management. The substantial decrease in revenue across both quarterly and nine-month periods may be an area of focus for the management in the coming quarters.

Renowned investor Porinju V Veliyath has made a significant move in the stock market, acquiring a substantial stake in Fratelli Vineyards . The investment comes at a time when the company's stock has been experiencing a downward trend, potentially signaling Veliyath's confidence in the company's future prospects.

Investment Details

Porinju Veliyath, known for his value investing approach, has purchased 5 lakh shares of Fratelli Vineyards through bulk deals. The transaction was executed at Rs 109.70 per share, amounting to a total investment of Rs 5.50 crore. This move has caught the attention of market watchers, given the stock's recent performance and the company's financial situation.

Stock Performance

Fratelli Vineyards' stock closed at Rs 109.70 on the BSE, marking a 5% gain from the previous day's closing price of Rs 104.50. However, this uptick comes against a backdrop of significant decline:

• The stock has fallen 72% over the past year
• Year-to-date, it has declined by 67%
• Currently trading below both its 50-day moving average of Rs 136.00 and 200-day moving average of Rs 200.00

Technical indicators suggest the stock may be oversold, with the Relative Strength Index (RSI) near 20 and the Money Flow Index (MFI) around 7.

Financial Performance

Fratelli Vineyards' recent financial results paint a challenging picture:

The company reported a consolidated net loss of Rs 5.80 crore in its latest quarterly results. While this represents an improvement from the Rs 11.00 crore loss in the previous quarter, it's a significant downturn from the Rs 2.70 crore profit reported in the same quarter last year. Revenue saw a sharp 80% decline year-over-year, falling to Rs 29.00 crore from Rs 144.20 crore.

Investor Profile

Porinju Veliyath's investment portfolio now includes 11 publicly held stocks, with a total worth exceeding Rs 222.60 crore. His decision to invest in Fratelli Vineyards adds a new dimension to his diverse holdings.

Regulatory Context

The investment coincides with a significant change in the regulatory landscape. The government has introduced a GST rationalization that brings in a 40% tax rate on sin goods, up from the previous 28% rate. This change could have implications for companies in the alcoholic beverage sector, including Fratelli Vineyards.

As the market digests this substantial investment by a prominent investor, all eyes will be on Fratelli Vineyards to see how it navigates its current challenges and capitalizes on potential opportunities in the evolving regulatory environment.