⚡ Flash Summary

Matco Foods Limited (MFL) held a corporate briefing session on November 18, 2025. The company is focusing on expanding its Falak Foods division and increasing its market share in the USA, UK, and Australia. MFL has successfully completed the Business Transfer Agreement for its Falak Foods division and Matco Corn Products division, establishing them as separate subsidiaries. The company aims to launch at least five new products annually under the Falak brand and to increase its focus on branded FMCG products. The company is adopting green energy and aims to increase production capacity.

📌 Key Takeaways

• 1. 🚀 MFL’s journey began in 1964, focusing initially on supplying rice plant equipment.
• 2. 🍚 The company has over half a century of experience in the rice industry.
• 3. 🌍 MFL is a leading food processing and export company in South Asia, serving 300+ customers in 65+ countries.
• 4. 🏅 MFL received the ‘Highest Exporter of Basmati Rice Award’ in 2022.
• 5. 🌱 The company holds organic certifications from the US NOP and EU Organic Certification from the Control Union.
• 6. 🤝 MFL has been an IFC investee company since 2012.
• 7. ☀️ MFL installed a 1.5 MW solar system at its Corn Starch Division in 2024.
• 8. 🌶️ Falak Foods launched a new flavor, Chilli Crunch, in 2025.
• 9. 🏦 Matco Corn Products raised Rs. 750 million from Bank Alfalah against a 10% convertible loan in 2025.
• 10. 🌾 Rice processing capacity at Sadhoke is 40,410 MT per annum, while Karachi has 138,090 MT.
• 11. 🌽 Corn grinding capacity at the Corn Starch Plant is 72,000 MT per annum.
• 12. 🏭 The Rice Glucose Plant in Karachi has a production capacity of 30,000 MT for rice glucose and 3,000 MT for protein.
• 13. 📈 Falak Food’s sales increased by Rs. 175 million (48%) from 2023-24 to 2024-25.
• 14. 📊 Export refinance borrowing cost is expected to decrease from 13.62% (2024-25) to 9.00% (2025-26).

🎯 Investment Thesis

Based on the information, a HOLD recommendation is warranted. The company shows signs of improvement in profitability, but faces external risks. Further analysis needed on cash flows and detailed segment results. The price target rationale will depend on a full financial model and updated market comparables.