Small Cap Stock Backs Subsidiary With Rs 25 Cr Corporate Guarantee To Union Bank

A corporate guarantee of Rs 25 crore has been provided in favor of Union Bank of India, according to information released by Integrated Industries Limited to the stock exchange.

The guarantee serves as security for a loan facility extended to its material subsidiary, Nurture Well Foods Limited.

According to the corporation, this transaction was carried out at arm’s length, and neither the promoters nor the organizations that make up the promoter group have any stake in it. Integrated Industries claimed that although the guarantee represents a contingent liability in the event that the subsidiary defaults on its repayment commitments, there is no immediate financial impact on the company.

During its recent trading session on Friday, 24th October the shares of Integrated Industries ended 0.52% lower on the BSE at Rs 24.64 per share with a market cap of Rs 573.72 Cr.

The stock has shown moderate recovery from its 52-week low of Rs 17.00 recorded on September 12, 2025, gaining around 45% since then to reach the current market price of Rs 24.64. However, it still remains significantly below its 52-week high of Rs 43.00 touched on November 21, 2024, reflecting a decline of nearly 43% from that level.

This suggests a partial recovery with potential for more upside if bullish momentum continues. Even if the stock has recovered from its recent lows, it continues to trade below its previous peak.

Although the company’s medium-term growth (sales and profit growth) is robust, with 3- and 5-year CAGRs for sales and profits in double digits, the stock price has underperformed over the past year (32 percent one-year return), despite the longer-term (10-year) CAGR being high (72 percent), according to Screener data. Integrated Industries Limited (ITL), which was incorporated in 1995, is currently involved in the production of bakery products, organic and inorganic food products, and other processed food items.

It distributes its products throughout the whole North Indian market, which includes J&K, Himachal, Punjab, Rajasthan, Uttar Pradesh, Delhi NCR, and Uttar Pradesh, thanks to a robust network of more than 150 business partners. The company’s overseas market reaches countries including the United Arab Emirates, Somalia, Tanzania, Kuwait, Afghanistan, Congo, Kenya, Rwanda, and Seychelles in addition to its domestic market.

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