The Wattle Health Australia Ltd (ASX: WHA) share price has pushed higher again in morning trade.
At the time of writing the infant formula and baby food company's shares are up 8% to $2.32.
What happened?
This morning the company advised that it has received its first order for its 100% natural baby food range from Vasudevan and Sons Exim Private Limited in India.
The order was made after the company's products met India's strict importation criteria.
According to the release, management believes this order will open the door for Wattle Health to compete in one of the most populated areas in the world where almost half the population are under the age of 25.
Furthermore, management believes this deal complements its aim of expanding its product portfolio and distribution network in both domestic and international markets as a way of reducing its overall risk profile and the reliance on one particular product or market.
I feel this is management's way of reminding investors that it isn't a one-trick pony. After all, investor attention is focused almost entirely on its infant formula range and the prospect of it competing against A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) in the lucrative China market.
Should you invest?
While this is a positive development, it is hard to put a value on it as no financial terms were revealed today.
In light of this, I think investors ought to put Wattle Health on their watchlists but hold off an investment until sales data is provided.
With so much growth already built into its share price, I believe an investment carries a lot of risk at this point. While I'm hopeful that the company will more than justify its market capitalisation one day, there is no guarantee that it will.
