This small-cap stock is a contract manufacturer of top FMCG companies; do you hold it?
Dmart, Hindustan Unilever Limited, Marico, and ITC are among the marquee clients of this company.
Shares of Hindustan Foods Ltd have surged 12 per cent and closed at Rs 558, on November 10. The stock opened at Rs 504.65 and made an intraday high and low of Rs 566 and Rs 498.65, respectively.
Hindustan Foods Ltd primarily has 17 plants located across India and operates as a contract manufacturer for FMCG companies. It is involved in the manufacturing of products across categories like personal care, home care, and food and beverages. The company is also engaged in leather shoes and accessories, detergents, and pest control product business.
Hindustan Food limited has partnerships with marquee players like Dmart, Hindustan Unilever Limited, Marico, Scholl, Arvind, Wipro, ITC Limited, Godrej, Reckitt, etc. It acts as a contract manufacturer for international apparel brands like Hush Puppies, Gabor, Steve Madden, Arrow, U.S. Polo, and Louis Philippe.
Hindustan Food was founded in 1988 as a joint venture with Glaxo India Limited and Dempo group. Talking about the shareholding pattern, 64.85 per cent of the company’s stake is owned by the promoters, 6.04 per cent by FIIs, 6.55 per cent by DIIs, and the rest 22.56 per cent by non-institutional investors.
The company has a market capitalisation of Rs 6300 crore and is currently trading at a PE multiple of 96x. The stock has a 52-week high and low of Rs 569 and Rs 325, respectively.
The company recently announced its September Quarterly Results. For the Q2FY23 quarter, the company revenue increased YoY by 40.49 per cent to Rs 661.79 crore from Rs 471 crore, reported in Q2FY22. While the net profit jumped by 62.5 per cent YoY and came in at Rs 18.93 crore.