Why this agri-commodity stock deserves your attention in 2025?

The company’s 4:1 rights issue, priced at just Re. 1 per share, offered shareholders an unparalleled opportunity to boost their equity at a bargain.

NHC Foods Limited, a leading exporter of agricultural commodities and spices, is emerging as a hot pick for investors looking for exceptional returns. The recent Rs 47 crore rights issue, oversubscribed by a staggering 3x, has reinforced market confidence in the company’s promising growth trajectory. This response showcases the strong trust investors have in NHC Foods’ strategic direction and management.

The company’s 4:1 rights issue, priced at just Re. 1 per share, offered shareholders an unparalleled opportunity to boost their equity at a bargain. With proceeds channelled towards enhancing working capital and repaying secured loans, NHC Foods is poised to amplify profitability and operational efficiency, ensuring robust shareholder value.

Impressive Financial Performance
NHC Foods’ financial performance for H1 FY25 speaks volumes about its growth momentum. The company recorded a fantastic half-yearly net profit of Rs 4.06 crore (Rs 405.97 lakh) in just six months of FY25, almost doubling the full-year net profit of Rs 2.35 crore (Rs 234.74 lakh) achieved in FY24.

• Net profit surged by 377 per cent to Rs 2.05 crore (Rs 205.08 lakh) in September 2024 compared to Rs 42.95 lakh in September 2023.
• Revenue climbed significantly, up 60.25 per cent to Rs 66.39 crore (Rs 6,639.18 lakh) in September 2024 from Rs 41.42 crore (Rs 4142.39 lakh) in the same period last year.
• For the quarter ending June 2024, net profit jumped by 391 per cent to Rs 2.01 crore (Rs 200.88 lakh) from Rs 40.9 lakh in June 2023, with revenue rising by an impressive 73 per cent to Rs 74.25 crore (Rs 7424.88) lakh from Rs 42.70 crore (Rs 4269.91 lakh) in June 2023.

Leading Brands and Global Reach
NHC Foods, with exports to over 30 countries, is renowned for its signature brands Indi Bite, Eat’mor, and Saaz. These brands have cemented the company’s reputation in both domestic and international markets. Market analysts predict a potential tenfold increase in the stock price within six months, making NHC Foods a compelling buy. This optimistic projection is underpinned by the company’s investments in technology, product innovation, and expansion into new international markets.

Management Comments
“We are committed to delivering sustainable growth and value to our shareholders,” said Apoorva Shah, Chairman & Managing Director of NHC Foods.

“The overwhelming response to our rights issue is a testament to the trust our investors place in us. With enhanced working capital and reduced debt, we are ready to seize new growth opportunities and strengthen our market presence,” he further added.

Should You Invest?
NHC Foods’ strategic focus on geographical diversification and robust financial management makes it a potential multibagger stock. For investors seeking high-growth opportunities, this is the moment to act and secure a stake in one of the market’s most promising companies.

Disclaimer: The article is for informational purposes only and not investment advice.