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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 519126 | NSE: HNDFDS

Fundamental Analysis of Hindustan Foods Ltd

About the Company - Hindustan Foods Ltd

Hindustan Foods Ltd. is a Public Limited Listed company incorporated on 31/12/1984 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L15139MH1984PLC316003 and registration number is 000601. Currently Company is involved in the business activities of Processing and blending of tea including manufacture of instant tea. Company’s Total Operating Revenue is Rs. 2020.70 Cr. and Equity Capital is Rs. 22.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Food Processing - Bakery/Dairy/Fruits/OthersOffice No. 3, Level 2, Centrium, Phoenix Market City, Mumbai Maharashtra 400070investorrelations@thevanitycase.com
http://www.hindustanfoodslimited.com
Management
NamePosition Held
Mr. Shrinivas V DempoNon Executive Director
Mr. Sameer R KothariManaging Director
Mr. Ganesh T ArgekarExecutive Director
Mr. Nikhil K VoraNon Executive Director
Mr. Sarvjit Singh BediNon Executive Director
Mr. Neeraj ChandraIndependent Director
Mr. Shashi K KalathilChairperson & Independent Director
Ms. Honey VaziraniIndependent Woman Director
Mr. Sandeep MehtaIndependent Director
Ms. Amruta AdukiaNon Executive Director

Basic Stock Data of Hindustan Foods Ltd

Last Updated: July 24, 2024, 11:39 pm

Market Cap 6,866 Cr.
Current Price 600
High / Low630/461
Stock P/E73.8
Book Value 56.4
Dividend Yield0.00 %
ROCE15.4 %
ROE18.2 %
Face Value 2.00
PEG Ratio2.38

Data Source: screener.in

Competitors of Hindustan Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eco Friendly Food Processing Park Ltd 229 Cr. 9.2410.6/9.241,907 1.770.00 %0.26 %0.27 % 1.00
Chothani Foods Ltd 30.5 Cr. 29.438.0/13.8218 14.80.00 %5.33 %2.06 % 10.0
Chordia Food Products Ltd 35.4 Cr. 88.0115/78.044.3 36.40.00 %7.37 %5.66 % 10.0
Ceeta Industries Ltd 49.3 Cr. 34.045.7/27.0 16.90.00 %3.55 %6.32 % 1.00
Bambino Agro Industries Ltd 285 Cr. 356470/29026.1 1160.45 %13.1 %12.4 % 10.0
Industry Average31,775.54 Cr1,278.93192.78137.920.21%23.33%21.56%6.06

Hindustan Foods Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales384491457471527581598662679660619675729
Expenses363462432443498551560620635611569621672
Operating Profit21292528293038424449505457
OPM %5%6%6%6%6%5%6%6%6%7%8%8%8%
Other Income1111111211121
Interest555555791010111315
Depreciation455667910109111214
Profit before tax12201618182023252531293129
Tax %5%36%37%38%37%38%35%25%33%35%21%21%24%
Net Profit12131011121215191720232522
EPS in Rs1.111.220.961.031.101.091.321.681.511.792.072.191.95

Last Updated: July 10, 2024, 2:29 pm

Hindustan Foods Ltd Quarterly Chart

Hindustan Foods Ltd Profit & Loss

Last Updated: July 10, 2024, 2:29 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4927721,4072,0402,5982,683
Expenses4597171,3191,9272,4252,473
Operating Profit335588113173210
OPM %7%7%6%6%7%8%
Other Income113455
Interest81119203648
Depreciation71119253746
Profit before tax18345271104121
Tax %35%35%29%38%32%
Net Profit122237457190
EPS in Rs1.762.073.523.966.318.00
Dividend Payout %0%0%0%0%0%

Hindustan Foods Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)83.33%68.18%21.62%57.78%
Change in YoY Net Profit Growth (%)0.00%-15.15%-46.56%36.16%

Hindustan Foods Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:41%
3 Years:25%
TTM:6%
Compounded Profit Growth
10 Years:%
5 Years:51%
3 Years:36%
TTM:31%
Stock Price CAGR
10 Years:55%
5 Years:49%
3 Years:15%
1 Year:3%
Return on Equity
10 Years:%
5 Years:18%
3 Years:19%
Last Year:18%

Last Updated: July 25, 2024, 8:44 am

Hindustan Foods Ltd Balance Sheet

Last Updated: July 10, 2024, 2:29 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital132121232323
Reserves51165232281352401
Preference Capital11222
Borrowings98164216349512580
Other Liabilities104189267332449491
Total Liabilities2665397379841,3351,494
Fixed Assets133250308427554699
CWIP026538712533
Investments020000
Other Assets133261375470656763
Total Assets2665397379841,3351,494

Hindustan Foods Ltd Reserves and Borrowings Chart

Hindustan Foods Ltd Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -51772369987
Cash from Investing Activity -40-145-90-139-220-381
Cash from Financing Activity 431533491128298
Net Cash Flow-22416-1273

Hindustan Foods Ltd Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days3218131315
Inventory Days5474585668
Days Payable8494746469
Cash Conversion Cycle2-2-3514
Working Capital Days611131721
ROCE %17%17%16%18%

Hindustan Foods Ltd Financial Efficiency Indicators Chart

Hindustan Foods Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters62.62%62.62%62.62%64.85%64.85%64.85%64.85%64.85%64.85%64.85%64.85%63.82%
FIIs6.58%6.57%6.50%6.13%6.04%6.04%6.57%6.56%6.59%6.58%6.70%6.70%
DIIs6.96%6.94%6.92%6.53%6.53%6.55%6.55%6.64%6.58%6.03%5.96%7.18%
Public23.84%23.86%23.95%22.50%22.59%22.56%22.04%21.94%22.00%22.54%22.50%22.30%
No. of Shareholders35,03638,04838,44637,07838,45950,57653,71160,48969,98880,58786,14785,364

Hindustan Foods Ltd Shareholding Pattern Chart

No. of Hindustan Foods Ltd Shareholders

Hindustan Foods Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Union Small Cap Fund101,2020.495.4221,5262024-07-23370.14%
Motilal Oswal Nifty Microcap 250 Index Fund21,5260.31.1521,5262024-07-230%

Hindustan Foods Ltd ROCE Trend

Hindustan Foods Ltd EPS Trend

Hindustan Foods Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)8.236.3119.8116.2311.53
Diluted EPS (Rs.)8.236.3119.8116.2311.53
Cash EPS (Rs.)12.909.6331.7125.2616.05
Book Value[Excl.RevalReserv]/Share (Rs.)56.3933.18134.88104.1087.83
Book Value[Incl.RevalReserv]/Share (Rs.)56.3933.18134.88104.1087.83
Revenue From Operations / Share (Rs.)240.43230.45904.76654.00364.13
PBDIT / Share (Rs.)19.9815.7652.5840.5226.84
PBIT / Share (Rs.)15.2012.4541.7132.4121.52
PBT / Share (Rs.)10.259.2732.7323.6016.34
Net Profit / Share (Rs.)8.126.3120.8417.1510.72
NP After MI And SOA / Share (Rs.)8.126.3119.8116.2310.34
PBDIT Margin (%)8.306.845.816.197.37
PBIT Margin (%)6.315.404.604.955.90
PBT Margin (%)4.264.023.613.604.48
Net Profit Margin (%)3.372.732.302.622.94
NP After MI And SOA Margin (%)3.372.732.182.482.83
Return on Networth / Equity (%)14.3919.0114.6815.5811.76
Return on Capital Employeed (%)14.0816.8915.4016.0213.35
Return On Assets (%)4.835.324.524.954.06
Long Term Debt / Equity (X)0.761.020.830.840.73
Total Debt / Equity (X)1.061.311.070.840.78
Asset Turnover Ratio (%)1.692.312.552.241.91
Current Ratio (X)1.261.181.171.301.28
Quick Ratio (X)0.540.520.530.660.72
Inventory Turnover Ratio (X)5.648.029.248.618.17
Interest Coverage Ratio (X)4.044.965.864.605.18
Interest Coverage Ratio (Post Tax) (X)2.642.993.322.953.07
Enterprise Value (Cr.)6030.766130.984405.094600.721298.89
EV / Net Operating Revenue (X)2.192.362.163.321.68
EV / EBITDA (X)26.3534.5037.1653.5622.83
MarketCap / Net Operating Revenue (X)1.962.192.023.231.54
Price / BV (X)8.3515.2113.5520.276.40
Price / Net Operating Revenue (X)1.962.192.023.231.54
EarningsYield0.010.010.010.010.01

Hindustan Foods Ltd Profitability Ratios (%)

Hindustan Foods Ltd Liquidity Ratios

Hindustan Foods Ltd Liquidity Ratios (%)

Hindustan Foods Ltd Interest Coverage Ratios (X)

Hindustan Foods Ltd Valuation Ratios

Fair Value

Fair Value: 772.69

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 28.78% compared to the current price 600

Intrinsic Value: 1,012.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 68.76% compared to the current price 600

Last 5 Year EPS CAGR: 31.05%

*Investments are subject to market risks

Strength and Weakness of Hindustan Foods Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 13.60, which is a positive sign.
  2. The company has shown consistent growth in sales (211.83 cr) and profit (66.67 cr) over the years.
  1. The stock has a low average ROCE of 13.60%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 3.20, which may not be favorable.
  3. The company has higher borrowings (346.00) compared to reserves (284.00), which may suggest financial risk.

Should I Buy Hindustan Foods Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Foods Ltd:
    1. Net Profit Margin: 3.37%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.08% (Industry Average ROCE: 23.33%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✗ ROE%: 14.39% (Industry Average ROE: 21.56%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.64
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.54
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 73.8 (Industry average Stock P/E: 192.78)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 1.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Hindustan Foods Ltd?

The latest fair value of Hindustan Foods Ltd is ₹772.69.

What is the Market Cap of Hindustan Foods Ltd?

The Market Cap of Hindustan Foods Ltd is 6,866 Cr..

What is the current Stock Price of Hindustan Foods Ltd as on 25 July 2024?

The current stock price of Hindustan Foods Ltd as on 25 July 2024 is 600.

What is the High / Low of Hindustan Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Foods Ltd stocks is 630/461.

What is the Stock P/E of Hindustan Foods Ltd?

The Stock P/E of Hindustan Foods Ltd is 73.8.

What is the Book Value of Hindustan Foods Ltd?

The Book Value of Hindustan Foods Ltd is 56.4.

What is the Dividend Yield of Hindustan Foods Ltd?

The Dividend Yield of Hindustan Foods Ltd is 0.00 %.

What is the ROCE of Hindustan Foods Ltd?

The ROCE of Hindustan Foods Ltd is 15.4 %.

What is the ROE of Hindustan Foods Ltd?

The ROE of Hindustan Foods Ltd is 18.2 %.

What is the Face Value of Hindustan Foods Ltd?

The Face Value of Hindustan Foods Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Foods Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE