Micro-cap stock engaged in the food processing business hit a 5 percent upper circuit limit after reporting a 400 percent increase in net profits year-on-year.
Price Movement
In Tuesday’s trading session, the share price of NHC Foods Ltd hit a 5 percent upper price band reaching Rs.7.05 per share from its previous close of Rs.6.72 apiece.
Is NHC Foods a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
Financials
The rise in NHC Foods stock price was fueled by strong financial performance, with significant gains in both net profits and revenue from operations.
For the quarter ending June 2024, NHC Foods Ltd reported consolidated revenue of Rs.73.6 crores, a substantial 75.07 percent increase compared to Rs.42.04 crores in the same quarter last year. However, on a quarterly basis, the company saw a 7.5 percent decline from Rs.79.54 crores in Q4 FY24.
In terms of Profit After Tax (PAT), NHC Foods Ltd experienced an impressive 400 percent year-over-year growth, reaching Rs.2 crores in Q1 FY25, up from Rs.0.4 crores in June 2023. PAT also rose significantly by 85.18 percent from Rs.1.08 crores in Q4 FY24.
Financial ratios for NHC Foods Ltd show notable performance. The company reported an annual stock price CAGR (Compound Annual Growth Rate) rise of 44 percent. Price to earnings (P/E) ratio of the company is 33.6, which is below the industry average of 48.18. The company also showcases a strong current ratio of 2.47.
Regarding return ratios, the Return on Capital Employed (ROCE) is 9.97 percent and the Return on Equity (ROE) is 8.45 percent.
Global Presence
NHC Foods Limited has a strong global presence, exporting more than 50 varieties of products over 85 nations world-wide. Major spice importing countries of NHC Foods Ltd include USA, China, Brazil, Singapore, South Africa and many more.
Shareholding Composition
As per the June 2024 shareholding pattern, the promoters of NHC Foods Ltd hold a 40.82 percent stake, while Retail investors hold 59.18 percent stake.
Company Profile
NHC Foods Limited provides whole and ground spices products in India and internationally. The company offers whole and ground spices, oil seeds, lentils, raisins, grains, pulses, chick-peas, rice, and animal feeds, as well as dehydrated and assorted food, ready to eat food, and various other agri-products. It offers its products under the Eat Mor, Indibite, and NHC’s Saaz Masala- Sa Re Kha Na brand names.
Written by – Siddesh S Raskar
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