Shares of smallcap Hindustan Foods jumped 9 per cent in Monday’s trade, taking their six-day winning gains to 30 per cent, thanks to a strong set of quarterly results. Today News 24stan Foods scrip is also rising as it been included in the MSCI India Domestic Small Cap Index.
Following the developments, the stock rose 9.16 per cent to hit a high of Rs 610 on BSE. With this, the stock is up 57 per cent year-to-date. The MSCI changes in constituents for the MSCI India Domestic Small Cap Index will take place, as of the close of November 30.
Hindustan Foods reported a 73 per cent YoY jump in net profit at Rs 18.90 crore for the September quarter compared with Rs 10.90 crore in the year-ago quarter.
Revenue for the quarter rose 41 per cent to Rs 663.7 crore from Rs 471.90 crore in the same quarter last year. Ebitda grew 49 per cent to Rs 44 crore from Rs 29.60 crore YoY.
Hindustan Foods offers dedicated and shared manufacturing services to FMCG corporates, who are looking to minimise cost in the post-GST environment.
In 2013, Vanity Case India bought a controlling stake in the company and, since then, Hindustan Foods has diversified across various FMCG categories with manufacturing competencies in food & beverages, home care, fabric care, beauty & personal care, health care & wellness, leather & sports footwear, and pest control, amongst others.
The company’s recent acquisitions of Aero Care Personal Products LLP, and Reckitt Benckiser Scholl India have started contributing to the consolidated numbers, the company said last week.
The ice cream facility in Lucknow, set up by the wholly owned subsidiary, has also started operating, it said adding that “this being the lean season, the numbers are subdued.”
The company’s capex plans, announced earlier in August, for the expansion of the ice cream facility and the Soap Bar project in November 2020 continue to progress.
“The Ice Cream project in Lucknow has commenced production and we believe we are geared to cater to the demand for the upcoming season. Similarly, with the expansion in the beverage facility in Mysuru, we believe we are fully geared to cater to the beverage demand starting from Q4 of this year,” Managing Director Sameer R Kothari said last week.
Sixth Sense India Opportunities Fund, led by ex-managing director of IDFC Securities Nikhil Vora, held 3.7 per cent stake in this smallcap company, as of September 30.
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