This small-cap stock is a contract maker of top FMCG companies; do you hold it

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Dmart, Hindustan Unilever Limited, Marico and ITC are among the main customers of this company.





Hindustan Foods Ltd shares are up 12 percent to close at 558 rupees on November 10. The stock opened at Rs.504.65 and made intraday highs and lows of Rs.566 and Rs.498.65 respectively.



Hindustan Foods Ltd has 17 plants mainly across India and operates as a contract manufacturer for FMCG companies. It is involved in the manufacture of products in various categories such as personal care, home care, and food and beverage. The company is also active in leather footwear and accessories, detergents and pest control products.



Hindustan Food Limited has partnerships with reputable companies such as Dmart, Hindustan Unilever Limited, Marico, Scholl, Arvind, Wipro, ITC Limited, Godrej, Reckitt etc. It acts as a contract manufacturer for international clothing brands such as Hush Puppies, Gabor, Steve Madden, Arrow, US Polo and Louis Philippe.



Hindustan Food was established in 1988 as a joint venture with Glaxo India Limited and Dempo Group. Speaking of ownership patterns, 64.85 percent of the company’s shares are owned by the promoters, 6.04 percent by FIIs, 6.55 percent by DIIs and the remaining 22.56 percent by non-institutional investors.



The company has a market capitalization 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, corporate revenue increased by 40.49 per cent yoy to Rs.661.79 crore from Rs.471 crore reported in the second quarter of FY22. While the net profit rose 62.5 percent year-on-year to reach Rs. 18.93 crore.






























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