Check Before You Invest : Hindustan Foods Ltd

BSE: 519126 NSE: HNDFDS ISIN: INE254N01026

| Sector: Diversified | Industry: Diversified

Snapshot

Q.1 Which industry/sub-sector does Hindustan Foods Ltd belong to?

Hindustan Foods Ltd belongs to the Diversified sector, operating specifically within the Diversified segment.

Q.2 Is Hindustan Foods Ltd a good quality company?

Hindustan Foods Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Hindustan Foods Ltd undervalued or overvalued?

Hindustan Foods Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Hindustan Foods Ltd a good buy now?

Hindustan Foods Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindustan Foods Ltd?

Hindustan Foods Ltd revenue growth is 14.8% for FY-2025, which is below its 5-year CAGR of 28.78%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Hindustan Foods Ltd?

Hindustan Foods Ltd Return on capital employed is 14.94% for FY-2025, which is below its 5-year historical median of 17.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Hindustan Foods Ltd?

Hindustan Foods Ltd Return on Asset is 6.09%, which is in line with its 5-year historical median of 6.09%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hindustan Foods Ltd?

Hindustan Foods Ltd Return on equity is 15.08% for FY-2025, which is below its 5-year historical median of 17.69%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Hindustan Foods Ltd?

Hindustan Foods Ltd Cash conversion cycle is 29 days, above its 5-year historical median of 8 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.61	2.24
ROE	15.08	17.69
ROCE	14.94	17.39
Cash Conversion Cycle	29 days	8 days

Q.6 Gross Profit margin of Hindustan Foods Ltd?

Hindustan Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2025, which is above its 5-year median of 5.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Hindustan Foods Ltd?

Hindustan Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.78% for FY-2025, which is above its 5-year median of 6.18% indicating increasing margins.

Q.8 Net Profit Margin of Hindustan Foods Ltd?

Hindustan Foods Ltd Net Profit Margin is 3.78% for FY-2025, is above with its 5-year median of 2.71%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.7	5.3
Operating Profit Margin	7.78	6.18
Net Profit Margin	3.78	2.71

Q.9 Debt to Equity ratio of Hindustan Foods Ltd?

Hindustan Foods Ltd Debt-to-Equity ratio is 0.62, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hindustan Foods Ltd?

Hindustan Foods Ltd Debt to cash flow from operations is 6.17, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Foods Ltd?

Promoters hold 61.31% of the Hindustan Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Foods Ltd vs industry peers?

Hindustan Foods Ltd revenue CAGR is 28.78%, compared to the industry median CAGR of 9.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14.8	9.6
Gross Profit Growth	36.3	20.3
Operating Profit Growth	30.7	8.4
Net Profit Growth	32.1	35

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.61	0.83
ROE	15.08	5.7
ROCE	14.94	8.07
Cash Conversion Cycle (days)	29.23	59

Valuation & price assessment

Q.1 Stock return of Hindustan Foods Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 38.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	38.8%	3.5%	-3.6%	-3.6%

Q.3 Valuation ratios of Hindustan Foods Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	49.93	85.79	16.35
Price to Book	5.84	14.86	1.78
Price to Sales	1.99	2.47	1.43
EV to EBITDA	24.79	39.76	9.56

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