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Check Before You Invest : NHC Foods Ltd

BSE: 517554 NSE: ISIN: INE141C01036
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does NHC Foods Ltd belong to?
NHC Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is NHC Foods Ltd a good quality company?
NHC Foods Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is NHC Foods Ltd undervalued or overvalued?
NHC Foods Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is NHC Foods Ltd a good buy now?
NHC Foods Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NHC Foods Ltd?
NHC Foods Ltd revenue growth is 63.2% for FY-2025 , which is above its 5 year CAGR of 21% , indicating faster growth.
Q.2 Gross Profit margin of NHC Foods Ltd?
NHC Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025 , which is above its 5 year median of 2.4% , indicating increasing margins.
Q.3 Operating Profit Margin of NHC Foods Ltd?
NHC Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.5% for FY-2025 , which is above its 5 year median of 3.18% indicating increasing margins.
Q.4 Net Profit Margin of NHC Foods Ltd?
NHC Foods Ltd Net Profit Margin is 1.96% for FY-2025 , is above with its 5 year median of 1.07%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 3 2.4
Operating Profit Margin 4.5 3.18
Net Profit Margin 1.96 1.07
Q.5 Return on Asset of NHC Foods Ltd?
NHC Foods Ltd Return on Asset is 4.38%, which is above its 5 year historical median of 2.62%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of NHC Foods Ltd?
NHC Foods Ltd Return on equity is 12.18% for FY-2025 , which is above its historical median of 7.15%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of NHC Foods Ltd?
NHC Foods Ltd Return on capital employed is 16.7% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of NHC Foods Ltd?
NHC Foods Ltd Cash conversion cycle is 102 days, above its historical median of 69 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.23 2.31
ROE 12.18 7.15
ROCE 16.7 12.41
Cash Conversion Cycle 102 days 69 days
Q.9 Debt to Equity ratio of NHC Foods Ltd?
NHC Foods Ltd Debt-to-Equity ratio is 0.38 , which is lower with the industry average of 0.49 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of NHC Foods Ltd?
NHC Foods Ltd Debt to cash flow from operations is -0.82 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NHC Foods Ltd?
Promoters hold 0.00% of the NHC Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NHC Foods Ltd vs industry peers?
NHC Foods Ltd revenue CAGR is 21.00% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 341.4 117.4
Gross Profit 10.2 5
Operating Profit 14.8 7
Net Profit 6.7 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.23 1.2
ROE 12.18 7.15
ROCE 16.7 10.41
Cash Conversion Cycle (days) 101.61 51

Valuation & price assessment

Q.1 Stock return of NHC Foods Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.6% 36.8% -3.4% -2.2%
Q.3 Valuation ratios of NHC Foods Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10 6.43 51.80
Price to Book 0.59 0.42 2.42
Price to Sales 0.12 0.06 1.42
EV to EBITDA 5.69 6.48 14.55

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