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Check Before You Invest : Hoac Foods India Ltd

BSE: 0 NSE: HOACFOODS ISIN: INE0S6S01017
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Hoac Foods India Ltd belong to?
Hoac Foods India Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Hoac Foods India Ltd a good quality company?
Hoac Foods India Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hoac Foods India Ltd undervalued or overvalued?
Hoac Foods India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 50.66 53.65
Price to Book 18.74 8.47
Price to Sales 4.57 3.79
EV to EBITDA 30.69 31.12
Q.4 Is Hoac Foods India Ltd a good buy now?
Hoac Foods India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Hoac Foods India Ltd?
Hoac Foods India Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is above its 5-year median of 8.3%, indicating increasing margins.

Q.2 Operating Profit Margin of Hoac Foods India Ltd?
Hoac Foods India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.65% for FY-2025, which is above its 5-year median of 9.74% indicating increasing margins.

Q.3 Net Profit Margin of Hoac Foods India Ltd?
Hoac Foods India Ltd Net Profit Margin is 9.47% for FY-2025, is above its 5-year median of 4.17%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 14.3 8.3
Operating Profit Margin (%) 15.65 9.74
Net Profit Margin (%) 9.47 4.17

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Hoac Foods India Ltd?
Hoac Foods India Ltd Return on Asset is 17.74%, which is above its 5-year historical median of 11.89%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Hoac Foods India Ltd?
Hoac Foods India Ltd Return on capital employed is 37.3% for FY-2025, which is in line with its 5-year historical median of 37.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Hoac Foods India Ltd?
Hoac Foods India Ltd Return on equity is 33.92% for FY-2025, which is below its 5-year historical median of 40.93%, indicating the business is making worse use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Hoac Foods India Ltd?
Hoac Foods India Ltd Debt-to-Equity ratio is 0.39, which is lower the industry average of 0.49, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Hoac Foods India Ltd?
Hoac Foods India Ltd Debt to cash flow from operations is -3.75, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Hoac Foods India Ltd?

Q.1 Promoter shareholding and pledge status of Hoac Foods India Ltd?
Promoters hold 62.08% of the Hoac Foods India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hoac Foods India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hoac Foods India Ltd vs industry peers?
Hoac Foods India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 7.03%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 7
Gross Profit Growth (%) 300 13.3
Operating Profit Growth (%) 100 12.6
Net Profit Growth (%) 200 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.88 1.2
ROE (%) 33.92 7.22
ROCE (%) 37.3 11.34
Cash Conversion Cycle (days) 85.2 48

Valuation & price assessment

Q.1 Stock return of Hoac Foods India Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 215% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 215%
Q.2 Valuation ratios of Hoac Foods India Ltd vs historical?
The current P/E ratio of 50.66 is lower than its historical median of 53.65, indicating that the stock is trading below its historical average valuation.
Q.3 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 50.66 53.65 26.55
Price to Book 18.74 8.47 2.53
Price to Sales 4.57 3.79 1.43
EV to EBITDA 30.69 31.12 14.38

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