Packaged foods stocks rally on strong Q4 results

Heritage Foods, DFM Foods and Tasty Bite Eatables have rallied between 7% and 13% on the BSE.

Shares of companies engaged in the packaged foods business such as Britannia Industries, Heritage Foods, DFM Foods and Tasty Bite Eatables have rallied between 3% and 13% in an otherwise subdued market after these companies reported a strong set of numbers for the quarter ended March 31, 2015 (Q4).

Britannia Industries was up 3.3% at Rs 2,598, extending its 10% rally in the past three trading sessions on the BSE, after the company reported a strong 55% year-on-year jump in consolidated net profit at Rs 167 crore for the quarter ended March 2015.

The company, a major player in the Indian foods market with leadership position in the bakery category, had posted a profit of Rs 108 crore in the corresponding quarter last year. Currently, the stock is quoting at its lifetime high market price on the BSE.

Heritage Foods has surged 13% to Rs 399, extending its previous day’s 13% rally on the National Stock Exchange (NSE), after reporting 84% year-on-year (YoY) jump in consolidated net profit at Rs 12.75 crore in the March 2015 quarter. The company had posted a profit of Rs 6.92 crore in the same quarter last year.

Tasty Bite Eatables has rallied 10% to Rs 1,375 on the BSE. The stock appreciated 41% in past 11 trading sessions from Rs 975 on May 12 after the company's net profit more than doubled at Rs 3.18 crore in the March quarter. It had posted a profit of Rs 1.46 crore in the previous year's corresponding quarter.

DFM Foods has soared 7% to Rs 510, extending its past three day’s gains, after reporting a 73% Y-o-Y growth in net profit at Rs 5.16 crore in the March quarter against Rs 2.98 crore in the year-ago quarter. Currently, the stock is trading at its record high and has zoomed 31% in the past four days from Rs 390 on May 21.