Hindustan Foods hits the roof after bagging orders

Hindustan Foods hit an upper circuit limit of 10% at Rs 176.30 at 14:49 IST on BSE after the company said it bagged orders from two new customers for manufacturing and supply of leather shoes.

The announcement was made during trading hours today, 7 July 2017.

Meanwhile, the S&P BSE Sensex was up 26.44 points, or 0.08% to 31,395.78.

On the BSE, 2,556 shares were traded in the counter so far, compared with average daily volumes of 799 shares in the past one quarter. The stock had hit a low of Rs 173 in intraday trade. The stock hit a record high of Rs 228.80 on 6 February 2017. The stock hit a 52-week low of Rs 91.40 on 8 July 2016.

The stock had outperformed the market over the past one month till 6 July 2017, rising 12.37% compared with 0.31% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 1.11% as against Sensex's 5.60% rise. The scrip had outperformed the market in past one year, rising 66.81% as against Sensex's 15.32% rise.

The small-cap company has equity capital of Rs 12.99 crore. Face value per share is Rs 10.

Hindustan Foods received the orders from Reliance Brands (under Steve Madden brand) and Arvind Lifestyle Brands (under US Polo & Arrow brands).

In December 2016, Hindustan Foods had acquired certain moveable and immovable assets of Ponds Export, a subsidiary of Hindustan Unilever. Post this acquisition, the company started manufacturing leather shoe uppers and accessories at Puducherry. The company has been able to integrate the operations and has managed the transition without any disruption of supplies to the European Customers.

Net profit of Hindustan Foods declined 55.23% to Rs 0.77 crore on 277.88% rise in net sales to Rs 17.08 crore in Q4 March 2017 over Q4 March 2016.

Hindustan Foods manufactures cereal-based food products and a range of instant mixes, baby foods, instant porridges, breakfast cereals and health drinks.

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