Himalaya Food International Shows Positive Growth in Financial Performance for Q2 FY25

Himalaya Food International, a microcap FMCG company, has recently announced its financial results for the quarter ending September 2024. According to the data released on October 7, 2024, the company has shown positive growth in its financial performance.

The company’s score has improved from 4 to 14 in the last three months, indicating a significant improvement in its overall financial health. This can be attributed to the increase in Profit Before Tax less Other Income (PBT) and Profit After Tax (PAT) by 96.2% and 57.1% respectively, compared to the average of the previous four quarters.

Himalaya Food’s Operating Profit (PBDIT) for the quarter was the highest in the last five quarters, showing a positive trend. The company’s efficiency has also improved, as seen in the increase in Operating Profit Margin to 30.33%. This is the highest in the last five quarters.

The company’s profitability has also increased, with the highest PBT and PAT in the last five quarters. This has resulted in a higher Earnings per Share (EPS) of Rs 0.35, indicating that the company has created higher earnings for its shareholders.

However, there are some areas where Himalaya Food needs to focus on. The Net Sales for the nine-month period have shown a decline of -45.91% year on year, indicating a negative trend. The company’s Operating Cash Flow for the last three years has also been the lowest at Rs -2.75 Cr, indicating a decrease in cash revenues from business operations.

Overall, Himalaya Food International has shown positive growth in its financial performance for the quarter ending September 2024. However, the company needs to address the decline in sales and cash flow to sustain its growth in the long run. Based on these financials, MarketsMOJO has given a ‘Sell’ call for Himalaya Food’s stock.