NHC Foods Experiences Revision in Stock Evaluation Following Strong Q2 FY24-25 Performance

NHC Foods, a microcap player in the FMCG sector, has recently experienced a revision in its stock evaluation by MarketsMOJO. The company reported a very positive financial performance for the second quarter of FY24-25, showcasing a significant growth in net profit of 29.01%. This marks a continuation of positive results, as NHC Foods has declared favorable outcomes for three consecutive quarters.
In terms of sales, NHC Foods achieved net sales of Rs 133.51 crore, reflecting a robust growth rate of 60.16%. The company's operating profit also reached a notable high of Rs 3.25 crore, with an impressive operating profit to net sales ratio of 4.91%. Despite these strong indicators, the stock's promoter holding has seen a decrease, now standing at 8.16%.

While the stock is technically positioned in a mildly bullish range, it faces challenges with long-term fundamental strength, evidenced by an average return on capital employed (ROCE) of 6.00% and a high debt to EBITDA ratio of 4.91 times. Nevertheless, NHC Foods has been added to MarketsMOJO's list, reflecting its consistent returns and performance relative to the BSE 500 over the past three years.