Key Events This Week
9 Feb: Strong quarterly turnaround reported; stock jumps to Rs.0.81 (+3.85%)
10 Feb: Profit-taking leads to 2.47% decline to Rs.0.79
12 Feb: Continued pressure with Rs.0.78 close amid Sensex dip
13 Feb: Week ends at Rs.0.77, down 1.28% for the week
9 February: Quarterly Turnaround Spurs Initial Gains
NHC Foods Ltd reported a strong quarterly performance for the period ended December 2025, which triggered a positive market reaction. The company posted net sales of ₹129.19 crores, a 22.6% increase compared to the average of the previous four quarters. Profit before tax excluding other income reached ₹2.50 crores, while profit after tax hit a record ₹2.55 crores, with earnings per share at ₹0.04. This marked a significant reversal from prior negative trends, reflected in the financial trend score improving from -8 to +10.
The stock responded positively, closing at Rs.0.81, up 3.85% from the previous close of Rs.0.78, with intraday highs touching Rs.0.84. This gain outpaced the Sensex’s 1.04% rise on the same day, signalling investor optimism about the company’s operational turnaround despite ongoing sector challenges.
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10 February: Profit-Taking and Volume Drop Weigh on Price
Following the initial surge, the stock retreated 2.47% to close at Rs.0.79 amid lower trading volumes of 3.17 million shares, down sharply from the previous day’s 15 million. Despite the Sensex continuing to advance by 0.25%, NHC Foods’ decline suggested profit-taking by investors cautious about the sustainability of the turnaround. The company’s rising interest expenses, which increased by nearly 30% to ₹1.52 crores, remained a concern, potentially limiting margin expansion despite revenue growth.
11 February: Price Stabilises as Market Awaits Further Clarity
The stock price held steady at Rs.0.79 with no change from the prior close, on subdued volume of 1.36 million shares. The Sensex gained a marginal 0.13%, reflecting a broadly stable market environment. Investors appeared to adopt a wait-and-see approach, digesting the quarterly results and monitoring the company’s ability to manage costs amid competitive pressures in the FMCG sector.
12 February: Decline Amid Broader Market Weakness
NHC Foods slipped 1.27% to Rs.0.78 as the Sensex fell 0.56%, closing at 37,049.40. Trading volumes remained low at 1.31 million shares. The stock’s decline aligned with the broader market weakness, but the sharper fall relative to the benchmark highlighted lingering investor caution. The company’s upgraded MarketsMOJO grade to “Sell” from “Strong Sell” reflected improved fundamentals but also underscored ongoing risks, including rising financing costs and sector competition.
13 February: Week Ends with Further Pressure
The week concluded with NHC Foods closing at Rs.0.77, down 1.28% for the week, underperforming the Sensex’s 0.54% decline. The final session saw the lowest volume of the week at 658,902 shares, indicating reduced investor interest. The stock’s inability to sustain gains despite the strong quarterly results suggests that market participants remain cautious about the company’s longer-term prospects amid cost pressures and historical underperformance relative to the benchmark.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.0.81 | +3.85% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.0.79 | -2.47% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.0.79 | +0.00% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.0.78 | -1.27% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.0.77 | -1.28% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: NHC Foods demonstrated a robust quarterly turnaround with a 22.6% increase in net sales and record quarterly profit after tax of ₹2.55 crores. The financial trend score improved markedly, and the MarketsMOJO grade was upgraded to “Sell” from “Strong Sell,” reflecting cautious optimism.
Cautionary Factors: Despite revenue growth, rising interest expenses increased by nearly 30%, posing a risk to net margins. The stock’s weekly decline of 1.28% and underperformance relative to the Sensex highlight ongoing investor concerns. Trading volumes diminished sharply after the initial surge, indicating limited conviction in the rally.
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Conclusion
NHC Foods Ltd’s week was defined by a strong quarterly earnings report that initially lifted the stock price, signalling a potential inflection point after a period of underperformance. However, the subsequent decline and subdued volumes reflect investor caution, primarily due to rising interest costs and the company’s historical volatility. While the upgraded analyst rating and improved financial metrics provide a foundation for optimism, the stock’s inability to sustain gains amid broader market fluctuations suggests that challenges remain. Investors will need to monitor upcoming quarters closely to assess whether NHC Foods can convert its revenue growth into consistent profitability and regain market confidence.
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