Why is Hindustan Foods Ltd ?
1
High Management Efficiency with a high ROCE of 15.10%
2
Healthy long term growth as Net Sales has grown by an annual rate of 28.05% and Operating profit at 33.56%
3
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.79 times
- PBDIT(Q) Highest at Rs 91.14 cr.
- PBT LESS OI(Q) Highest at Rs 48.70 cr.
4
With ROCE of 12.5, it has a Attractive valuation with a 3.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -15.77%, its profits have risen by 34% ; the PEG ratio of the company is 1.5
5
High Institutional Holdings at 20.35%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -3.39% in the last 1 year, its fall in the stock was much higher with a return of -15.77%
How much should you hold?
- Overall Portfolio exposure to Hindustan Foods should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hindustan Foods for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Hindustan Foods
-16.22%
-0.57
27.82%
Sensex
-5.47%
-0.44
12.65%
Quality key factors
Factor
Value
Sales Growth (5y)
28.05%
EBIT Growth (5y)
33.56%
EBIT to Interest (avg)
3.50
Debt to EBITDA (avg)
2.91
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
2.65
Tax Ratio
24.46%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
20.35%
ROCE (avg)
14.85%
ROE (avg)
16.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
45
Price to Book Value
5.58
EV to EBIT
26.76
EV to EBITDA
19.83
EV to Capital Employed
3.56
EV to Sales
1.67
PEG Ratio
1.49
Dividend Yield
NA
ROCE (Latest)
12.50%
ROE (Latest)
12.15%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
19What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.79 times
PBDIT(Q)
Highest at Rs 91.14 cr.
PBT LESS OI(Q)
Highest at Rs 48.70 cr.
DEBT-EQUITY RATIO(HY)
Lowest at 0.87 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.13%
PAT(Q)
At Rs 38.80 cr has Grown at 22.8% (vs previous 4Q average
EPS(Q)
Highest at Rs 3.02
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Hindustan Foods
Operating Profit to Interest - Quarterly
Highest at 4.79 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 91.14 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 48.70 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 38.80 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.13%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 48.70 cr has Grown at 27.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 38.21 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 38.80 cr has Grown at 22.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 31.60 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.02
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.87 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio






