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 31.58% and Operating profit at 34.47%
3
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CF(Y) Highest at Rs 113.68 Cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 4.27 times
- PBDIT(Q) Highest at Rs 85.79 cr.
4
With ROCE of 12.5, it has a Attractive valuation with a 3.8 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 -8.17%, its profits have risen by 32.8% ; the PEG ratio of the company is 1.8
5
High Institutional Holdings at 20.2%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.17% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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
-8.17%
-0.28
29.67%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
31.58%
EBIT Growth (5y)
34.47%
EBIT to Interest (avg)
3.51
Debt to EBITDA (avg)
2.91
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
2.65
Tax Ratio
25.34%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
20.20%
ROCE (avg)
14.85%
ROE (avg)
16.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
49
Industry P/E
54
Price to Book Value
5.99
EV to EBIT
30.26
EV to EBITDA
22.29
EV to Capital Employed
3.78
EV to Sales
1.83
PEG Ratio
1.80
Dividend Yield
NA
ROCE (Latest)
12.50%
ROE (Latest)
12.15%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
19What is working for the Company
OPERATING CF(Y)
Highest at Rs 113.68 Cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 4.27 times
PBDIT(Q)
Highest at Rs 85.79 cr.
PAT(Q)
Highest at Rs 35.23 cr.
DEBT-EQUITY RATIO(HY)
Lowest at 0.87 times
NET SALES(Q)
Highest at Rs 1,038.59 cr
PBT LESS OI(Q)
At Rs 43.27 cr has Grown at 24.9% (vs previous 4Q average
EPS(Q)
Highest at Rs 2.95
-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 4.27 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 85.79 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 43.27 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 35.23 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 113.68 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,038.59 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 43.27 cr has Grown at 24.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 34.65 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 35.23 cr has Grown at 23.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 28.53 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.95
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






