Company Overview

HOAC Foods India Limited, originally incorporated as "Hoac MP Atta Spices Manufacture Private Limited" on March 13, 2018, underwent several name changes before becoming a public limited company. The company was first renamed to "Hoac Foods India Private Limited" on November 3, 2021, and subsequently converted to a public limited company as "Hoac Foods India Limited" with a fresh certificate of incorporation issued on October 30, 2023, by the Registrar of Companies, New Delhi.

Headquartered in New Delhi, HOAC Foods India Limited is engaged in the manufacturing and distribution of high-quality natural food products under the brand name "HARIOM". The company manufactures flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil under the "HARIOM" brand. The company handpicks raw materials from various parts of the country and processes the products with utmost care without using artificial preservatives or chemicals, thereby creating a product portfolio of organic spices and flour that carry the freshness and goodness of each ingredient.

Business Operations and Market Presence

HOAC Foods manufactures flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil and markets & sells it in and around Delhi-NCR under the brand name HARIOM through its exclusive Brand Outlets. The company operates 15 retail outlets (5 owned and 10 franchise) across Delhi-NCR and has a growing presence in B2B via kirana stores and modern trade channels.

The company has 2 modern factories - Factory 1 at Village Bhondsi and Factory 2 at Village Mahinderwara. Their supply chain ensures fast delivery and fresh product availability. As of December 31, 2023, the company employed a total of 50 people with a manufacturing facility in Gurugram.

Recent Corporate Developments

- International Expansion: On July 3, 2025, HOAC Foods exported ₹1 crore FMCG products to the UK, marking the commencement of global operations. This represents a significant milestone for the company as it expands beyond its traditional Delhi-NCR market.

- QIP Closure: The company successfully closed a Qualified Institutional Placement (QIP) on July 3, 2025, issuing 4.97 lakh shares at ₹201 each, which was slightly discounted from the floor price. The company raised up to ₹1,000.00 lakhs through this QIP, with proceeds strategically deployed to accelerate growth plans, including funding working capital requirements for expected rapid growth in the coming years.

Financial Performance

Key Financial Metrics (As of July 2025)

- Market Cap: ₹105 Crores (up 44.3% in 1 year)

- Revenue: ₹26.5 Crores

- Profit: ₹2.50 Crores

- Book Value: ₹29.6

- Stock P/E: 41.8

- Promoter Holding: 70.1%

Historical Financial Growth

The company has demonstrated strong revenue growth, with revenue increasing from ₹12.10 Crores in FY23 to ₹15.63 Crores in FY24, and further to ₹26.48 Crores in FY25. Profit After Tax (PAT) increased substantially from ₹0.50 Crores in FY23 to ₹2.48 Crores in FY25.

The company achieved strong profitability ratios with ROCE at 25.00% and ROE at 33.71% in FY25. The company has maintained a good return on equity (ROE) track record with a 3-year ROE of 36.4%.

Stock Market Performance

The stock has a 52-week high of ₹256.65 and a 52-week low of ₹105. The stock made a strong market debut, with shares quoting at ₹139.65 on NSE, representing a premium of 191% compared to the issue price of ₹48.

The current P/E (price-to-earnings) ratio stands at 37.58, while the P/B (price-to-book) ratio is 28.04. The stock is trading at 9.19 times its book value.

Sector Classification and Competitive Position

HOAC Foods India Ltd belongs to the Consumer Staples sector and FMCG - Foods sub-sector. From a technical analysis perspective, the stock has an RS Rating of 94, which indicates excellent outperformance compared to other stocks, and belongs to a strong industry group of Food-Grain & Related with a Group Rank of 36.

Key Investment Considerations

The company presents a compelling investment case with a strong revenue growth trajectory, expanding market presence, and recent international expansion. While the company is reporting repeated profits, it is not currently paying out dividends. However, investors should note that debtor days have increased from 66.8 to 116 days, which may indicate working capital management challenges.

The successful QIP completion provides the company with additional capital for expansion plans, while the international market entry through UK exports opens new growth avenues beyond the traditional Delhi-NCR market. The company's focus on organic and natural products aligns well with growing consumer preferences for healthy food options.