Hindustan Foods Limited (HFL) is a prominent Indian company specializing in contract manufacturing for Fast-Moving Consumer Goods (FMCG) and leather products. With over three decades of experience, HFL possesses core competencies in FMCG and leather product manufacturing.
The company acts as a dedicated contract manufacturer for major FMCG brands, offering specialized services across various product categories:
- Home Care
- Personal Care (Beauty and Personal Care)
- Foods and Refreshments
- Health and Wellness
- Pest Control
- Leather, Sportswear, and Accessories
HFL provides dedicated and shared manufacturing services to FMCG corporations seeking cost optimization and quality enhancement in the post-GST environment.
The company's extensive product portfolio spans diverse segments:
- Food and Beverages: Breakfast cereals, instant porridges, spices, sauces, carbonated soft drinks, energy drinks, active water.
- Home Care: Fabric care products, home care solutions.
- Personal Care: Beauty products.
- Others: Pest control, leather goods, sportswear, and accessories.
Full Year FY2025:
- Consolidated Net Profit: ₹109.6 crore (18% YoY growth)
- Total Revenue: ₹3,578.9 crore (30% YoY growth)
Fourth Quarter FY2025:
- EBITDA: ₹80.3 crore (25% YoY growth)
- Profit Before Tax (PBT): ₹40.6 crore (47% YoY growth)
- Revenue (FY25): ₹3,578.9 crore (30% YoY growth)
- Net Profit (FY25): ₹109.6 crore (18% YoY growth)
- EBITDA (Q4 FY25): ₹80.3 crore (25% YoY growth)
- Profit Before Tax (Q4 FY25): ₹40.6 crore (47% YoY growth)
- Market Capitalization: ₹6,335.52 Cr (as of 25th June 2025)
- Stock Exchange: NSE / BSE
- Stock Symbol: HNDFDS
- 52-Week High: ₹686.40
- 52-Week Low: ₹421.50
- P/E Ratio: 57.78
- P/B Ratio: 9.79
- Sector: Consumer Staples
- Sub-Sector: FMCG - Foods
Hindustan Foods has been actively expanding its manufacturing capabilities across India:
- Commercial Operations: Launched at expanded facilities in Mysuru (Beverages) and Lucknow (Ice Cream) to meet peak seasonal demand.
- New Greenfield Plant: Commenced commercial production at the Nashik ice cream plant in May 2025, enhancing capacity for a key customer.
- Sustainability Initiatives: Approved acquisition of a significant minority stake in The Kabadiwala, a leading player in plastic scrap collection and recycling, demonstrating commitment to environmental sustainability and new revenue streams.
- Holding Company: Vanity Case India Pvt. Ltd. acquired Dempo Foods Pvt. Ltd. (Holding Company of HFL) in 2013, buying 74.45% of the paid-up share capital.
- Promoter Holding: 62.2%, indicating strong promoter confidence.
- Employee Stock Options: Shareholders approved ESOS 2025, granting stock options to employees and group company employees to align interests and enhance talent retention.
- Record Turnover: Driven by strong performance in seasonal categories like ice cream and beverages, despite deflationary pressures and volume softness in other segments.
- Highest-Ever Volumes: Achieved in beverages, ice creams, and footwear segments.
- Shoe Business Turnaround: The shoe business recorded operational profit in Q4 FY25. New investments are expected to lead to a complete turnaround in FY26.
- Management Optimism: Expressed confidence in various business segments and future prospects.
Hindustan Foods is well-positioned for future growth through strategic investments in high-growth segments:
- Beverage Segment: Continued expansion expected, with Mysuru recording its highest-ever output.
- OTC Pharma Division: Developing interesting opportunities with plans for scaling up, indicating diversification into pharmaceutical contract manufacturing.
Overall Investment Potential: Hindustan Foods Limited presents a compelling investment opportunity in India's contract manufacturing space, driven by its diversified product portfolio, robust financial performance, and strategic expansion plans poised for sustained growth in the evolving FMCG landscape.
