Hindustan Foods Ltd. (IN:HNDFDS)
:HNDFDS
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Hindustan Foods Ltd.
(HNDFDS)
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Rating:53Neutral
Price Target:
₹520.00
▲(1.16% Upside)
Action:Reiterated
Date:05/23/26
The score is held back primarily by weak cash conversion (sharp FY2026 operating cash flow decline and persistently negative free cash flow) despite strong top-line scaling and rising net income. Technical signals are neutral-to-slightly positive but not decisive. A high P/E further limits the score due to valuation risk.
Positive Factors
Contract manufacturing model
The contract-manufacturing business delivers recurring, fee-based revenue from FMCG brands, insulating HFL from brand-marketing risk. Outsourcing trends in FMCG support steady long-term demand, enabling predictable volumes, higher plant utilization and lower customer-acquisition costs over time.
Negative Factors
Weak cash conversion
Operating cash flow collapse and persistently negative free cash flow point to working-capital strain or heavy capex that profits don't convert into cash. This structural cash-generation shortfall raises funding risk, limits reinvestment and makes growth reliant on external financing or equity dilution over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Contract manufacturing model
The contract-manufacturing business delivers recurring, fee-based revenue from FMCG brands, insulating HFL from brand-marketing risk. Outsourcing trends in FMCG support steady long-term demand, enabling predictable volumes, higher plant utilization and lower customer-acquisition costs over time.
Read all positive factors
Hindustan Foods Ltd. (HNDFDS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹61.23B
Dividend YieldN/A
Average Volume (3M)10.66K
Price to Earnings (P/E)41.3
Beta (1Y)1.01
Revenue Growth16.38%
EPS Growth28.10%
CountryIN
Employees1,304
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)10.70
Shares Outstanding119,481,766
10 Day Avg. Volume22,693
30 Day Avg. Volume10,661
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)5.28
Price to Sales (P/S)1.45
P/FCF Ratio-19.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)17.1
Revenue Forecast (FY)₹50.70B
Hindustan Foods Ltd. Business Overview & Revenue Model
Company Description
Hindustan Foods Limited engages in the business of contract manufacturing of FMCG products in India. It offers extruded cereals and snacks, such as breakfast cereals, instant porridges, rice crispies; hot and cold beverages, and energy drink conce...
How the Company Makes Money
Hindustan Foods primarily makes money by manufacturing FMCG products for third-party brand owners under contract manufacturing arrangements. Revenue is earned from fees/charges embedded in the per-unit or per-batch manufacturing price agreed with ...
Hindustan Foods Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
31
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.46B | 42.51B | 35.64B | 27.55B | 20.35B | 14.04B |
| Gross Profit | 6.35B | 3.54B | 5.89B | 3.49B | 1.75B | 1.43B |
| EBITDA | 3.30B | 3.63B | 2.93B | 2.26B | 1.16B | 899.81M |
| Net Income | 1.26B | 1.49B | 1.10B | 930.17M | 446.63M | 372.56M |
Balance Sheet | ||||||
| Total Assets | 27.93B | 31.74B | 24.91B | 19.25B | 9.84B | 7.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.48B | 517.10M | 1.46B | 433.47M | 377.57M | 453.03M |
| Total Debt | 9.01B | 10.88B | 8.96B | 7.30B | 3.49B | 2.16B |
| Total Liabilities | 17.53B | 19.81B | 16.00B | 12.79B | 6.80B | 4.83B |
| Stockholders Equity | 10.40B | 11.65B | 8.91B | 6.46B | 3.04B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | -358.80M | -3.13B | -1.59B | -458.12M | -1.04B | -83.72M |
| Operating Cash Flow | 1.09B | 282.70M | 1.14B | 867.09M | 363.85M | 719.57M |
| Investing Cash Flow | -1.61B | -3.46B | -2.89B | -3.81B | -1.41B | -937.80M |
| Financing Cash Flow | 451.60M | 2.74B | 2.09B | 2.98B | 906.05M | 336.44M |
Hindustan Foods Ltd. Technical Analysis
Neutral
514.05
Price Trends
501.70
Positive
496.96
Positive
515.22
Negative
Market Momentum
5.62
Positive
49.13
Neutral
32.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HNDFDS, the sentiment is Neutral. The current price of 514.05 is below the 20-day moving average (MA) of 516.08, above the 50-day MA of 501.70, and below the 200-day MA of 515.22, indicating a neutral trend. The MACD of 5.62 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 32.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HNDFDS.
Hindustan Foods Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹74.88B | 11.52 | ― | 0.20% | 24.20% | 22.03% | |
65 Neutral | ₹1.29T | 51.56 | ― | 1.24% | 6.74% | 16.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | ₹54.54B | 46.45 | ― | 0.45% | 9.25% | -4.88% | |
59 Neutral | ₹205.43B | 101.24 | ― | 0.61% | 14.48% | 27.72% | |
57 Neutral | ₹30.31B | 28.26 | ― | 0.54% | 9.47% | -20.12% | |
53 Neutral | ₹61.23B | 41.28 | ― | ― | 16.38% | 28.10% |
* Consumer Defensive Sector Average
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Hindustan Foods Ltd. Corporate Events
Hindustan Foods Makes Scheme of Arrangement Effective, Consolidates Manufacturing Operations
Apr 1, 2026
Hindustan Foods Ltd. has announced that a court-approved Scheme of Arrangement involving Avalon Cosmetics Pvt. Ltd. and Vanity Case India Pvt. Ltd. has become effective as of the close of business on March 31, 2026, following its filing with the R...
Hindustan Foods shuts trading window ahead of FY26 results to tighten insider trading controls
Mar 26, 2026
Hindustan Foods Limited has announced that its trading window for dealing in the company’s securities will be closed for designated persons, their immediate relatives, and connected persons from April 1, 2026 until 48 hours after the declara...
Hindustan Foods Gets NCLT Nod for Group Restructuring Scheme
Feb 26, 2026
Hindustan Foods Ltd. has received a sanction from the National Company Law Tribunal’s Mumbai bench for a Scheme of Arrangement involving Avalon Cosmetics Private Limited and Vanity Case India Private Limited. The tribunal’s approval mo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.