Hindustan Foods Ltd. (HNDFDS) AI Stock Analysis

• Market Cap: ₹57.58B
• Dividend Yield: N/A
• Average Volume (3M): 10.66K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.19
• Revenue Growth: 19.77%
• EPS Growth: 28.22%
• Country: IN
• Employees: 1,304
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 3.02
• Shares Outstanding: 119,481,766
• 10 Day Avg. Volume: 22,693
• 30 Day Avg. Volume: 10,661
• PEG Ratio: 3.70
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -39.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.15
• Revenue Forecast (FY): ₹42.87B

• Rating: 65 Neutral
• Price Target: ₹493.00 ▼(-4.09% Downside)
• Action: Reiterated Date: 10/08/25
• Date: Action: Reiterated 10/08/25

Hindustan Foods Ltd. has a strong financial performance with robust revenue and profit growth, which is the most significant factor in its overall score. However, technical indicators suggest potential bearish sentiment, and the high P/E ratio indicates overvaluation concerns. The absence of a dividend yield further impacts its valuation attractiveness.

Positive Factors

Sustained Revenue Growth

Nearly 20% revenue growth indicates durable demand for HFL's contract manufacturing services. Recurring volume contracts and higher utilization support steady top-line expansion, strengthening bargaining power with suppliers and enabling scale benefits over the next several quarters.

Improving Profitability and Margins

Rising gross and net margins reflect better cost control and operational efficiency across plants. Sustained margin expansion enhances conversion of revenue to earnings, supports reinvestment in capacity, and makes the contract-manufacturing model more resilient to input cost cycles.

Strong Operating Cash Generation

Positive operating cash flow shows core operations convert profits into cash reliably, funding working capital and enabling capex or debt servicing. Consistent OCF provides a durable foundation for growth even if investment needs remain elevated in coming quarters.

Negative Factors

Negative Free Cash Flow from High Capex

Sustained negative free cash flow driven by elevated capex can erode liquidity and require external financing. If large investments don't yield near-term returns, the company may face pressure on flexibility for dividends, debt repayment, or strategic investments over the medium term.

Cash-Flow Management Needs Attention

Management must improve conversion of operating cash into free cash or better phase capex. Persistent gaps between profit and free cash reduce financial optionality and increase reliance on external funding, raising execution risk for expansion plans.

Equity Ratio and Asset Financing

A balance sheet that could benefit from higher equity means the company may be under-optimized for funding large capex via less dilutive or lower-cost means. Improving equity financing would reduce leverage risk and support long-term investment without over-relying on debt.

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 concentrates comprising carbonated soft drinks, tea, coffee, malt-based foods, soups, glucose powder, and dry mix powder; and leather products and accessories that consists of men's, women's, and juniors' footwear, and uppers. The company also provides fabric care products, including liquid and powder detergent, and fabric conditioners; home care products, which include surface, glass, and toilet cleaner, as well as liquid dish wash; and pest control products, such as coils, aerosols, liquid vaporizers, mosquito mats, and activ cards. In addition, it offers hair care products that include hair oil, food, gel, cream, and shampoo; toiletries, which comprise talc, shaving cream, and hand wash; baby care products, including creams, shampoo, lotions, baby oil, and powder; and skin care products, such as body lotion, moisturizer, creams, petroleum jelly, shower gel, face wash and scrub, body scrub and wipes, and dusting powder products. The company also exports its products. Hindustan Foods Limited was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

Hindustan Foods Ltd. generates revenue primarily through its contract manufacturing services. The company partners with major consumer goods brands to produce a wide array of products across different categories. Key revenue streams include manufacturing fees charged for producing goods, which may be based on volume or specific contractual terms. Additionally, strategic partnerships with well-established brands help in maintaining a steady flow of manufacturing orders, contributing significantly to the company's earnings. Hindustan Foods also benefits from economies of scale and efficient production processes, which enhance profitability.

Hindustan Foods Ltd. Financial Statement Overview

Summary

Hindustan Foods Ltd. presents a robust financial profile with strong revenue and profit growth. The company effectively manages its operations, reflected in improving margins and a reasonable leverage level. Cash flow management, however, needs attention due to negative free cash flow driven by high capital expenditures.

Income Statement

The company has demonstrated strong revenue growth with a consistent increase in total revenue over the years. Gross profit margin is healthy, indicating effective cost management, while net profit margin has seen improvement, showcasing enhanced profitability. EBIT and EBITDA margins have also increased, reflecting operational efficiency.

Balance Sheet

The company maintains a solid equity position with a reasonable debt-to-equity ratio, indicating a balanced use of leverage. Return on equity has improved, highlighting better utilization of shareholder funds. However, the equity ratio shows room for enhancing asset financing through equity.

Cash Flow

Operating cash flow has been positive, indicating good cash generation from operations. However, free cash flow is negative due to high capital expenditures, which could be a concern if sustained. The operating cash flow to net income ratio is healthy, showing effective cash conversion from profits.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	36.91B	35.64B	27.55B	20.35B	14.04B	7.68B
Gross Profit	6.09B	5.89B	3.49B	1.75B	1.43B	921.91M
EBITDA	3.13B	2.93B	2.26B	1.16B	899.81M	560.08M
Net Income	1.14B	1.10B	930.17M	446.63M	372.56M	219.11M
Balance Sheet
Total Assets	0.00	24.91B	19.25B	9.84B	7.37B	5.39B
Cash, Cash Equivalents and Short-Term Investments	836.20M	1.46B	433.47M	377.57M	453.03M	311.42M
Total Debt	0.00	8.96B	7.30B	3.49B	2.16B	1.65B
Total Liabilities	-8.91B	16.00B	12.79B	6.80B	4.83B	3.52B
Stockholders Equity	8.91B	8.91B	6.46B	3.04B	2.54B	1.87B
Cash Flow
Free Cash Flow	0.00	-1.59B	-458.12M	-1.04B	-83.72M	-1.11B
Operating Cash Flow	0.00	1.14B	867.09M	363.85M	719.57M	170.21M
Investing Cash Flow	0.00	-2.89B	-3.81B	-1.41B	-937.80M	-1.45B
Financing Cash Flow	0.00	2.09B	2.98B	906.05M	336.44M	1.53B

Hindustan Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 514.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HNDFDS, the sentiment is Negative. The current price of 514.05 is above the 20-day moving average (MA) of 495.46, above the 50-day MA of 494.91, and below the 200-day MA of 527.29, indicating a bearish trend. The MACD of -2.27 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 37.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HNDFDS.

Hindustan Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAEL	71 Outperform	₹62.45B	23.97	―	0.20%	6.42%	-39.00%
BRITANNIA	69 Neutral	₹1.42T	53.41	―	1.24%	7.21%	8.68%
BECTORFOOD	66 Neutral	₹61.54B	46.45	―	0.45%	10.82%	-8.21%
HNDFDS	65 Neutral	₹57.58B	42.96	―	―	19.77%	28.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹28.94B	30.82	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹203.09B	89.83	―	0.61%	10.61%	7.97%