Hindustan Foods Ltd. (HNDFDS) AI Stock Analysis

• Market Cap: ₹56.11B
• Dividend Yield: N/A
• Average Volume (3M): 10.66K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.08
• 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: ₹505.00 ▼(-1.76% 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

Strong revenue and margin expansion

Sustained revenue growth alongside expanding gross and net margins signals durable operational improvements and scalable cost structure. That trend supports long-term profitability as volumes rise, allowing fixed-cost absorption and continued reinvestment into capacity and efficiency.

Contract-manufacturing business model

A stable contract-manufacturing model creates recurring, fee-based revenue tied to client outsourcing decisions. Long-term manufacturing arrangements and end-to-end execution raise switching costs for clients and support steady utilization, making revenue streams more predictable over months to years.

Reasonable leverage and improving ROE

A balanced capital structure with moderate debt and rising ROE indicates efficient use of capital and capacity to fund operations without excessive financial strain. This positioning supports investment flexibility and resilience through business cycles over the medium term.

Negative Factors

Negative free cash flow due to high capex

Persistent negative free cash flow from elevated capex can erode liquidity and limit ability to self-fund growth, reduce flexibility to return capital, or require external financing. If capex remains high relative to operating cash flow, financial options and resilience are constrained.

Customer concentration and disclosure gaps

Reliance on third-party brand owners without disclosed client diversification raises concentrated-revenue risk. Loss or renegotiation of a large client could materially reduce volumes and margins; lack of transparency makes it harder to assess contract durability or counterparty dependence.

No dividend yield / limited shareholder cash returns

Absence of dividend distributions indicates capital is being retained for reinvestment or debt, which may be prudent but limits direct shareholder income. Over the medium term, this may deter income-focused investors and concentrates returns on future growth execution rather than present cash payouts.

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 primarily makes money by providing contract manufacturing services to FMCG brand owners. Revenue is generated when customers outsource production and packaging of finished goods to HFL under manufacturing/processing arrangements; HFL earns a conversion/processing margin for running the plants, maintaining quality and compliance, and delivering finished, packaged products per the customer’s specifications. Key revenue streams therefore come from (1) manufacturing and packing fees for producing customer-branded SKUs, (2) long-term/strategic manufacturing arrangements tied to specific categories or facilities (which support capacity utilization and recurring volumes), and (3) additional service components embedded in the contract-manufacturing model such as tooling/format changes, quality/testing, and other plant-level services, where applicable. Earnings are influenced by the scale and utilization of its manufacturing lines, operational efficiency (labor, utilities, yields, downtime), product mix, and the volume commitments and pricing terms negotiated with client brands. Specific customer names, contract terms, or category-wise revenue splits are null.

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	38.46B	35.64B	27.55B	20.35B	14.04B	7.68B
Gross Profit	6.35B	5.89B	3.49B	1.75B	1.43B	921.91M
EBITDA	3.30B	2.93B	2.26B	1.16B	899.81M	560.08M
Net Income	1.26B	1.10B	930.17M	446.63M	372.56M	219.11M
Balance Sheet
Total Assets	27.93B	24.91B	19.25B	9.84B	7.37B	5.39B
Cash, Cash Equivalents and Short-Term Investments	2.48B	1.46B	433.47M	377.57M	453.03M	311.42M
Total Debt	9.01B	8.96B	7.30B	3.49B	2.16B	1.65B
Total Liabilities	17.53B	16.00B	12.79B	6.80B	4.83B	3.52B
Stockholders Equity	10.40B	8.91B	6.46B	3.04B	2.54B	1.87B
Cash Flow
Free Cash Flow	-358.80M	-1.59B	-458.12M	-1.04B	-83.72M	-1.11B
Operating Cash Flow	1.09B	1.14B	867.09M	363.85M	719.57M	170.21M
Investing Cash Flow	-1.61B	-2.89B	-3.81B	-1.41B	-937.80M	-1.45B
Financing Cash Flow	451.60M	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 482.91, above the 50-day MA of 487.55, and below the 200-day MA of 524.24, indicating a bearish trend. The MACD of -5.27 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.32 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	₹58.27B	23.97	―	0.20%	6.42%	-39.00%
BRITANNIA	69 Neutral	₹1.41T	53.41	―	1.24%	7.21%	8.68%
HNDFDS	65 Neutral	₹56.11B	42.96	―	―	19.77%	28.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹28.71B	30.82	―	0.54%	9.83%	-0.92%
BECTORFOOD	61 Neutral	₹55.35B	46.45	―	0.45%	10.82%	-8.21%
HATSUN	61 Neutral	₹213.62B	89.83	―	0.61%	10.61%	7.97%

Hindustan Foods Ltd. Corporate Events

Hindustan Foods Gets NCLT Nod for Group Restructuring Scheme

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 moves forward a corporate restructuring under Sections 230 to 232 of the Companies Act, 2013, aimed at consolidating these group entities into Hindustan Foods as the resulting company.

The scheme will become effective once the certified NCLT order is filed with the Registrar of Companies by all the parties involved. This restructuring is expected to streamline the group’s corporate structure around Hindustan Foods, potentially enhancing operational efficiency and strengthening its position within the Vanity Case Group’s consumer products and contract manufacturing businesses.