NHC Foods Limited, a leading exporter of agricultural commodities and spices, is emerging as a hot pick for investors seeking exceptional returns. The recent Rs. 47 crore rights issue, oversubscribed by a staggering 3x, has reinforced market confidence in the company’s promising growth trajectory. This response showcases the strong trust investors have in NHC Foods’ strategic direction and management.
The company’s 4:1 rights issue, priced at just Re. 1 per share, offered shareholders an unparalleled opportunity to boost their equity at a bargain. With proceeds channeled towards enhancing working capital and repaying secured loans, NHC Foods is poised to amplify profitability and operational efficiency, ensuring robust shareholder value.
Impressive Financial Performance
NHC Foods’ financial performance for H1 FY25 speaks volumes about its growth momentum. The company recorded a fantastic half-yearly net profit of Rs. 405.97 lakh in just six months of FY25, almost doubling the full-year net profit of Rs. 234.74 lakh achieved in FY24.
Net profit surged by 377% to Rs. 205.08 lakh in September 2024 compared to Rs. 42.95 lakh in September 2023.
Revenue climbed significantly, up 60.25% to Rs. 6639.18 lakh in September 2024 from Rs. 4142.39 lakh in the same period last year.
For the quarter ending June 2024, net profit jumped by 391% to Rs. 200.88 lahks from Rs. 40.9 lahks in June 2023, with revenue rising by an impressive 73% to Rs. 7424.88 lakh from Rs. 4269.91 lahks in June 2023.
Leading Brands and Global Reach
The 3 Star Export House, NHC Foods, with exports to over 30 countries, is renowned for its signature brands Indi Bite, Eat’mor, and Saaz. These brands have cemented the company’s reputation in both domestic and international markets. Market analysts predict a potential tenfold increase in the stock price within six months, making NHC Foods a compelling buy. This optimistic projection is underpinned by the company’s investments in technology, product innovation, and expansion into new international markets.
“We are committed to delivering sustainable growth and value to our shareholders,” said the company management said. “The overwhelming response to our rights issue is a testament to the trust our investors place in us. With enhanced working capital and reduced debt, we are ready to seize new growth opportunities and strengthen our market presence.”