Market experts are very bullish on the long term potential of a leading exporter of agricultural commodities, NHC Foods Limited (NHC).
“The BSE listed company has already applied for Rights Issue and we are very upbeat with the recent results delivered by the company” said a Head of a Mumbai based research advisory firm.
For the quarter ended June 30, 2024, the company’s Net Profit has increased by 391% to Rs. 200.88
lakhs. This has been a commendable performance from the company, considering its Net profit for the year ended 31st March FY2024 was Rs. 234.74 lakhs. For the quarter ended June 30, 2024, NHC Foods registered Revenue growth of 74% to Rs. 7366.12 lakhs and EBITDA growth of 94.48% to Rs. 336.40 lakhs.
Mirroring the sentiment, Mr. Apoorva Shah, Chairman & Managing Director of NHC Foods said, “The proceeds of the Rights Issue will be used to meet working capital requirements and repay some secured loans, thus leading to increased profitability”
The more than 64-year-old company, NHC Foods has emerged as a global leader in exporting agricultural commodities including Spices, Food grains, Oil Seeds, Pulses and Dry Fruits. “We export to 30+ countries across Middle East and Europe including USA, UK, China, Russia, Brazil, South Africa”, added Mr. Shah.
Recognising its contribution to Indian exports, the Ministry of Commerce and Industry, Government of India has awarded a THREE STAR Export House to NHC Foods. This recognition awarded after meticulous scrutiny by Government of India, brings many facilities in the ease of exports for the company.
Another Delhi based broker said, “I would suggest a price of Rs. 12 in the near future from the CMP of Rs. 6/- per piece. I attended the AGM and the company’s diversificaiton plans in ready-to-cook spices and seasoning mixes will bring a fundament shift in the company’s growth trajectory. Other listed players in the organic and health-focused products who cater to health-conscious consumers are commanding a 40x PE in the market.”
At the recently concluded AGM of NHC Foods, Mr. Apoorva Shah informed shareholders that company has chalked out plans for expansion, diversification and is also investing in digital technology for long term sustainable growth. On the future plans, Mr Shah explained that “Our export sales turnover in FY 23-24 increased by 26% compared to FY 22-23. Therefore, we plan to have geographical diversification expanding into new international markets to enhance global presence, which will also help reduce market risks. We are also planning to strengthen our foothold in the Indian market through targeted strategies and product innovations.”
