In a year marked by mixed consumption trends and macroeconomic volatility, Hindustan Foods Ltd (HFL) has delivered a standout performance — achieving its highest-ever revenue, EBITDA, and PAT in FY25. With a diversified manufacturing portfolio across ice cream, beverages, footwear, home & personal care, and an expanding presence in sustainability and recycling, the company is positioning itself as a future-ready, multi-vertical growth engine.
📊 Company Growth and Financials
📈 Revenue, EBITDA, and PAT Growth (YoY & QoQ)
| Metric | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹2,761.9 Cr | ₹3,578.9 Cr | 🔼 +30% |
| EBITDA | ₹228.9 Cr | ₹307.7 Cr | 🔼 +34% |
| PAT | ₹93.0 Cr | ₹109.6 Cr | 🔼 +18% |
| Gross Profit | ₹356.0 Cr | ₹603.4 Cr | 🔼 +69% |
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Q4FY25 Revenue was ₹936.3 Cr vs ₹734.4 Cr in Q4FY24 — 🔼 +27.5%
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Q4 PAT rose to ₹30.7 Cr from ₹22.9 Cr — 🔼 +34.1%
🔍 Comparison with Past 5 Years
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | Gross Block (₹ Cr) |
|---|---|---|---|---|
| FY20 | 773 | 57 | 22 | 309 |
| FY25 | 3,579 | 308 | 110 | 1,412 |
📌 CAGR over 5 years:
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Revenue: 36%+
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EBITDA: 40%+
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PAT: 38%+
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Gross Block: 36%+
✅ Key Takeaway:
Hindustan Foods has sustained strong multi-year growth in all core financial metrics — consistently compounding revenue, margin, and asset base.
🟢 Order Book and Business Expansion
📦 Current & New Business Verticals
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👟 Footwear: Turned operationally profitable in Q4FY25; FY25 revenue: ₹390 Cr
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🍦 Ice Cream: New greenfield plant in Nashik operational May 2025
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🥤 Beverages: Mysuru expansion completed; record turnover in Q4FY25
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🧴 Home & Personal Care, OTC Pharma showing resilient performance
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🌱 Strategic ESG Investment: Acquired minority stake in ♻️ The Kabadiwala (plastic scrap & recycling)
🏭 Capacity Expansions
| Project Location | Segment | Status / Plans |
|---|---|---|
| Mysuru | Beverages | Expansion completed |
| Lucknow | Ice Cream | Expanded for peak season |
| Nashik | Ice Cream | Greenfield plant live from May’25 |
| North India | Ice Cream | New plant to be ready by Q1FY27 |
| South India | Footwear | Phase 2 expansion to commence |
| Baddi (HP) | Contract Mfg | Highest ever production; new client on-boarded |
✅ Key Takeaway:
HFL is building a robust pan-India manufacturing footprint with clear visibility into capacity-led growth through FY27.
🟢 Future Projections
📊 Forecast Signals
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💡 Gross Block to Double: Target of ₹1,800 Cr by FY26 from current ₹1,412 Cr
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🚀 PAT Upside in FY26: Expect stronger profitability post breakeven of footwear & scaling new capacities
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🤝 Strategic Value Creation:
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ESG-led growth with The Kabadiwala
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ESOP rollouts to attract and retain top leadership
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New customer projects at Baddi from Q3FY26
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✅ Key Takeaway:
FY26 is expected to witness expansion-led margin growth and higher EPS, with scalable opportunities across multiple verticals.
🟢 Debt and Financial Health
| Metric | FY25 | FY24 |
|---|---|---|
| Equity | ₹891 Cr | ₹646 Cr |
| Net Debt / Equity Ratio | 0.79x | – |
| Total Borrowings | ₹855 Cr | ₹686 Cr |
| Cash & Equivalents | ₹77 Cr | ₹43 Cr |
| Operating Cash Flow | ₹113.7 Cr | ₹86.7 Cr |
💰 Warrants Issue & healthy EBITDA-to-cash conversion have strengthened liquidity.
✅ Key Takeaway:
Despite capex-heavy expansion, HFL’s debt is well-managed, and cash flow generation is healthy. The balance sheet supports further growth without overleverage.
🟢 Market Size and Opportunities
🌍 Total Addressable Market (TAM)
| Segment | Domestic TAM (₹ Cr) | Key Growth Driver |
|---|---|---|
| Contract Manufacturing | ₹100,000+ Cr | Brand outsourcing rising |
| Ice Cream & Beverages | ₹25,000+ Cr | Seasonal & FMCG demand surging |
| Footwear (D2C + OEM) | ₹15,000+ Cr | Urbanisation, fashion retail |
| Recycling/ESG (EPR) | ₹5,000+ Cr | Sustainability mandates |
⚠️ Sector-Specific Risks
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Raw material price volatility
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Slowdown in FMCG consumption
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Working capital strain in shoe segment
✅ Key Takeaway:
HFL operates in multiple high-growth sectors, with rising demand and regulatory tailwinds (EPR, brand outsourcing). Risk is mitigated via diversification.
🟢 Regulatory and Market Influences
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✅ No regulatory red flags like ASM, SEBI actions
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📉 Impact from broader market volatility (FII outflows, currency depreciation) could weigh on near-term price
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🔒 Promoter Holding: No new pledges or stake dilution reported
✅ Key Takeaway:
Regulatory environment is stable. Promoter stance and corporate governance remain consistent.
📉 Technical Analysis (as of August 2025)
🔍 Monthly Chart Overview
| Technical Metric | Value | Outlook |
|---|---|---|
| Support Zone | ₹435–₹460 | Strong buy zone |
| Resistance Zone | ₹550–₹580 | Breakout needed |
| Current Price | ₹495 (est.) | Consolidating |
| Trend | Sideways–Uptrend | Cup & handle forming |
🔮 Forecast
| Time Frame | Trend | Target Levels (Upside) |
|---|---|---|
| Short Term | ⚖️ Neutral | ₹520–₹530 |
| Medium Term | 📈 Bullish | ₹580–₹600 |
| Long Term | 🚀 Strong Bullish | ₹650+ by FY26 |
✅ Key Takeaway:
Stock is technically consolidating, but shows bullish setup for breakout once resistance is cleared.
💰 Valuation and Investment Outlook
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📉 Trailing PE: Fairly valued vs. peers given growth profile
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💡 EPS FY25: ₹9.51; likely FY26 EPS: ₹12–13
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🔍 Forward PEG: <1 — indicating undervaluation relative to growth
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🧩 Multibagger potential in next 2–3 years if execution sustains
✅ Key Takeaway:
Stock is fairly valued to slightly undervalued, with scope for price re-rating supported by fundamentals, expansion, and operational turnaround.
🤔 Frequently Asked Questions (FAQs)
Q1. Is Hindustan Foods a contract manufacturer or brand owner?
🔹 HFL is a B2B contract manufacturer with no consumer-facing brands. It partners with leading FMCG and retail names.
Q2. Why is the shoe business so critical?
🔹 It adds margin diversity and is now profitable. Once scaled, it may become a key EBITDA contributor.
Q3. Is there risk from its debt levels?
🔹 Not significantly. Net Debt/Equity is under 1, and cash flows are sufficient for repayments.
Q4. Will The Kabadiwala investment add real value?
🔹 Yes. ESG mandates and circular economy demand give this strategic moat in the long term.
Q5. Can the stock double in 1 year?
🔹 If FY26 projections are met and margins scale, price could approach ₹650–700, i.e., ~30–40% upside. A double would require exceptional performance.
Q6. Is HFL dependent on any single customer?
🔹 No. It works with multiple marquee brands across verticals, reducing dependency risk.
🧠 Expert Management Quotes
🗣️ Sameer R. Kothari, MD:
“Crossing ₹100 Cr in PAT is not just a financial milestone — it validates our capability to drive value even in muted demand cycles.”
🗣️ Mayank Samdani, CFO:
“Footwear turned profitable, and our new capacities are already yielding results. The stage is set for our next leap.”
🗣️ Ganesh Argekar, ED:
“We achieved highest-ever volumes across segments despite cost pressures. Supply chain resilience was key.”
✅ Conclusion: Why Hindustan Foods Deserves Investor Attention
Hindustan Foods Ltd has proven it’s not just scaling — it’s scaling smartly and sustainably. With a consistent 5-year CAGR of over 35% across revenue, profit, and EBITDA, the company is now entering a phase where new capacities, profitability turnarounds, and ESG bets may unlock disproportionate value.
