Hindustan Foods stock gains after block deal

26 Jun 2024 , 06:17 PM

Hindustan Foods (HFL) shares rose 15% to ₹582.50 on the BSE today, following a potential 11.1% equity interest sale via a block auction on Wednesday. The agreement is reported to be valued roughly ₹720 Crore.

Westbridge and Sixth Sense are two of the few private equity investors who are expected to be sellers in the transaction. However, the formal information about the buyers and sellers is now unknown.

Hindustan Foods is an Indian firm that contract manufactures various FMCG products such as food, home care, personal care, and beverages. They also started manufacturing leather shoes and accessories.

HFL was formed as a result of the Dempo Group’s entry into the FMCG market via a joint venture with Glaxo India.

Hindustan Foods reported a 13% year-on-year (YoY) increase in profit after tax (PAT) to ₹22.9 Crore for the quarter ended March 2024, while revenues increased by 11% to ₹734.4 Crore.

For the full fiscal year 2024, the company’s PAT climbed by 31% YoY to ₹93 Crore.

The company has also started trial manufacturing of sports shoes at two additional locations in the south, with plans to build them up in Q2FY25.

The company’s shares have risen 4% in the last year, but have fallen 0.50% this year. According to BSE statistics, the stock has climbed by 12% during the previous week.

At around 2.04 PM, Hindustan Foods was trading 8.18% higher at ₹548.25, against the previous close of ₹506.80 on NSE. The counter touched an intraday high and low of ₹582, and ₹531.95, respectively.

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