In this article, we will discuss the NHC Foods share price target for 2024 to 2035, Quarter 2 result, financial, stock performance, future plans, and challenges depending on the various reports from research and brokerage firms and market research analysts.
NHC Foods Limited is an organization established in 1960 trading in the manufacture and export of agricultural commodities comprising whole and grounded spices, oil seeds, grains, and pulses. The company is both ISO and HACCP certified and supplies a variety of food products and services to business giants like food MNCs and fast food chains across the world.
NHC Foods cites principles of quality and reliability in a statement with the company products exported to over one hundred countries, including the USA, Europe, and the Middle East235.
Quarter 2 FY 2025 Results:
- Net Profit: The net profit of NHC Foods during Q2 FY25 was Rs 2.09 crore, which was Rs 0.43 crore in Q2 FY24.
- Net sales increased from Rs 41.32 crore to Rs 66.17 crore, up by 60.15% YoY.
- The expenses again rose substantially from Rs 39.74 crore to ₹62.92 crore with a YoY enhancement of 58.34%.
- The profit before tax (PBT) was also up from Rs 0.53 crore to Rs 2.12 crore, a 300.00% annual growth.
- Earnings Per Share (EPS) was also up from Rs 0.01 to Rs 0.04, which is a 300.00% YoY increase.
| Q2 FY 2025 | Q2 FY 2024 | Year-on-Year Change | |
| Net Sales | 66.17 crore | 41.32 crore | +60.15% |
| Expenses | 62.92 crore | 39.74 crore | +58.34% |
| Profit Before Tax | 2.12 crore | 0.53 crore | +300.00% |
| Earnings Per Share (EPS) | 0.04 | 0.01 | +300.00% |
Financial
NHC Foods has achieved good sales growth during FY 2024 with Rs 211.30 crore total income, which is 28.75% up from last year’s data, and Rs 2.35 crore PAT, which has increased up to 33.65% of the previous year. Thus, the company has shown better efficiency of operation in the current financial year through higher basic earnings per share of Rs 1.98.
Consequently, the net sales for Q2 FY 2024 were at Rs 79.54 cr, up from the same quarter of the previous year by 38.96%. Yet, total expenses were also on an incline at Rs 208.18 crore, implying a negative operating cash flow of Rs -2.22 crore, a factor that has emerged that indicates that although the organization has been experiencing growth in its revenues, it still faces problems in its cash flow management.
In sum, the future of NHC Foods seems optimistic; however, the firm needs to pay attention to its liquidity problems and bring operational improvement to sustain the firm’s future growth.
Market Cap – 158 crore
P/E ratio – 29.56
Industry P/E – 56.65
Debt to Equity – 1.27
Return on Equity – 16.57%
Dividend Yield – 0.00%
NHC Foods’s 52-week high was Rs 2.79, and the 52-week low was Rs 0.98 per equity share.
Shareholding Pattern
NHC Foods has a shareholding pattern as of 30 Sep, 2024:
Promoter holding is 40.82%.
Retail participation is 59.18 percent.
The total number of shareholders has increased to 21,776 from 9,893.
Stock Performance
NHC Foods has given good returns to its investors, given below:
-58.73 percent return in the last 1 week
-55.78 percent returns in the last 1 month
-58.48 percent returns in the last 3 months
-40.38 percent returns in the last 6 months
-40.00 percent returns in the last 1 year
+33.49 percent returns in the last 2 year
+91.10 percent returns in the last 3 year
+564.29 percent returns in the last 5 year
NHC Foods Share Price Target 2024
The share price target of NHC Foods is expected to witness a bullish trend in the year 2024, with the avg share price of Rs 2.50 in FY 2024. The growth percentage for NHC Foods shares is predicted to be positive, with an upward trend towards the end of the year due to strong quarterly results.
| 2024 | Share Price |
|---|---|
| Initial Target | 1.85 |
| Mid-year Target | 2.50 |
| End-year Target | 3.10 |
NHC Foods Share Price Target 2025
The share price target of NHC Foods is expected to witness a bullish trend in the year 2025, with the maximum share price at Rs 6.80 in FY 2025. The growth percentage for NHC Foods shares is predicted to be positive, with an upward trend towards the end of the year.
| 2025 | Share Price |
|---|---|
| Initial Target | 2.90 |
| Mid-year Target | 5.15 |
| End-year Target | 6.80 |
NHC Foods Share Price Target 2030
The share price target of NHC Foods is expected to witness a bullish trend in the year 2030, with the maximum share price at Rs 15.50 in FY 2030. The growth percentage for NHC Foods shares is predicted to be positive, with an upward trend towards the end of the year.
| 2030 | Share Price |
|---|---|
| Initial Target | 11.35 |
| Mid-year Target | 15.50 |
| End-year Target | 14.65 |
NHC Foods Share Price Target 2035
The share price target of NHC Foods is expected to witness a bullish trend in the year 2035, with the maximum share price at Rs 26.50 in FY 2035. The growth percentage for NHC Foods shares is predicted to be positive, with an upward trend towards the end of the year.
| 2035 | Share Price |
|---|---|
| Initial Target | 22.40 |
| Mid-year Target | 26.50 |
| End-year Target | 25.35 |
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Future Plans:
Geographical Expansion: To achieve its long-term goals, this food giant, NHC Foods, needs to expand its business operations, make a deeper market penetration into the domestic market of India, and look for opportunities in other foreign countries to widen the company’s customer base.
Product Diversification: New products for release include ready-to-cook spices, seasonings ingredient combinations, and health-focused products: organic products for the health-conscious market.
Digital Strategy Investment: NHC Foods is targeting to introduce designs to develop its online market to get higher coverage and meet the increasing demand for the online purchase of food items.
Rights Issue: The company has recently launched a rights issue to be used for working capital needs and meeting debts to improve its functioning and diversify its operations.
Challenges:
Market Competition: The agricultural commodity sector is considered highly saturated, due to which constant innovation and quality upgrades of products to defend and retain the proportion of the market are needed every hour.
Financial Ratios: As illustrated by Figure 3 below, the low-interest cover ratios reveal NHC Foods’ weakness in dealing with its debt and, therefore, keep profitability at bay.
Dependence on Other Income: A substantially more significant percentage of the company’s electronic products revenue is from other sources than from operations, which itself may prove volatile if the different sources are unstable.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.