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Hindustan Foods Eyes 2x Profit Growth by FY27
12 Feb
Summary
- Hindustan Foods targets over 20% topline growth with new segments.
- FY26-27 profits projected at ₹140-220 crore, nearly doubling.
- Company focuses on ice creams, beverages, and healthcare segments.
Hindustan Foods anticipates substantial earnings growth, projecting profits to nearly double from FY25 to FY27. The company's management reaffirmed its target of over 20% topline growth, with specific earnings forecasts of ₹140-145 crore for FY26E and ₹200-220 crore for FY27E.
This growth trajectory is fueled by both established and emerging business segments. Hindustan Foods is capitalizing on expected domestic demand increases in ice creams, packaged water, beverages, and food products, supported by GST reductions. Additionally, export potential in footwear and over-the-counter pharmaceuticals is being leveraged due to US tariff adjustments and trade agreements.
The company's strategic transformation is gaining momentum, with over 70% of fresh capital expenditure for FY26 directed towards new business verticals. These high-growth areas, including footwear, ice cream, and healthcare, are expected to constitute approximately 33% of FY26E sales. The diversification across clients, segments, and its shared-manufacturing model is anticipated to enhance return ratios.
Analysts have adjusted FY26E/FY27E Earnings Per Share (EPS) estimates slightly, maintaining a BUY rating with a target price of ₹665. The stock's current one-year forward P/E of 33x is expected to re-rate, driven by a strong project pipeline, improving Return on Equity (RoE), and a healthy earnings growth trajectory.
