NHC Foods Reports 29% Net Profit Growth Amid Strong Sales Performance

NHC Foods, a microcap player in the fast-moving consumer goods (FMCG) sector, has recently reported impressive financial metrics, showcasing a robust performance in its latest quarterly results. The company achieved a remarkable 29.01% growth in net profit for the quarter ending September 2024, marking its third consecutive quarter of positive results.
Net sales for the first half of the fiscal year reached Rs 133.51 crore, reflecting a significant growth rate of 60.16%. The operating profit to net sales ratio also reached a peak of 4.91%, with PBDIT hitting Rs 3.25 crore, indicating strong operational efficiency.

Despite these positive indicators, NHC Foods faces challenges in long-term fundamental strength, evidenced by an average Return on Capital Employed (ROCE) of 6.00% and a high Debt to EBITDA ratio of 4.91 times. The company has demonstrated consistent returns over the past three years, outperforming the BSE 500 index annually, with a notable 123.62% return in the last year. However, its long-term growth remains modest, with net sales increasing at an annual rate of 14.76% over the past five years.