Hindustan Foods advanced 2.34% to Rs 385 at 11:48 IST on BSE, with the stock extending Thursday's rally triggered by the company starting commercial production at a unit from 2 January 2018.
Meanwhile, the S&P BSE Sensex was up 111.55 points or 0.33% at 34,081.19. The S&P BSE Small-Cap index advanced 0.95%, outperforming the Sensex.
On the BSE, 6,008 shares were traded on the counter so far as against average daily volumes of 1,389 shares in the past one quarter. The stock had hit a high of Rs 413.80 so far during the day, which is a record high. The stock hit a low of Rs 384 so far during the day. The stock had hit a 52-week low of Rs 142 on 27 June 2017.
The stock had outperformed the market over the past one month till 4 January 2018, gaining 15.75% compared with the Sensex's 3.35% rise. The stock had also outperformed the market over the past one quarter, advancing 21.75% as against the Sensex's 7.26% rise. The scrip had also outperformed the market over the past one year, surging 122.54% as against the Sensex's 27.55% rise.
The small-cap company has equity capital of Rs 12.99 crore. Face value per share is Rs 10.
Shares of Hindustan Foods have rallied 12.57% in two trading sessions to its ruling price, from its closing of Rs 342 on 3 January 2018 after the company announced after market hours on 3 January 2018 that it had obtained all required licences of pest products manufacturing unit and started commercial production from 2 January 2018. The stock had surged by the maximum permissible level of 10% to settle at Rs 376.20 yesterday, 4 January 2018.
On 27 October 2017, the company had entered into a contract to acquire the pest products manufacturing unit at IGC II, SIDCO Samba. J & K from Reckitt Benckiser (India) (RBIPL) on a going concern basis and was in the process of obtaining all required licenses to start manufacturing.
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The manufacturing unit will supply the pest care products to RBIPL and the company hopes to achieve a turnover of Rs 125 crore annually from this unit. The company has entered into a 7 years committed supply agreement with RBIPL and the company hopes to have minimum revenue in the range of Rs 750 crore to Rs 850 crore during the entire agreement period.
Hindustan Foods' net profit surged 1062.5% to Rs 0.93 crore on 271.3% growth in net sales to Rs 23.76 crore in Q2 September 2017 over Q2 September 2016.
Hindustan Foods manufactures cereal-based food products and a range of instant mixes, baby foods, instant porridges, breakfast cereals and health drinks.
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