Hindustan Foods was locked at 10% upper circuit at Rs 376.20 at 14:30 IST on BSE after the company said that it has obtained all required licences of pest products manufacturing unit and started commercial production from 2 January 2018.
The announcement was made after market hours yesterday, 3 January 2018.Meanwhile, the S&P BSE Sensex was up 138.35 points, or 0.41% to 33,931.73. The S&P BSE Sensex was up 149.78 points, or 0.77% to 19,495.24, outperforming the Sensex.
High volumes were witnessed on the counter. On the BSE, 11,148 shares were traded in the counter so far, compared with average daily volumes of 1,219 shares in the past one quarter. The stock was locked at a high of Rs 376.20 in intraday trade, which is also a record high for the stock. The stock had hit a low of Rs 348 so far during the day. The stock had hit a 52-week low of Rs 142 on 27 June 2017.
The small-cap company has equity capital of Rs 12.99 crore. Face value per share is Rs 10.
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.
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 a 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% jump 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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
