Low PE penny stock below Rs 2 hit upper circuit after signing MoU with Lotmor, Reports 63% revenue growth & Raises capital to Rs 100 crore!

NHC Foods Limited is making a strategic shift, partnering with Lotmor Brands Private Limited to manufacture beverages and similar products under Lotmor's Nature Day brand. This significant Memorandum of Understanding (MoU) signals NHC Foods' intent to diversify beyond its traditional exports and agri-commodities business. The company aims to leverage this collaboration to penetrate India's organized retail sector, targeting leading chains to meet the increasing consumer demand for quality packaged beverages and fast-moving consumer goods (FMCG).

Financially, NHC Foods has shown strong performance. For the financial year 2024-25, the company reported a substantial 63.1 per cent increase in revenue, reaching Rs 341.41 crore, up from Rs 209.24 crore in the previous year. Net profit saw an even more impressive jump of 184.7 per cent, climbing from Rs 2.35 crore to Rs 6.69 crore. This robust growth underscores NHC Foods' improved operational efficiency and positive business momentum.

Further solidifying its expansion plans, an Extraordinary General Meeting (EGM) held on July 18 approved an increase in the authorised share capital from Rs 65 crore to Rs 100 crore. Additionally, the EGM sanctioned the issuance of 6.5 crore convertible warrants on a preferential basis to Mr. Joshi, providing further capital for the company's growth initiatives.

About the Company

NHC Foods (NHC) has been a trusted name in the industry since 1960 and is a three-star merchant export house and a leading exporter of premium agricultural commodities and spices. Renowned globally for its expertise in the merchant export of Spices, Food Grains, Oil Seeds, Pulses, and Dry Fruits. NHC proudly serves over 30 countries with its signature brands such as Indi Bite, Eat'mor, and Saaz. With a strong focus on technology upgrades, process improvements, and market diversification, NHC is strategically expanding its footprint both in India and new international markets.

On Thursday, shares of NHC Foods Ltd hit a 5 per cent upper circuit to Rs 1.13 per share from its previous closing of Rs 1.07 per share. The stock’s 52-week high is Rs 3.71 per share and its 52-week low is Re 0.87 per share.

The shares of the company have a PE of 9.21x whereas the industry PE is 24x with an ROE of 12.2 per cent and an ROCE of 16.2 per cent. The stock is up by 28.7 per cent from its 52-week low of Re 0.87 per share and has given multibagger returns of over 550 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.