Broker’s Call: Hindustan Foods (Buy)

Target: ₹665

CMP: ₹525.05

Hindustan Foods’ management maintained its upbeat medium-term outlook on the Q3FY26 earnings call. Reiterating its aspiration of topline growth at over 20 per cent, it also guided for FY26E/27E profits at ₹140-145 crore/ ₹200-220 crore respectively — indicating earnings’ growth of nearly 2x over FY25-27 — driven by a combination of legacy and new business segments. Hindustan Foods remains bullish on domestic demand pick-up in ice creams, packaged water/ beverages and foods (aided by GST cuts), and exports in footwear and OTC pharma on US tariff relaxations and US/UK trade deals.

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Revenue grew 14 per cent to ₹1,000 crore.

With new business segments getting over 70 per cent share of fresh capex planned in FY26, the transformation at Hindustan Foods – adding new marquee and mid-sized clients ; high-growth segments of footwear, ice cream and healthcare (collectively c.33 per cent of FY26E sales); and the shared-manufacturing model – is gaining momentum.

We expect the combined diversification of clients, segments and operating model to deliver potentially richer return ratios, going forward.

We adjust our FY26E/FY27E EPS estimates by -2 per cent/ +3 per cent respectively, and maintain our BUY rating with TP of ₹665, valuing the stock at P/E of 40x on FY27E EPS (unchanged). We expect Hindustan Foods’ current one-year forward P/E (33x) to re-rate based on robust project pipeline, improving RoE and healthy earnings’ growth trajectory.

Published on February 12, 2026