Review

DFM FOODS LTD. 

Ticker : 519588
FV : Rs 2
52-Week H/L : Rs 429.90/150

We had previously recommended DFM Foods in volume 37, issue no. 04, dated November 16, 2020, when the scrip was trading at Rs 360 per share. DFM Foods is engaged in the manufacturing and marketing of snacks. It markets corn rings and wheat puffs under the brands 'Crax' & 'Natkhat', respectively. Looking at its quarterly results on a standalone basis for Q2FY21, the company reported net sales of Rs 141.27 crore, an increase of 3.98 per cent as against the net sales of Rs 135.86 crore for Q2FY20. For Q2FY21, the company gained an operating profit of Rs 19.71 crore, expanding by 9.74 per cent compared to the operating profit of Rs 17.96 crore gained in Q2FY20. DFM Foods gained a net profit of Rs 10.32 crore in Q2FY21, which is a contraction of 30.13 per cent compared to the net profit of Rs 14.77 crore gained in Q2FY20. The company has been successfully diversifying its products, including new flavour variants. DFM Foods reported positive total income and operating margins in the recent quarter, indicating a positive growth trend. Hence, we recommended to BOOK PROFIT as of December 7, 2020, at Rs 415 with a gain of 15.27 per cent.