Penny stock below Rs 20: Company received fresh export orders; Expanding U.S. market footprint with new frozen food products
The company has a market cap of Rs 123 crore with a PE of 40x whereas the industry PE is 22x.
On Thursday, shares of Himalaya Food International Ltd plunged 0.34 per cent to Rs 14.52 per share from its previous closing of Rs 14.57 per share. The stock’s 52-week high is Rs 23.62 per share and its 52-week low is Rs 9.29 per share.
Himalaya Food International Ltd. has secured new export orders for two containers of Crinkle Cut French Fries from a major North American food service distributor. This distributor, boasting 74 regional outlets and nationwide reach, recently added Himalaya's Crinkle Cut Fries to its frozen product portfolio. Following a strong initial response to last month's first shipment, repeat orders are now being generated. Furthermore, other products like Hash Brown Coins and Baked Potatoes are currently undergoing advanced market testing with the same distributor. The product rollout has commenced across the Eastern Seaboard of the U.S., from Boston to Florida, with plans for expansion into other key U.S. markets in the coming months, marking a significant expansion of the company's presence in the U.S. frozen food service segment and aligning with its international growth strategy.
Additionally, Himalaya Food International Ltd announced that its promoters have reaffirmed their commitment by subscribing to approximately 16,62,21,900 shares in the ongoing Rights Issue, priced at Rs 13.80 per equity share in a 1:2 ratio. This subscription, totalling Rs 316.62 crore, includes the conversion of Rs 15 Crore previously infused by promoters as unsecured loans for the company's One-Time Settlement (OTS) dues to banks. This significant participation underscores the promoters' confidence in the company's fundamentals and future growth, and the capital raised will accelerate Himalaya Food's efforts to become debt-free and expand its value-added food processing business.
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About the Company
Himalaya Food International Ltd, founded in 1992 and operating from two ISO 22000-certified facilities in India, is a frozen and canned food processor specialising in mushrooms and IQF ready-to-eat products. Under the "Himalaya Fresh" brand, they cultivate mushrooms and manufacture a variety of natural, vegetarian items, including cheese, sweets, and appetisers, which are exported to the USA and sold domestically, utilising quick chilling and freezing to preserve quality.
The company has a market cap of Rs 123 crore with a PE of 40x whereas the industry PE is 22x. The stock is up by 56.3 per cent from its 52-week low of Rs 9.29 per share.
Disclaimer: The article is for informational purposes only and not investment advice.