Analysis: Hoac Foods India Ltd.

Growth thesis

Hoac Foods India is a diversified food processing company specializing in flour, grains, spices, oils, and value-added products, operating through B2B (52% revenue), company-owned/franchise stores (40%), and exports (8%). Growth will accelerate via 9-10 new stores in FY27 (5-6 month break-even timeline), a 50,000 sq ft Vidisha plant (45-50 tons/day atta capacity starting in 1.5 months), and 4,000 liters/day peanut oil production. Export revenue will expand with US/UK/Australia shipments under advance payment terms, while online sales aim to double to INR6 crores in FY27. EBITDA margins are targeted at 15-16% by FY27 through operational efficiency and capacity utilization. Execution hinges on managing B2B margin pressures from competitive pricing and scaling new stores without overextending working capital.

Why is Hoac Foods India Ltd. stock rising?

• Expecting to sustain EBITDA margins at 15-16% going forward
• Planning to open 9-10 new stores in the current year, with interstate expansion into Bhopal, Madhya Pradesh, and Nagpur region
• Vidisha mega plant (50,000 sq ft) to start production in 1.5 months, increasing Atta capacity from 20 tons to 45-50 tons per day per shift
• New factory capex of INR4.5-5 crores, funded through project funding and internal accruals
• Revenue potential of new plant at peak utilization above INR200 crores

Research report

companyname: HOAC Foods India Limited ticker: HOACFOODS sector: Packaged Food / FMCG HOAC Foods India Limited manufactures and sells packaged food staples under the brand name "Hariom Atta & Spices." The company was founded by Rambabu Thakur in 2009 and began as a single store selling MP Sharbati wheat flour. Over time, it expanded into spices, pulses, rice, grains, edible oils, and value-added products like pickles, papad, and ready-to-eat items. The company operates two modern manufacturing ...

Catalysts

capex, margin expansion, new product segment, geographic expansion

Growth guidance

FY27 EBITDA margins guided at 15-16% driven by capacity expansion and new product launches; store count to increase by 9-10 units in FY26 with interstate expansion