Hindustan Foods

Point A )KNS Shoetech Private Limited Wholly owned subsidiary (w. e. f October 01, 2023):
Has entered into a Business Transfer Agreement (BTA) with SSIPL Retail Limited (“SSIPL”). This agreement entails the acquisition of manufacturing undertakings previously owned by SSIPL, located at Bangran and Bhagani in Himachal Pradesh as well as Kundli in Haryana. The total outlay for the transaction was more than Rs. 100 crores with the BTA amount of nearly Rs 77 crores. The facilities are catering to key customers like Puma, Reebok, Asics, Sketchers, etc. This acquisition marks a noteworthy expansion for KNS Shoetech Private Limited and Hindustan Foods Limited within the sports shoe manufacturing domain. This strategic move underscores the company’s commitment to enhancing their manufacturing capabilities and strengthening their presence in this sector.

Point B): The company will set the goal of Revenue of Rs 4000 Cr in FY26, the estimated revenue of FY 24 ~ 2600 Cr± with PAT margin ~2.70%. The important part of the last’s commentary, they have an ambitious target of the PAT margin ~ 3.5%. So interestingly to watch two events revenue and margin improvement on quarter on quarter. The company has a good liquidity position on cash.

So wait and watch the Q4 numbers and management commentary on business.