NHC Foods trades jubilantly on the BSE

NHC Foods is currently trading at Rs. 39.35, up by 1.65 points or 4.38% from its previous closing of Rs. 37.70 on the BSE.

The scrip opened at Rs. 41.00 and has touched a high and low of Rs. 41.00 and Rs. 38.00 respectively. So far 17957 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 56.10 on 15-Jan-2013 and a 52 week low of Rs. 26.00 on 25-Nov-2013.

Last one week high and low of the scrip stood at Rs. 41.00 and Rs. 28.85 respectively. The current market cap of the company is Rs. 22.86 crore.

The promoters holding in the company stood at 51.41% while Institutions and Non-Institutions held 0.02% and 48.57% respectively.

NHC Foods is set to benefit from the implementation of a ruling by the Ministry of Health, which under the FSSAI (Food Safety & Standards Authority of India) regulations has banned the sale of powdered spices and condiments under loose or unpackaged condition. Under this rule no retailer, wholesaler or manufacturer can sell spices in unbranded packaging to the end consumer. Moreover, the new rule also calls for the adherence of Packaging & Labeling Regulations, 2011. With the implementation of this rule, the end consumer will be assured the best quality unadulterated product and will be aware of the details of the product he is consuming as it will be under a packed condition.

Well aware of the implementation of this ban, NHC Foods has since the past two years been developing its in-house brand -SAAZ of packaged spices and has gained a first mover advantage in Tier-II and Tier-Ill cities in western India. Moreover, the availability of NHC's SAAZ in various pack forms will enable small consumers to buy branded spices instead of their previous habit of purchasing loose spices.

As the Indian spices market is largely unregulated with many unbranded & unpackaged spices being sold till date, NHC to get a first mover advantage especially in Tier-II & Tier-Ill cities as this government ruling gets implemented over time.

NHC Foods is Government Recognized Star Export House engaged in the Business of Exporting Whole & Ground Spices, Oil Seeds, Food Grains, & Animal Feeds. The company has its state-of-the-art manufacturing facilities at Pardi in Gujarat. The company currently exports to 60 countries and has more than 200 International customers.