SME stock HOAC Foods India hits 52-week high as QIP opens; locked in 5% upper circuit
Shares of HOAC Foods India were locked in the 5 percent upper circuit at ₹244.45 on Tuesday, July 1, after the company officially opened its first Qualified Institutional Placement (QIP) issue on June 30, 2025. The stock’s strong movement pushed it to a new 52-week high and marked a multibagger 133 percent surge from its 52-week low of ₹105, hit in November 2024.
First-Ever QIP Sparks Investor Interest
Incorporated in March 2018 and headquartered in New Delhi, HOAC Foods is known for its natural and high-quality food products under the brand name “HARIOM”. The company’s offerings include chakki atta (wheat flour), organic herbs and spices, unpolished pulses, grains, and cold-pressed yellow mustard oil. The opening of the QIP marked a significant milestone in the company’s journey.
The QIP aims to raise up to ₹10 crore, with the floor price set at ₹210.64 per equity share. The closing market price on June 30 was ₹232.85, leaving room for a potential discount of up to 5 percent, as permitted by SEBI regulations. The company stated that the final issue price would be determined in consultation with the book-running lead manager, GYR Capital Advisors Pvt. Ltd.
The funds raised through the QIP are expected to be deployed to support HOAC’s expansion plans, especially working capital needs amid anticipated rapid growth in the coming years.
Operational and Financial Growth
HOAC Foods has demonstrated significant growth in recent years. Its revenue jumped from ₹12.10 crore in FY23 to ₹26.48 crore in FY25, while profit after tax (PAT) increased fivefold from ₹0.50 crore to ₹2.48 crore in the same period. The company reported a Return on Capital Employed (ROCE) of 25 percent and a Return on Equity (ROE) of 33.71 percent in FY25—an indication of operational efficiency and profitability.
HOAC’s integrated Direct-to-Consumer (D2C) and B2B retail model forms the backbone of its operations. It operates 15 retail stores (5 company-owned and 10 franchised) across the Delhi-NCR region and maintains a growing presence in B2B channels through kirana stores and modern retail.
The company runs two modern manufacturing facilities—Factory 1 in Village Bhondsi and Factory 2 in Village Mahinderwara—which enable efficient production and fast product delivery, keeping products fresh and supply chain costs in check.
Additionally, HOAC has been leveraging digital platforms effectively, with 14,500+ monthly users on its D2C mobile app and strong call-based order volumes. This digital reach enhances brand loyalty and helps the company maintain superior margins through direct customer engagement.
Looking ahead, HOAC is targeting expansion into metro cities, ramping up export potential through HOAC Exports Pvt. Ltd., and increasing its manufacturing capabilities. It also plans to diversify its product range by entering new categories like dry fruits, reinforcing its growth strategy.
Stock Price Performance
The SME stock has seen a notable uptrend in recent months, rising 30 percent in June and 27 percent in May, following a minor 3.3 percent decline in April. Earlier in 2025, the stock corrected by 6.3 percent in January and 12 percent in February, but bounced back with a 25.7 percent gain in March. Over the past 12 months, HOAC Foods shares have climbed 19 percent, showcasing resilience and investor confidence.
Disclaimer: The above information is based on market trends and input from brokerage firms and does not constitute investment advice. Investors are advised to consult with certified financial advisors before making any investment decisions.
