Shares of Huhtamaki India Ltd. plunged over 8% on Wednesday to the lowest in over a week after its consolidated net profit declined 27% and missed analysts' expectations. The packaging company's profit fell to Rs 26 crore during the January–March period of financial year 2024, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 39.2 crore.
Huhtamaki Q4 Earnings Highlights (Consolidated, YoY)
Revenue down 7.8% at Rs 610 crore vs Rs 661.5 crore (Bloomberg estimate Rs 643.5 crore).
Ebitda down 20% at Rs 41.3 crore vs Rs 51.2 crore (Estimate: Rs 37.2 crore).
Margin narrows to 6.76% vs 7.73% (Estimate 9.7%).
Net profit down 27% to Rs 26 crore vs Rs 35.5 crore (Estimate: Rs 39.2 crore).
On the NSE, Huhtamaki's stock fell as much as 8.16% during the day to Rs 318 apiece, the lowest since April 15. It was trading 7.69% lower at Rs 319.70 per share, compared to a 0.46% advance in the benchmark Nifty 50 at 10:44 a.m.
The share price has risen 43.69% in the last 12 months and 11.5% on a year-to-date basis. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 46.13.
Three analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 19.1%.
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