Penny Stock Soars After ₹8.68 Crore US Foods Order Sparks Investor Buzz

Penny Stock Soars After ₹8.68 Crore US Foods Order Sparks Investor Buzz

Himalaya Food International’s stock surged to its upper limit after clinching a significant export contract to the U.S., reflecting rising growth potential and operational acceleration.

Strong Surge for Penny Stock Amid Major US Contract Win

Himalaya Food International Ltd, a lesser-known player in the Indian stock market, made headlines this week as its stock locked in a 5% upper circuit on Monday, closing at ₹15.55 per share. This rise came on the heels of a significant export order worth over ₹8.68 crore from US Foods, a leading food manufacturing and distribution company based in the United States.

The stock has gained considerable ground from its 52-week low of ₹9.29, marking a robust 67.4% increase. While still trading well below its 52-week high of ₹24.80, this upward movement has reignited investor interest in the counter.

Landmark Export Order From US-Based Giant

Himalaya Food International has recently secured a major shipment deal for Brown Patties, set to be exported to the U.S. in large volumes. The order comprises 18 shipping containers, each carrying 2,500 cases of Brown Patties, amounting to an overall volume of approximately 742,500 lbs, or nearly 337 metric tonnes.

Valued at USD 1.017 million (approximately ₹8.68 crore based on the June 2, 2025, exchange rate), this deal is seen as a strategic milestone for the company. It not only strengthens its global footprint but also aligns with its long-term goal of tapping international markets more aggressively.

Efficient Supply Chain Management Through US Associate

To guarantee seamless logistics and adherence to global regulations, The agreement is being coordinated through Himalaya Food’s U.S.-based partner entity, Himalaya International Inc., which functions under the trade name Global Food. This entity oversees logistics, regulatory formalities, and customs processes across all 48 contiguous U.S. states.

What’s notable is that the US-based associate is not earning any commercial profit from facilitating the deal, highlighting a model focused more on operational execution and relationship building than immediate financial gains.

Delivery Schedule Designed for Market Consistency

Rather than dispatching the order in bulk, the company has opted for a staggered delivery model. Shipments are planned for bi-weekly dispatches of 2,500 cases, ensuring uninterrupted availability across US markets. This structured supply approach is intended to maintain consistent distribution while enabling Himalaya Food to balance production capacity at its Indian facilities.

The order is also being viewed as the beginning of a long-term business relationship with a major global food distributor—something that could open doors to more contracts and volume growth in the future.

Company Background: A Legacy in Processed Foods

Since its inception in 1992, Himalaya Food International Ltd has been operating through two ISO 22000-accredited manufacturing units in India, gaining industry recognition for its expertise in crafting high-quality frozen and preserved food products. The firm focuses on mushroom cultivation and produces a range of Individually Quick Frozen (IQF) vegetarian products, such as dairy-infused snacks, traditional Indian desserts, and convenient ready-to-serve meals.

Sold under the “Himalaya Fresh” label, their products serve both domestic and international markets—primarily the United States. By using advanced freezing technology, the company ensures product freshness while minimizing the use of preservatives.

Rights Issue to Fuel Expansion Plans

In a move aimed at strengthening its financial base, Himalaya Food International has also launched a rights issue involving 2,89,36,442 equity shares priced at ₹13.80 each (including a premium of ₹3.80). This fundraising effort is expected to raise approximately ₹39.93 crore.

The offering follows a 1-for-2 share ratio, with May 23, 2025, designated as the official record date. It opened for subscription on June 3 and will close on June 18. Once complete, the company’s total number of shares will rise from 5,78,72,884 to 8,68,09,326. The Rights Entitlement has been uniquely catalogued under the ISIN code INE552B01010, serving as its distinct global identifier in securities tracking systems.

Financial Snapshot and Market Valuation

Currently, the company has a market capitalization of ₹134 crore and trades at a price-to-earnings (PE) ratio of 43x—significantly above the industry average of 23x. While this suggests that the stock may be priced at a premium, the recent developments and potential revenue inflows from the US order could justify its valuation.

Moreover, the stock’s impressive rebound from its 52-week low signals growing market confidence and reflects investor optimism about its future growth trajectory.

Final Thoughts

Himalaya Food International Ltd is clearly positioning itself for the next phase of growth, both operationally and financially. The high-value export deal with US Foods not only boosts the company’s revenue prospects but also underscores its potential as a key Indian exporter of plant-based and frozen food products.

Backed by a disciplined supply strategy and supported by its international associate, the company is moving closer to becoming a global player. The rights issue further demonstrates its intent to scale operations and enhance shareholder value.

As Himalaya Food strengthens its presence in overseas markets and maximizes production efficiency, investors and stakeholders will likely keep a close eye on how these strategic moves unfold in the coming quarters.

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