In a country like India with huge population and increasing disposable income , scope of companies from food processing sector is very vast,especially those with good brands.But, unfortunately many such brands are owned by unlisted players or high priced MNC’s . Only very few companies developed niche market and established their own brands and growing handsomely. DFM Foods is one of such company which is a dominant regional market player in snacks foods sector. DFM is promoted by Delhi Flour Mills and had two divisions till last year – Wheat storage Business and Snack Foods Business. From last year onwards DFM discontinued the low margin wheat storage business and now concentrating only in snack foods division.Its brands CRAX,NATKHAT, WIZZ ..etc are popular in northern part of India.Last year company expanded its capacity at a cost of Rs.13 Crore and due to huge demand for its products now again planning to expand the capacity further. Company is also taking steps to make it a Pan India brand in few years from now.In last financial year DFM’s snack foods division shows a growth of 35% in turnover(Total turnover was less due to discontinuation of wheat storage business).Net profit also sharply improved from Rs.1.99 Cr to Rs.4.21 Cr backed by better margins from snack foods division. In the first qtr of this financial year(June qtr) company shows an increase of 50% in its sales from Rs.13 Cr to Rs.20 Cr .With increasing urbanization and changing life styles,demand for snacks foods are expected to rise sharply and on the other side the expected record production of wheat will reduce the pressure of raw material cost which will help the company to record better performance going forward. Earlier, company had an image of a wheat trader and enjoyed only low valuation due to the image of a trading company. But now it is a pure FMCG/food processing like play and it should be re-rated accordingly. There is good scope for appreciation from current level of Rs.48/- * I have earlier mentioned DFM in MMB in Nov.2009 
