Check Before You Invest : Heritage Foods Ltd

Q: Which industry/sub-sector does Heritage Foods Ltd belong to?

Heritage Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q: Is Heritage Foods Ltd a good quality company?

Heritage Foods Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Heritage Foods Ltd undervalued or overvalued?

Heritage Foods Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.69, Historic Median: 25.88. Price to Book, Current: 2.85, Historic Median: 3.33. Price to Sales, Current: 0.69, Historic Median: 0.80. EV to EBITDA, Current: 12.23, Historic Median: 12.00

Q: Is Heritage Foods Ltd a good buy now?

Heritage Foods Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Heritage Foods Ltd?

Heritage Foods Ltd revenue growth is 9.3% for FY-2025, which is above its 5-year CAGR of 8.76%, indicating faster growth.

Q: Gross Profit margin of Heritage Foods Ltd?

Heritage Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.7% for FY-2025, which is above its 5-year median of 7.1%, indicating increasing margins.

Q: Operating Profit Margin of Heritage Foods Ltd?

Heritage Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.68% for FY-2025, which is above its 5-year median of 7.15% indicating increasing margins.

Q: Net Profit Margin of Heritage Foods Ltd?

Heritage Foods Ltd Net Profit Margin is 4.12% for FY-2025, is above its 5-year median of 3.84%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.7, Historic Median: 7.1. Operating Profit Margin (%), Current: 7.68, Historic Median: 7.15. Net Profit Margin (%), Current: 4.12, Historic Median: 3.84

Q: Return on Asset of Heritage Foods Ltd?

Heritage Foods Ltd Return on Asset is 12.1%, which is in line with its 5-year historical median of 11.61%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Heritage Foods Ltd?

Heritage Foods Ltd Return on capital employed is 25.32% for FY-2025, which is above its 5-year historical median of 21.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Heritage Foods Ltd

BSE: 519552 NSE: HERITGFOOD ISIN: INE978A01027

| Sector: FMCG | Industry: Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Heritage Foods Ltd belong to?

Heritage Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Heritage Foods Ltd a good quality company?

Heritage Foods Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Heritage Foods Ltd undervalued or overvalued?

Heritage Foods Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	21.69	25.88
Price to Book	2.85	3.33
Price to Sales	0.69	0.80
EV to EBITDA	12.23	12.00

Q.4 Is Heritage Foods Ltd a good buy now?

Heritage Foods Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Heritage Foods Ltd?

Heritage Foods Ltd revenue growth is 9.3% for FY-2025, which is above its 5-year CAGR of 8.76%, indicating faster growth.

Q.2 Gross Profit margin of Heritage Foods Ltd?

Heritage Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.7% for FY-2025, which is above its 5-year median of 7.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Heritage Foods Ltd?

Heritage Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.68% for FY-2025, which is above its 5-year median of 7.15% indicating increasing margins.

Q.4 Net Profit Margin of Heritage Foods Ltd?

Heritage Foods Ltd Net Profit Margin is 4.12% for FY-2025, is above its 5-year median of 3.84%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	7.7	7.1
Operating Profit Margin (%)	7.68	7.15
Net Profit Margin (%)	4.12	3.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Heritage Foods Ltd?

Heritage Foods Ltd Return on Asset is 12.1%, which is in line with its 5-year historical median of 11.61%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Heritage Foods Ltd?

Heritage Foods Ltd Return on capital employed is 25.32% for FY-2025, which is above its 5-year historical median of 21.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Heritage Foods Ltd?

Heritage Foods Ltd Return on equity is 19.27% for FY-2025, which is above its 5-year historical median of 16.27%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Heritage Foods Ltd?

Heritage Foods Ltd Cash conversion cycle is 14 days, below its 5-year historical median of 21 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	3.05	3.15
ROE (%)	19.27	16.27
ROCE (%)	25.32	21.37
Cash Conversion Cycle	14 days	21 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Heritage Foods Ltd?

Heritage Foods Ltd Debt-to-Equity ratio is 0.14, which is lower the industry average of 0.49, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Heritage Foods Ltd?

Heritage Foods Ltd Debt to cash flow from operations is 0.67, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Heritage Foods Ltd?

Q.1 Promoter shareholding and pledge status of Heritage Foods Ltd?

Promoters hold 41.30% of the Heritage Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Heritage Foods Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Heritage Foods Ltd vs industry peers?

Heritage Foods Ltd revenue CAGR is 8.76%, compared to the industry median CAGR of 7.03%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	9.3	7
Gross Profit Growth (%)	59.6	13.3
Operating Profit Growth (%)	57.3	12.6
Net Profit Growth (%)	84.6	20.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	3.05	1.2
ROE (%)	19.27	7.22
ROCE (%)	25.32	11.34
Cash Conversion Cycle (days)	13.66	48

Valuation & price assessment

Q.1 Stock return of Heritage Foods Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	9.5%	14.5%	19.1%	-19.1%

Q.2 Valuation ratios of Heritage Foods Ltd vs historical?

The current P/E ratio of 21.69 is lower than its historical median of 25.88, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.69	25.88	26.55
Price to Book	2.85	3.33	2.53
Price to Sales	0.69	0.80	1.43
EV to EBITDA	12.23	12.00	14.38

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Check Before You Invest : Heritage Foods Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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