X

Heritage Foods Ltd. Stock Analysis

Small Cap
Evaluated by 1351 users | BSE: 519552 | NSE: HERITGFOOD |
Consumer Food
The Heritage Group, founded in 1992 by Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with three-business divisions viz., Dairy, Retail and Agri under its flagship company Heritage Foods (India) Limited (HFIL), one infrastructure subsidiary -...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Heritage Foods Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.47%9.51%24.83%19.13%11.96%19.03%55.75%38.61%17.73%23.31%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0961,3931,6021,7222,0732,3812,3512,3442,4822,681
Y-o-Y Gr. Rt.-27.1%15%7.5%20.4%14.8%-1.2%-0.3%5.9%8%
Adjusted EPS (Rs.) 0.272.2111.49.83612.1265.1271.8837.5442.77
Y-o-Y Gr. Rt.-718.5%415.8%-13.8%-39%102%437.3%10.4%-47.8%13.9%
Book Value per Share (Rs.) 18.0719.529.8937.8940.9151.04127.17166.99172.898.96
Adjusted Net Profit 1.310.252.945.627.856.3302334174198
Net Op. Cash Flow (Rs. Cr.) 51.760.297.374.851.612588.4138143124
Debt to Cash Flow from Ops 3.62.891.31.893.051.011.721.981.992.3
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Heritage Foods Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.5%5.3%4.5%8%
Adjusted EPS 75.6%48.1%-13.1%13.9%
Book Value per Share 20.819.3-8-42.7
Share Price 25.2% 2.4% -27.3% -16.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 1.4411.354528.4114.9625.9872.5248.6422.0131.32
Operating Profit Margin (%) 3.423.926.565.644.045.555.515.637.465.04
Net Profit Margin (%) 0.110.733.32.651.342.3612.8514.237.027.4
Debt to Equity 2.231.930.910.810.830.530.260.350.350.62
Working Capital Days 40333031323128262827
Cash Conversion Cycle 10108912139131414
Entity Percentage Holding
Promoters 39.90%
Institutions 19.09%
Non-Institutions 41.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Heritage Foods Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Heritage Foods Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Heritage Foods Ltd.'s performance infers:

Heritage Foods Ltd. earnings have grown by 48.1%, whereas share price has appreciated 2.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Heritage Foods Ltd. share prices over the last 10 years. Here is what we found out:

Heritage Foods Ltd. share price has appreciated 20% annually over the past ten years.

The Heritage Group, founded in 1992 by Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with three-business divisions viz., Dairy, Retail and Agri under its flagship company Heritage Foods (India) Limited (HFIL), one infrastructure subsidiary - Heritage Infra Developers Limited and other associate companies viz., Heritage Finlease Limited, Heritage International Limited and Heritage Agro Merine Private Limited. The annual turnover of Heritage Foods

The Heritage Group, founded in 1992 by Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with three-business divisions viz., Dairy, Retail and Agri under its flagship company Heritage Foods (India) Limited (HFIL), one infrastructure subsidiary - Heritage Infra Developers Limited and other associate companies viz., Heritage Finlease Limited, Heritage International Limited and Heritage Agro Merine Private Limited. The annual turnover of Heritage Foods crossed Rs 347 crore in 2006-07.

Presently, Heritage’s milk products have market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Maharastra and its retail stores across Bangalore,Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are backbone to retail operations.

In the year 1994, HFIL floated a public issue to raise resources, which was oversubscribed 54 times and its shares are listed under B1 Category on BSE and NSE. Heritage Foods has its headquarters in Hyderabad, Andhra Pradesh, India.

Heritage Foods (India) Limited  in May 2009 announced that its board of directors has approved for investment of Rs 50 crore in a Special Purpose Vehicle engaged in generation of Hydro Power.

In 2011 the company received the Certificate of Commencement of the Business of the subsidiary Company named M/s. Heritage Conpro Limited.

Products range of the company includes:

Full Cream milk, Toned Milk ,Double Toned Milk, Cow Milk, UHT Milk (Tetra pack),Cow Ghee, Buffalo Ghee ,Cooking Butter, Fresh Cream, Skim Milk Powder,Curd (Cup & Pouch), Flavoured Milk in Bottles & Tetra packs, Butter Milk, Lassi,Paneer, Doodhpeda, Ice Cream, Bread Cookies.

Divisions: the company presently works under three divisions viz; Dairy, Retail and Agriculture

Subsidiaries:

  • Heritage Finlease It was incorporated under the companies Act 1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996. The company was registered as Non Banking Financial Institution on 5th Day of December 1998 by Reserve Bank of India as a Deposit Taking Company under the category Hire Purchase Company. At Present the company is allowing Dairy Loans to Small Farmers under Tie up arrangement with Heritage Foods (India) Limited. The company has been earning profits from inception and functioning in conformity with the rules and directions of Reserve Bank of India.The company holds a Corporate Agency for General Insurance through United India Insurance Company Ltd since 2003. It secured sizeable business under this
  • Insurance Agency Services.
  • Heritage Infra Developers
  • Heritage International
  • Heritage Agro Merine

Awards and Recognition

  • In 2013 N Bhuvaneswari Vice Chairman and MD won Fortune List of 50 Most Powerful Business Woman
  • 1st prize in Energy Conservation for the Year 2012
  • Quality Certificate from Nestle
  • Appreciation Letter from Govt. of Tamilnadu
  • THE GREAT INDIAN ICE CREAM CONTEST 2009

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback