Heritage Foods
Market Cap
₹9.0b
Last Updated
2020/03/31 13:01 UTC
Data Sources
Company Financials +
Executive Summary
Heritage Foods Limited procures and processes milk and milk products in India.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with adequate balance sheet.
Similar Companies
Share Price & News
How has Heritage Foods's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HERITGFOOD's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
34.7%
HERITGFOOD
14.8%
IN Food
8.9%
IN Market
1 Year Return
-61.3%
HERITGFOOD
-3.8%
IN Food
-30.6%
IN Market
Return vs Industry: HERITGFOOD underperformed the Indian Food industry which returned -3.8% over the past year.
Return vs Market: HERITGFOOD underperformed the Indian Market which returned -30.6% over the past year.
Shareholder returns
| HERITGFOOD | Industry | Market | |
|---|---|---|---|
| 7 Day | 34.7% | 14.8% | 8.9% |
| 30 Day | -40.8% | -13.9% | -24.8% |
| 90 Day | -41.2% | -12.3% | -29.4% |
| 1 Year | -61.1%-61.3% | -2.4%-3.8% | -29.2%-30.6% |
| 3 Year | -60.7%-61.2% | 43.8%39.4% | -17.0%-21.5% |
| 5 Year | 32.5%29.1% | 84.2%75.2% | -5.4%-10.4% |
Price Volatility Vs. Market
How volatile is Heritage Foods's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
How Does Heritage Foods's (NSE:HERITGFOOD) P/E Compare To Its Industry, After The Share Price Drop?1 month ago | Simply Wall St
Why Heritage Foods Limited’s (NSE:HERITGFOOD) Return On Capital Employed Might Be A Concern1 month ago | Simply Wall St
Is Heritage Foods Limited (NSE:HERITGFOOD) Overpaying Its CEO?Valuation
Is Heritage Foods undervalued compared to its fair value and its price relative to the market?
16.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HERITGFOOD (₹212.5) is trading below our estimate of fair value (₹255.43)
Significantly Below Fair Value: HERITGFOOD is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HERITGFOOD is poor value based on its PE Ratio (14x) compared to the Food industry average (10.3x).
PE vs Market: HERITGFOOD is poor value based on its PE Ratio (14x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: HERITGFOOD is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: HERITGFOOD is overvalued based on its PB Ratio (1.2x) compared to the IN Food industry average (0.7x).
Next Steps
Future Growth
How is Heritage Foods forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
26.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HERITGFOOD's forecast earnings growth (26.8% per year) is above the savings rate (6.5%).
Earnings vs Market: HERITGFOOD's earnings (26.8% per year) are forecast to grow faster than the Indian market (19.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HERITGFOOD's revenue (11.3% per year) is forecast to grow faster than the Indian market (8.9% per year).
High Growth Revenue: HERITGFOOD's revenue (11.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HERITGFOOD's Return on Equity is forecast to be low in 3 years time (11.4%).
Next Steps
Past Performance
How has Heritage Foods performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HERITGFOOD has a large one-off loss of ₹2.3B impacting its December 31 2019 financial results.
Growing Profit Margin: HERITGFOOD's current net profit margins (2.6%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: HERITGFOOD's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: HERITGFOOD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HERITGFOOD had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Food industry average (20.6%).
Return on Equity
High ROE: HERITGFOOD's Return on Equity (7.7%) is considered low.
Next Steps
Financial Health
How is Heritage Foods's financial position?
Financial Position Analysis
Short Term Liabilities: HERITGFOOD's short term assets (₹2.1B) do not cover its short term liabilities (₹2.5B).
Long Term Liabilities: HERITGFOOD's short term assets (₹2.1B) do not cover its long term liabilities (₹3.9B).
Debt to Equity History and Analysis
Debt Level: HERITGFOOD's debt to equity ratio (24.5%) is considered satisfactory.
Reducing Debt: HERITGFOOD's debt to equity ratio has reduced from 61.4% to 24.5% over the past 5 years.
Debt Coverage: HERITGFOOD's debt is well covered by operating cash flow (54.3%).
Interest Coverage: HERITGFOOD's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: HERITGFOOD has a high level of physical assets or inventory.
Debt Coverage by Assets: HERITGFOOD's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is Heritage Foods's current dividend yield, its reliability and sustainability?
0.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HERITGFOOD's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).
High Dividend: HERITGFOOD's dividend (0.94%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).
Stability and Growth of Payments
Stable Dividend: HERITGFOOD's dividend payments have been volatile in the past 10 years.
Growing Dividend: HERITGFOOD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.2%), HERITGFOOD's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HERITGFOOD's dividends in 3 years are forecast to be well covered by earnings (20% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.9yrs
Average management tenure
CEO
Nara Bhuvaneswari (57yo)
14.67s
Tenure
₹69,364,000
Compensation
Mrs. Nara Bhuvaneswari , BA is a Promoter of Heritage Foods Ltd., and has been its Managing Director and Vice Chairman since July 15, 2005. Mrs. Bhuvaneswari has 10 years Industry experience. Mrs. Bhuvane ...
CEO Compensation Analysis
Compensation vs Market: Nara's total compensation ($USD920.52K) is above average for companies of similar size in the Indian market ($USD48.16K).
Compensation vs Earnings: Nara's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairperson & MD | 14.67yrs | ₹69.36m | 22.98% ₹2.1b | |
| President | 2yrs | ₹26.78m | 0.48% ₹43.2m | |
| Chief Financial Officer | no data | ₹5.67m | no data | |
| Compliance Officer & Company Secretary | 12.17yrs | ₹2.82m | no data | |
| Head of Dairy Division | 5.58yrs | no data | 0.0013% ₹115.8k | |
| Executive Director | 6.67yrs | ₹55.49m | 0.44% ₹39.1m | |
| Head of HR & GM | no data | no data | 0.000090% ₹8.1k | |
| IT Head & GM | no data | no data | no data |
8.9yrs
Average Tenure
57yo
Average Age
Experienced Management: HERITGFOOD's management team is seasoned and experienced (8.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairperson & MD | 14.67yrs | ₹69.36m | 22.98% ₹2.1b | |
| Executive Director | 6.67yrs | ₹55.49m | 0.44% ₹39.1m | |
| Non-Executive Independent Chairperson | no data | ₹390.00k | no data | |
| Non-Executive Director | 27.67yrs | ₹220.00k | 0.22% ₹19.4m | |
| Non-Executive Independent Director | 6.42yrs | ₹390.00k | no data | |
| Non-Executive Independent Director | 4yrs | ₹240.00k | no data | |
| Non-Executive Independent Woman Director | 0.83yr | ₹20.00k | no data |
6.5yrs
Average Tenure
51yo
Average Age
Experienced Board: HERITGFOOD's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Heritage Foods Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Heritage Foods Limited
- Ticker: HERITGFOOD
- Exchange: NSEI
- Founded: 1992
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: ₹8.980b
- Shares outstanding: 46.40m
- Website: https://www.heritagefoods.in
Location
- Heritage Foods Limited
- #6-3-541/C Panjagutta
- Hyderabad
- 500082
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 519552 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Nov 1996 |
| HERITGFOOD | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Nov 1996 |
Biography
Heritage Foods Limited procures and processes milk and milk products in India. The company’s Dairy division produces and markets dairy products, including fresh milk, curd, butter milk, lassi, ice cream, paneer, table butter, cooking butter, milk powder, flavored milk, UHT milk, Indian sweets, and dairy whitener; and beverages. This division also operates and franchises 1,365 Heritage Parlour outlets that sell Heritage milk, milk products, and ice creams/frozen desserts. In addition, it exports dairy products to Europe, the Gulf countries, and various countries in Asia. The company’s Renewable Energy division operates a solar power plant with a capacity of 4.09 MW; and wind power plant with a capacity of 6.30 MW in the states of Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, and Karnataka. It also engages in manufacturing and selling cattle feeds. The company was formerly known as Heritage Foods (India) Limited and changed its name to Heritage Foods Limited in August 2013. Heritage Foods Limited was founded in 1992 and is based in Hyderabad, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 13:01 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.