NSEI:HERITGFOOD

Stock Analysis Report

Executive Summary

Heritage Foods Limited procures and processes milk and milk products in India.


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

HERITGFOODIndustryMarket
7 Day34.7%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 Year32.5%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

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

NamePositionTenureCompensationOwnership
Nara Bhuvaneswari
Vice Chairperson & MD14.67yrs₹69.36m22.98% 2.1b
M. Rao
President2yrs₹26.78m0.48% 43.2m
A. Naidu
Chief Financial Officerno data₹5.67mno data
Umakanta Barik
Compliance Officer & Company Secretary12.17yrs₹2.82mno data
Jangam Murthy
Head of Dairy Division5.58yrsno data0.0013% 115.8k
Nara Brahmani
Executive Director6.67yrs₹55.49m0.44% 39.1m
Dheeraj Tandon
Head of HR & GMno datano data0.000090% 8.1k
Kotta Raja Babu
IT Head & GMno datano datano 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

NamePositionTenureCompensationOwnership
Nara Bhuvaneswari
Vice Chairperson & MD14.67yrs₹69.36m22.98% 2.1b
Nara Brahmani
Executive Director6.67yrs₹55.49m0.44% 39.1m
Devineni Seetharamaiah
Non-Executive Independent Chairpersonno data₹390.00kno data
Vadlamudi Naidu
Non-Executive Director27.67yrs₹220.00k0.22% 19.4m
Nandyala Sri Raju
Non-Executive Independent Director6.42yrs₹390.00kno data
Rajesh Ahuja
Non-Executive Independent Director4yrs₹240.00kno data
Aparna Surabhi
Non-Executive Independent Woman Director0.83yr₹20.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
519552BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1996
HERITGFOODNSEI (National Stock Exchange of India)YesEquity SharesININRNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:01
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.