Heritage Foods Limited (HERITGFOOD) AI Stock Analysis

• Market Cap: ₹41.37B
• Dividend Yield: 0.54%
• Average Volume (3M): 58.61K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 2.00
• Revenue Growth: 9.83%
• EPS Growth: -0.92%
• Country: IN
• Employees: 3,225
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 5.50
• Shares Outstanding: 92,796,000
• 10 Day Avg. Volume: 17,779
• 30 Day Avg. Volume: 58,609
• PEG Ratio: 0.25
• Price to Book (P/B): 3.76
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 97.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹524.00 ▲(12.71% Upside)

Heritage Foods Limited's overall stock score is driven by its strong financial performance, particularly in revenue growth and profitability margins. However, technical indicators suggest mixed market sentiment, and valuation metrics indicate moderate pricing. The lack of earnings call data and notable corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term sustainability.

Profitability Margins

Improving profitability margins suggest operational efficiency and cost management, supporting sustained earnings growth.

Balance Sheet Health

Low leverage and strong equity financing provide financial stability and flexibility for future investments and growth.

Negative Factors

Cash Flow Volatility

Volatile cash flow can challenge liquidity, especially if capital expenditures continue to outpace cash generation, impacting financial resilience.

Capital Expenditures

High capital expenditures may strain cash reserves and limit the ability to fund other strategic initiatives without additional financing.

Earnings Growth Challenges

Negative EPS growth indicates potential challenges in profitability and earnings expansion, which could affect investor confidence and valuation.

Heritage Foods Limited Business Overview & Revenue Model

Company Description

Heritage Foods Limited procures and processes milk and milk products in India. The company operates through Dairy, Renewable Energy, and Feed segment. The Dairy segment produces and markets dairy products, including fresh milk, curd, butter milk, lassi, ice cream, paneer, cooking butter, table butter, flavored milk, UHT milk, sweets, ghee, cheese, cold coffee, cream, skimmed milk powder, frozen desserts, and milk shake. This division also operates and franchises 859 Heritage Parlour outlets. In addition, it exports dairy products to Europe, the Gulf countries, and various countries in Asia. The Renewable Energy segment operates a solar power plant with a capacity of 4.20 MW; and wind power plant with a capacity of 6.30 MW in the states of Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, and Karnataka. The Feed segment manufactures and sells 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 incorporated in 1992 and is headquartered in Hyderabad, India.

How the Company Makes Money

Heritage Foods Limited generates revenue primarily through the sale of its dairy products, which constitute a significant portion of its portfolio. The company also earns income from its poultry operations and processed food items. Key revenue streams include retail sales in supermarkets and grocery stores, direct-to-consumer sales through online platforms, and distribution agreements with food service providers. Additionally, Heritage Foods has established strategic partnerships with local farmers for sourcing raw materials, ensuring quality control and sustainability. The company's focus on brand loyalty, product innovation, and expanding its market presence both domestically and internationally further contributes to its earnings.

Heritage Foods Limited Financial Statement Overview

Summary

Heritage Foods Limited shows strong financial performance with consistent revenue growth and improving profitability margins. The balance sheet is solid with low leverage, but cash flow management needs improvement due to significant capital expenditures impacting free cash flow.

Income Statement

Heritage Foods Limited has demonstrated consistent revenue growth over the years, with a notable increase in gross profit and net income margins. The gross profit margin has risen to approximately 25.0%, and the net profit margin has improved to about 4.6% in the most recent fiscal year. The company also shows a positive trend in EBIT and EBITDA margins, indicating operational efficiency improvements. However, fluctuations in EBIT in earlier years suggest some past operational challenges.

Balance Sheet

The company maintains a healthy balance sheet, with a debt-to-equity ratio of 0.18, indicating low leverage and financial stability. The equity ratio stands at around 62.4%, reflecting strong equity financing. Return on equity (ROE) has improved to approximately 19.4%, showcasing effective utilization of shareholders' equity. Nonetheless, there is a slight concern over the increase in total liabilities in recent years.

Cash Flow

Heritage Foods has experienced volatility in free cash flow, with a significant drop in the most recent year. The operating cash flow to net income ratio is robust at 1.14, indicating good cash generation from operations relative to net income. However, the free cash flow to net income ratio is relatively low, reflecting heavy capital expenditures impacting free cash flow. This could pose liquidity challenges if capital spending continues to outpace cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.39B	41.35B	37.94B	32.41B	26.79B	24.73B
Gross Profit	9.45B	5.41B	4.68B	6.25B	5.72B	6.14B
EBITDA	3.27B	3.32B	2.14B	1.52B	1.86B	2.71B
Net Income	1.70B	1.88B	1.07B	579.76M	965.69M	1.50B
Balance Sheet
Total Assets	0.00	15.58B	12.81B	11.25B	9.03B	8.79B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.56B	2.10B	247.15M	351.01M	227.88M
Total Debt	0.00	1.74B	1.32B	1.68B	192.52M	684.20M
Total Liabilities	-9.72B	5.86B	4.73B	3.99B	2.45B	2.82B
Stockholders Equity	9.72B	9.72B	8.08B	7.26B	6.58B	5.96B
Cash Flow
Free Cash Flow	0.00	374.81M	2.63B	-1.44B	1.01B	813.24M
Operating Cash Flow	0.00	2.14B	3.90B	-605.05M	1.48B	1.74B
Investing Cash Flow	0.00	-2.29B	-2.52B	-826.24M	-424.45M	688.03M
Financing Cash Flow	0.00	9.98M	-759.30M	1.26B	-926.55M	-1.91B

Heritage Foods Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 464.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HERITGFOOD, the sentiment is Neutral. The current price of 464.9 is above the 20-day moving average (MA) of 460.75, below the 50-day MA of 470.59, and above the 200-day MA of 457.76, indicating a neutral trend. The MACD of -2.76 indicates Negative momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 83.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:HERITGFOOD.

Heritage Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATACONSUM	71 Outperform	₹1.16T	85.38	―	0.70%	15.34%	14.67%
VADILALIND	68 Neutral	₹33.40B	24.86	―	0.42%	11.81%	-12.36%
PARAGMILK	65 Neutral	₹33.80B	24.17	―	0.33%	13.73%	32.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹41.37B	23.94	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹208.56B	63.45	―	0.61%	10.61%	7.97%

Heritage Foods Limited Corporate Events

Heritage Foods Executes Share Purchase Agreement for 51% Stake in Peanutbutter and Jelly Pvt Ltd

Heritage Foods Limited has executed a Share Purchase Agreement to acquire 51% of the equity share capital of Peanutbutter and Jelly Private Limited from Sky Gate Hospitality Private Limited, formalising a previously announced transaction. The share transfer process under this agreement is now underway, with the company stating it will notify the stock exchanges upon completion, signaling a strategic move to deepen its footprint in the packaged foods segment and potentially broaden its product offerings and market reach.

Heritage Foods Secures GST Refund in Favorable Ruling

Heritage Foods Limited announced a favorable decision from the Joint Commissioner of Central Tax, Chennai, regarding a refund of GST paid under protest on flavored milk supplies in Tamil Nadu. The company will receive a refund of Rs. 77.95 lakhs, which positively impacts its financials and resolves previous disputes over GST payments, enhancing its operational efficiency.

Heritage Foods Releases Q2 FY’26 Earnings Call Transcript

Heritage Foods Limited recently held a conference call with investors and analysts to discuss its Q2 FY’26 earnings. The transcript of this call is now available on the company’s website. This initiative reflects the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning by fostering investor confidence.