Heritage Foods Limited (HERITGFOOD) AI Stock Analysis

• Market Cap: ₹44.88B
• Dividend Yield: 0.52%
• Average Volume (3M): 58.61K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.85
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹524.00 ▲(10.01% 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.

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	1.94B	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	341.81M	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: Negative
• Last Price: 476.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HERITGFOOD, the sentiment is Negative. The current price of 476.3 is below the 20-day moving average (MA) of 485.77, below the 50-day MA of 488.45, and above the 200-day MA of 443.42, indicating a neutral trend. The MACD of -2.01 indicates Positive momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹1.17T	85.65	―	0.71%	15.34%	14.67%
PARAGMILK	70 Outperform	₹37.62B	31.59	―	0.31%	12.04%	22.26%
VADILALIND	68 Neutral	₹38.09B	27.23	―	0.40%	8.57%	-8.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹44.88B	25.96	―	0.52%	9.83%	-0.92%
HATSUN	61 Neutral	₹227.17B	69.12	―	0.58%	10.61%	7.97%

Heritage Foods Limited Corporate Events

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.

Heritage Foods Wins Golden Peacock Award for Corporate Governance

Heritage Foods Limited has been awarded the prestigious ‘Golden Peacock Award for Excellence in Corporate Governance 2025’ by the Institute of Directors. This accolade highlights the company’s dedication to transparency, accountability, and ethical practices, reinforcing stakeholder trust and enhancing its reputation in the industry.

Heritage Foods Extends Resignation Date of HR Chief for Smooth Transition

Heritage Foods Limited has announced an extension in the resignation date of its Chief Human Resources Officer, Mr. Sannu Francis Clement. Originally set to leave on August 22, 2025, Mr. Clement will now remain with the company until October 15, 2025, to ensure business continuity and a smooth transition of responsibilities. This decision reflects the company’s focus on maintaining operational stability during leadership changes.

Heritage Foods Launches ‘Saksham Niveshak’ Campaign to Secure Shareholder Dividends

Heritage Foods Limited has announced its participation in the ‘Saksham Niveshak’ campaign, a 100-day initiative led by the Investor Education and Protection Fund Authority under the Ministry of Corporate Affairs. This campaign aims to encourage shareholders to update their details and claim any unpaid or unclaimed dividends to prevent them from being transferred to the Investor Education and Protection Fund. The company has provided detailed instructions for shareholders to update their information and ensure dividends are credited electronically to their bank accounts, thereby enhancing shareholder engagement and compliance.