Heritage Foods Limited (HERITGFOOD) AI Stock Analysis

• Market Cap: ₹44.95B
• Dividend Yield: 0.51%
• Average Volume (3M): 66.08K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.92
• Revenue Growth: 8.60%
• EPS Growth: 14.95%
• Country: IN
• Employees: 3,225
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 4.40
• Shares Outstanding: 92,796,000
• 10 Day Avg. Volume: 138,110
• 30 Day Avg. Volume: 66,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹526.00
• Price Target Upside: 8.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ₹562.00 ▲(16.03% Upside)

Heritage Foods Limited's overall stock score is driven by strong financial performance and a bullish technical outlook. However, the stock's valuation is a concern, with a relatively high P/E ratio and low dividend yield. The lack of earnings call and corporate events data 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. The company's key revenue streams include the sale of milk and value-added dairy products such as curd, paneer, ghee, and buttermilk. Heritage Foods operates a robust supply chain that sources milk directly from farmers, ensuring quality and freshness. The company also benefits from its extensive distribution network, which includes a combination of retail outlets, franchise stores, and partnerships with supermarkets and other retailers. Additionally, Heritage Foods may engage in strategic partnerships or joint ventures to enhance its product offerings and expand its market presence, contributing 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	41.35B	41.35B	37.94B	32.41B	26.79B	24.73B
Gross Profit	8.46B	10.33B	4.68B	6.25B	5.72B	6.14B
EBITDA	3.49B	3.32B	2.14B	1.52B	1.94B	2.71B
Net Income	1.88B	1.88B	1.07B	579.76M	965.69M	1.50B
Balance Sheet
Total Assets	15.58B	15.58B	12.81B	11.25B	9.03B	8.79B
Cash, Cash Equivalents and Short-Term Investments	2.56B	2.56B	2.10B	247.15M	341.81M	217.21M
Total Debt	1.74B	1.74B	1.32B	1.68B	192.52M	684.20M
Total Liabilities	5.86B	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: 484.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 484.35 is below the 20-day moving average (MA) of 495.17, above the 50-day MA of 479.79, and above the 200-day MA of 441.71, indicating a neutral trend. The MACD of 9.28 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.01 is Neutral, 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
VADILALIND	72 Outperform	39.04B	27.91	21.62%	0.39%	8.57%	-8.18%
TATACONSUM	71 Outperform	1.11T	83.13	6.39%	0.74%	14.09%	13.85%
HATSUN	64 Neutral	199.65B	70.43	16.23%	0.67%	8.52%	-10.77%
HERITGFOOD	63 Neutral	₹44.95B	26.89	―	0.51%	8.60%	14.95%
PARAGMILK	62 Neutral	32.13B	26.98	11.61%	0.37%	12.04%	22.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Heritage Foods Limited Corporate Events

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.