Please refer to important disclosures at the end of this report
1
Heritage Foods Limited, (HFL) formerly Heritage Foods (India) Ltd., is a fast-
moving consumer goods (FMCG) company with six-business divisions namel
y
Dairy, Retail, Agri, Bakery, Renewable Energy and Vetca. HFL is a leading private
dairy player with 10-12% organised market share in South India. Along with
organic growth potential, HFL is also looking at partnerships in the value added
segment and is in discussions with international players for medium shelf life
products like curd and yogurt. The company is smartly on both sides of the high-
returns pouch milk segment and high-growth & margin accretive medium shel
f
life curd and yogurt segment. HFL is a strong brand in the high growth pouch
milk segment which is gaining its presence and momentum with the shift o
f
business from unorganised to organised players. Given the strong brand connect
in South India, high return ratios and strong anticipated earnings growth, HFL
looks promising from long term prospective. The company has reported a
healthy profit growth of 112% CAGR and Return on Equity (RoE) of 26% for the
last 5 years. Hence Buy.
BUY
CMP `1,093
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 39.9
MF / Banks / Indian Fls 21.2
FII / NRIs / OCBs 8.3
Indian Public / Others 30.7
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
Heritage Foods 22.8 110.3 439.8
52 Week High / Low 1174/493
Avg. Daily Volume 10,884
FMCG
Market Cap (
`
cr) 2,536
10
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
Reuters Code HEFI.BO
HTFL@IN
1.0
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Heritage Foods
Others | FMCG
March 14, 2017
Heritage Foods | FMCG
March 14, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Heritage Foods
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
< -15
)