Heritage Foods Ltd

About

Heritage Foods is engaged in the business of procurement and processing of Milk & Milk products and also generation of power through solar & wind for the captive consumption of its dairy plants.[1] The company has a reach to over 15 lakh households in India.[2]

Key Points

Sales Breakup
Milk - 65%
Value Added Products - 27%
Fat - 6%
Others - 2%[1]

Read More
  • Market Cap 2,022 Cr.
  • Current Price 436
  • High / Low 565 / 268
  • Stock P/E 16.8
  • Book Value 137
  • Dividend Yield 1.15 %
  • ROCE 31.1 %
  • ROE 28.6 %
  • Face Value 5.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 21.70% CAGR over last 5 years

Cons

  • Stock is trading at 3.18 times its book value
  • Promoter holding has decreased over last quarter: -0.41%
  • The company has delivered a poor sales growth of 0.77% over past five years.
  • Company has a low return on equity of 3.75% for last 3 years.

Peer comparison

Sector: FMCG Industry: Food - Processing - Indian

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
619 635 721 680 672 653 639 610 605 619 648 670
627 658 712 798 693 980 584 574 548 575 596 607
Operating Profit -8 -23 9 -118 -21 -327 55 36 57 44 52 64
OPM % -1% -4% 1% -17% -3% -50% 9% 6% 9% 7% 8% 10%
Other Income 55 71 39 143 55 139 68 2 1 4 3 -6
Interest 5 6 6 5 5 6 6 5 5 3 1 1
Depreciation 11 11 13 13 13 12 12 11 11 12 13 13
Profit before tax 30 31 30 7 16 -207 106 22 42 33 41 43
Tax % 34% 35% 39% -56% 28% -1% 10% 89% 37% 26% 26% 25%
Net Profit 19 22 20 14 15 -209 96 3 26 24 30 33
EPS in Rs 4.08 4.64 4.31 3.08 3.15 -45.09 20.64 0.58 5.67 5.27 6.52 7.05

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
900 1,096 1,393 1,602 1,722 2,073 2,381 1,894 2,373 2,515 2,726 2,473 2,543
850 1,058 1,339 1,497 1,625 1,989 2,248 1,761 2,628 2,458 3,108 2,213 2,326
Operating Profit 50 38 55 105 97 84 132 134 -255 57 -382 261 217
OPM % 6% 3% 4% 7% 6% 4% 6% 7% -11% 2% -14% 11% 9%
Other Income 3 4 2 0 4 7 5 251 402 138 303 8 1
Interest 23 19 22 19 15 18 17 49 20 23 24 21 10
Depreciation 20 20 21 22 25 34 35 25 38 45 50 46 49
Profit before tax 11 3 13 64 61 39 86 310 90 127 -154 202 159
Tax % 49% 62% 32% 22% 26% 28% 36% 10% 30% 35% -10% 26%
Net Profit 6 1 9 50 45 28 55 275 63 81 -160 150 114
EPS in Rs 1.19 0.24 1.99 10.77 9.76 6.11 11.95 59.29 13.53 17.55 -34.55 32.32 24.51
Dividend Payout % 38% 126% 25% 7% 15% 25% 13% 3% 15% 11% -7% 15%
Compounded Sales Growth
10 Years: 8%
5 Years: 1%
3 Years: 1%
TTM: -1%
Compounded Profit Growth
10 Years: 61%
5 Years: 22%
3 Years: 34%
TTM: 225%
Stock Price CAGR
10 Years: 27%
5 Years: 0%
3 Years: -5%
1 Year: 50%
Return on Equity
10 Years: 16%
5 Years: 14%
3 Years: 4%
Last Year: 29%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
12 12 12 12 23 23 23 23 23 23 23 23 23
Reserves 75 75 81 130 156 170 217 564 751 776 433 569 612
Borrowings 184 154 140 126 142 157 126 158 280 299 306 64 37
103 137 176 143 172 175 209 250 652 536 226 222 240
Total Liabilities 374 378 410 411 492 526 575 996 1,707 1,635 988 879 912
215 222 230 237 271 281 312 296 433 476 481 580 579
CWIP 9 10 9 8 11 9 10 8 9 42 77 18 6
Investments 0 0 0 1 1 1 1 478 1,002 835 152 13 88
150 147 170 165 209 235 252 214 263 282 278 267 239
Total Assets 374 378 410 411 492 526 575 996 1,707 1,635 988 879 912

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
31 52 60 97 75 52 125 115 121 148 117 174
-27 -30 -26 -29 -62 -47 -66 -126 -200 -133 -97 69
-11 -17 -31 -65 -1 -8 -55 -13 55 -3 -22 -191
Net Cash Flow -6 4 3 3 12 -4 4 -24 -23 12 -2 51

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 5 5 3 3 4 4 4 3 2 6 3 2
Inventory Days 42 29 32 24 29 31 28 31 31 27 24 39
Days Payable 37 17 22 17 19 17 16 15 13 13 10 7
Cash Conversion Cycle 10 17 12 11 14 18 16 19 19 20 17 35
Working Capital Days 15 -6 -8 -0 1 5 1 -4 -0 1 3 9
ROCE % 13% 9% 15% 35% 26% 17% 29% 65% 12% 14% -14% 31%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
39.90 39.90 39.90 39.90 39.90 39.90 39.90 39.90 39.90 39.90 39.90 39.49
5.94 5.80 5.55 5.40 4.56 4.61 5.08 4.23 4.55 3.79 2.84 3.47
10.64 11.77 13.39 13.57 14.16 14.78 13.95 14.86 15.46 13.51 13.93 14.26
43.52 42.53 41.16 41.13 41.38 40.71 41.07 41.01 40.10 42.80 43.33 42.78

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