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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Heritage Foods Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:33 pm

Market Cap 5,407 Cr.
Current Price 583
High / Low728/209
Stock P/E36.5
Book Value 86.8
Dividend Yield0.43 %
ROCE16.2 %
ROE13.3 %
Face Value 5.00
PEG Ratio0.40

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Heritage Foods Ltd

Competitors of Heritage Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Heritage Foods Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales610605619648670667696821816786818924979
Expenses574548575596607628666799779755778885933
Operating Profit36574452643930223831403945
OPM %6%9%7%8%10%6%4%3%5%4%5%4%5%
Other Income2143-632333332
Interest5531111100232
Depreciation11111213131313131414151515
Profit before tax22423341432918112619262431
Tax %89%37%26%26%25%28%29%31%28%28%31%29%27%
Net Profit226243033211271914181722
EPS in Rs0.292.842.623.263.532.241.370.782.051.481.931.802.41

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3931,6021,7222,0732,3811,8942,3732,5152,7262,4732,6813,2413,506
Expenses1,3391,4971,6251,9892,2481,7612,6282,4583,1082,2122,4953,1093,352
Operating Profit551059784132134-25557-382261186132154
OPM %4%7%6%4%6%7%-11%2%-14%11%7%4%4%
Other Income20475251402138303721211
Interest22191518174920232421668
Depreciation21222534352538455046525658
Profit before tax136461398631090127-1542021308299
Tax %32%22%26%28%36%10%30%35%-10%26%26%29%
Net Profit9504528552786383-169148965871
EPS in Rs0.995.384.883.065.9729.646.768.77-17.2716.1610.416.257.62
Dividend Payout %25%7%15%25%13%3%15%11%-7%15%24%40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)455.56%-10.00%-37.78%96.43%405.45%-77.34%31.75%-303.61%187.57%-35.14%-39.58%
Change in YoY Net Profit Growth (%)0.00%-465.56%-27.78%134.21%309.03%-482.79%109.08%-335.36%491.19%-222.71%-4.45%

Heritage Foods Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:15%
TTM:17%
Compounded Profit Growth
10 Years:8%
5 Years:4%
3 Years:-12%
TTM:120%
Stock Price CAGR
10 Years:21%
5 Years:28%
3 Years:36%
1 Year:155%
Return on Equity
10 Years:14%
5 Years:8%
3 Years:12%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital122323232323232323234646
Reserves130156170217564751776433569631676759
Borrowings1261421571261582802993066919168132
Other Liabilities143172175209250652536226217229234344
Total Liabilities4114925265759961,7071,6359888799031,1251,281
Fixed Assets237271281312296433476481580579622704
CWIP8119108942771882020
Investments11114781,002835152131815140
Other Assets165209235252214263282278267298469416
Total Assets4114925265759961,7071,6359888799031,1251,281

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 977552125115121148117174148-61390
Cash from Investing Activity -29-62-47-66-126-200-133-9769-42-83-252
Cash from Financing Activity -65-1-8-55-1355-3-22-191-93126-76
Net Cash Flow312-44-24-2312-25113-1762

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow55.00-21.00-45.00-73.006.00-24.00-535.00-242.00-688.00192.00167.00-36.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days344432632333
Inventory Days242931283131272441385633
Days Payable1719171615131310791118
Cash Conversion Cycle111418161919201736314718
Working Capital Days-7-22-2-5-6-4-3911293
ROCE %35%26%17%29%64%12%14%-14%31%21%11%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters39.49%39.43%39.43%39.43%39.43%39.22%41.57%41.57%41.57%41.30%41.30%41.30%
FIIs3.47%3.97%1.62%2.04%2.39%2.06%1.98%2.07%1.74%1.73%2.01%3.33%
DIIs14.26%15.57%15.89%14.65%15.56%15.66%15.90%15.88%14.48%11.97%11.74%3.91%
Public42.78%41.04%43.06%43.89%42.61%43.06%40.55%40.48%42.20%44.99%44.96%51.48%
No. of Shareholders30,13533,68337,42039,31539,71940,01043,31542,47452,55257,28756,2251,74,849

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund4,861,0360.92108.9850,0002024-10-069622.07%
Kotak Multicap Fund3,064,0551.0868.750,0002024-10-066028.11%
Kotak Small Cap Fund - Regular Plan1,243,1340.2327.8750,0002024-10-062386.27%
UTI Value Fund1,200,0000.3626.950,0002024-10-062300%
Aditya Birla Sun Life Business Cycle Fund772,6851.1517.3250,0002024-10-061445.37%
Bandhan Small Cap Fund719,1300.7216.1250,0002024-10-061338.26%
L&T Focused Equity Fund353,0001.1210.6450,0002024-10-06606%
Aditya Birla Sun Life Balanced Advantage Fund174,2500.063.9150,0002024-10-06248.5%
UTI Conservative Hybrid Fund50,0000.071.1250,0002024-10-060%
Motilal Oswal Nifty Microcap 250 Index Fund42,3320.210.9550,0002024-10-06-15.34%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)11.486.3320.8132.32-34.55
Diluted EPS (Rs.)11.486.3320.8132.32-34.55
Cash EPS (Rs.)18.7413.2233.2642.40-25.51
Book Value[Excl.RevalReserv]/Share (Rs.)87.0978.22141.72128.5299.52
Book Value[Incl.RevalReserv]/Share (Rs.)87.0978.22141.72128.5299.52
Revenue From Operations / Share (Rs.)408.84349.22577.89533.02587.50
PBDIT / Share (Rs.)23.8716.2043.5658.22-17.18
PBIT / Share (Rs.)17.3210.1532.3148.26-27.98
PBT / Share (Rs.)16.349.7329.4844.13-32.86
Net Profit / Share (Rs.)12.197.1722.0132.44-36.32
NP After MI And SOA / Share (Rs.)11.486.2520.8132.32-34.55
PBDIT Margin (%)5.834.637.5310.92-2.92
PBIT Margin (%)4.232.905.599.05-4.76
PBT Margin (%)3.992.785.108.27-5.59
Net Profit Margin (%)2.982.053.806.08-6.18
NP After MI And SOA Margin (%)2.801.783.606.06-5.88
Return on Networth / Equity (%)13.187.9814.6825.16-34.88
Return on Capital Employeed (%)16.4911.6120.8233.39-19.42
Return On Assets (%)8.315.1510.6917.06-16.22
Long Term Debt / Equity (X)0.090.010.010.050.37
Total Debt / Equity (X)0.110.180.010.060.56
Asset Turnover Ratio (%)3.153.172.992.612.07
Current Ratio (X)1.711.441.591.250.84
Quick Ratio (X)0.850.230.460.290.38
Inventory Turnover Ratio (X)9.039.4310.1810.6815.66
Dividend Payout Ratio (NP) (%)0.0020.0036.037.73-5.78
Dividend Payout Ratio (CP) (%)0.0010.1623.395.91-8.42
Earning Retention Ratio (%)0.0080.0063.9792.27105.78
Cash Earning Retention Ratio (%)0.0089.8476.6194.09108.42
Interest Coverage Ratio (X)24.4538.5250.4414.08-3.52
Interest Coverage Ratio (Post Tax) (X)13.4818.0428.878.89-6.41
Enterprise Value (Cr.)3135.761455.631459.921375.151193.54
EV / Net Operating Revenue (X)0.820.440.540.550.43
EV / EBITDA (X)14.169.687.225.09-14.97
MarketCap / Net Operating Revenue (X)0.820.410.550.550.36
Retention Ratios (%)0.0079.9963.9692.26105.78
Price / BV (X)3.871.852.262.292.15
Price / Net Operating Revenue (X)0.820.410.550.550.36
EarningsYield0.030.040.060.11-0.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Heritage Foods Ltd as of October 8, 2024 is: ₹423.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 8, 2024, Heritage Foods Ltd is Overvalued by 27.41% compared to the current share price ₹583.00

Intrinsic Value of Heritage Foods Ltd as of October 8, 2024 is: ₹811.24

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 8, 2024, Heritage Foods Ltd is Undervalued by 39.15% compared to the current share price ₹583.00

Last 5 Year EPS CAGR: 91.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 2.08, which is a positive sign.
  3. The company has higher reserves (486.00 cr) compared to borrowings (165.17 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.85 cr) and profit (88.38 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 22.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Heritage Foods Ltd:
    1. Net Profit Margin: 2.98%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.49% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.18% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.48
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.85
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.5 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.11
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Heritage Foods Ltd. is a Public Limited Listed company incorporated on 05/06/1992 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L15209TG1992PLC014332 and registration number is 014332. Currently Company is involved in the business activities of Electric power generation, transmission and distribution. Company’s Total Operating Revenue is Rs. 2642.92 Cr. and Equity Capital is Rs. 23.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Milk & Milk ProductsH. No. 8-2-293/82/A/1286 , Plot No. 1286, Hyderabad Telangana 500033hfl@heritagefoods.in
http://www.heritagefoods.in
Management
NamePosition Held
Mrs. Nara BhuvaneswariVice Chairperson & M.D
Mrs. Brahmani NaraExecutive Director
Dr. V Nagaraja NaiduNon Executive Director
Mrs. Aparna SurabhiInd. Non-Executive Woman Director
Mr. Rajesh Thakur AhujaInd. Non-Executive Director
Mr. N Sri Vishnu RajuInd. Non-Executive Director
Mr. M P Vijay KumarInd. Non-Executive Director
Mr. A V Girija KumarInd. Non-Executive Director

FAQ

What is the latest fair value of Heritage Foods Ltd?

The latest fair value of Heritage Foods Ltd is ₹423.18.

What is the Market Cap of Heritage Foods Ltd?

The Market Cap of Heritage Foods Ltd is 5,407 Cr..

What is the current Stock Price of Heritage Foods Ltd as on 07 October 2024?

The current stock price of Heritage Foods Ltd as on 07 October 2024 is ₹583.

What is the High / Low of Heritage Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of Heritage Foods Ltd stocks is 728/209.

What is the Stock P/E of Heritage Foods Ltd?

The Stock P/E of Heritage Foods Ltd is 36.5.

What is the Book Value of Heritage Foods Ltd?

The Book Value of Heritage Foods Ltd is 86.8.

What is the Dividend Yield of Heritage Foods Ltd?

The Dividend Yield of Heritage Foods Ltd is 0.43 %.

What is the ROCE of Heritage Foods Ltd?

The ROCE of Heritage Foods Ltd is 16.2 %.

What is the ROE of Heritage Foods Ltd?

The ROE of Heritage Foods Ltd is 13.3 %.

What is the Face Value of Heritage Foods Ltd?

The Face Value of Heritage Foods Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Heritage Foods Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE