In the realm of India’s dairy industry, Heritage Foods Ltd stands as a prominent player, with a rich legacy rooted in the procurement and processing of milk and milk products. Their commitment to sustainability extends beyond dairy, as they harness solar and wind energy to power their facilities. With a far-reaching presence that touches over 15 lakh households across the country, Heritage Foods has carved a niche for itself. As we delve into the future, investors and enthusiasts alike ponder the trajectory of Heritage Foods’ share price. Can it ascend to the coveted 500 INR mark by 2030? To explore this captivating question, we delve into an analysis of the company’s performance and potential in the coming years.
About Heritage Foods
Founded in 1992 by Nara Chandrababu Naidu, the former Chief Minister of Andhra Pradesh, Heritage Foods Limited, known as Heritage Foods, is a prominent player in the private dairy sector in Southern India. It has diversified into various sectors, including Dairy, Retail, and Agribusiness, and had an annual turnover exceeding USD 200 million as of FY 2008-09, showcasing significant growth.
Heritage Foods is renowned for its top-quality dairy products, distributed across multiple Indian states, and it aims to expand nationwide. The company strategically chose Chittoor district in Andhra Pradesh for milk procurement due to its high-yielding crossbred cow population. Today, Heritage Foods has a strong presence in Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Delhi, and Kerala, offering a diverse range of dairy and food products. In 1994, it entered the public domain through a successful Public Issue, listing its shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), solidifying its position as a major player in the dairy industry with aspirations for pan-India dominance.
Heritage Foods Q3 FY24 Results Summary
- Q3 FY24 Revenue increased by 19.74% YoY.
- Profit surged by 96% YoY, reaching ₹2.9 EPS for Q3 FY24, up by 93.2% YoY.
- Despite a 3.83% decline in revenue compared to the previous quarter, profit increased by 20.02%.
- Selling, general & administrative expenses rose by 6.85% q-o-q and 18.29% y-o-y.
- Operating income showed a significant increase of 13.66% q-o-q and 98.83% y-o-y.
- Heritage Foods witnessed a 5% return in the last week, a 37.08% return in the last 6 months, and an 11.52% YTD return.
- Market capitalization stands at ₹3138.82 Cr with a 52wk high/low of ₹342.7 & ₹135.15 respectively.
- Analyst consensus as of 31 Jan 2024, indicates a Strong Buy rating from all 4 analysts covering the company.
To buy Heritage Foods shares in India, you can use the services of various stockbrokers and trading platforms. Here are some popular options:
- Zerodha
- HDFC Securities
- ICICI Direct
- Kotak Securities
- Sharekhan
- Angel Broking
- 5Paisa
- Upstox
- Motilal Oswal
- Axis Direct
| When | Maximum Price | Minimum Price |
| February 2024 | 342.36 | 297.70 |
| March 2024 | 349.35 | 303.78 |
| April 2024 | 339.17 | 294.93 |
| May 2024 | 334.16 | 290.57 |
| June 2024 | 346.19 | 301.03 |
| July 2024 | 342.73 | 298.02 |
| August 2024 | 356.44 | 309.94 |
| September 2024 | 370.69 | 322.34 |
| October 2024 | 363.43 | 316.02 |
| November 2024 | 374.33 | 325.50 |
| December 2024 | 383.69 | 333.64 |
In 2024, Heritage Foods’ share price targets show a gradual upward trend, indicating a positive outlook for investors. Starting from February with a maximum of ₹342.36 and a minimum of ₹297.70, the prices steadily climb month by month, reaching a maximum of ₹383.69 and a minimum of ₹333.64 by December. This trajectory suggests confidence in the company’s performance and prospects.
With a market capitalization of ₹2,942 Cr., the current price at ₹317 (as of 19th Feb 2024), and a 52-week high/low of ₹343 / ₹135, Heritage Foods exhibits a P/E ratio of 35.0, a book value of ₹79.9, and a dividend yield of 0.79%, making it an attractive investment option in the market.
| When | Maximum Price | Minimum Price |
| January 2025 | 391.36 | 301.05 |
| February 2025 | 401.39 | 308.77 |
| March 2025 | 417.05 | 320.81 |
| April 2025 | 408.87 | 314.52 |
| May 2025 | 396.96 | 305.36 |
| June 2025 | 414.83 | 319.10 |
| July 2025 | 406.69 | 312.84 |
| August 2025 | 419.27 | 322.52 |
| September 2025 | 433.94 | 333.80 |
| October 2025 | 445.23 | 342.48 |
| November 2025 | 456.36 | 351.04 |
| December 2025 | 467.77 | 359.82 |
In 2025, Heritage Foods’ share price targets continue to exhibit a bullish trend, with prices steadily increasing month by month. Starting from a maximum of ₹391.36 and a minimum of ₹301.05 in January, the prices reach a maximum of ₹467.77 and a minimum of ₹359.82 by December.
| When | Maximum Price | Minimum Price |
| January 2026 | 481.80 | 370.62 |
| February 2026 | 494.15 | 380.12 |
| March 2026 | 513.43 | 394.94 |
| April 2026 | 503.36 | 387.20 |
| May 2026 | 488.70 | 375.92 |
| June 2026 | 510.69 | 392.84 |
| July 2026 | 500.68 | 385.14 |
| August 2026 | 516.16 | 397.05 |
| September 2026 | 534.23 | 410.94 |
| October 2026 | 548.12 | 421.63 |
| November 2026 | 561.82 | 432.17 |
| December 2026 | 575.86 | 442.97 |
In 2026, Heritage Foods’ share price targets continue their upward trajectory, with prices consistently rising month by month. From a maximum of ₹481.80 and a minimum of ₹370.62 in January, the prices peak at ₹575.86 and a minimum of ₹442.97 by December.
| When | Maximum Price | Minimum Price |
| January 2027 | 587.38 | 451.83 |
| February 2027 | 602.44 | 463.42 |
| March 2027 | 625.94 | 481.49 |
| April 2027 | 613.66 | 472.05 |
| May 2027 | 595.79 | 458.30 |
| June 2027 | 622.60 | 478.92 |
| July 2027 | 610.39 | 469.53 |
| August 2027 | 629.27 | 484.06 |
| September 2027 | 651.30 | 501.00 |
| October 2027 | 668.23 | 514.02 |
| November 2027 | 684.94 | 526.87 |
| December 2027 | 702.06 | 540.05 |
| When | Maximum Price | Minimum Price |
| January 2028 | 716.10 | 550.85 |
| February 2028 | 734.46 | 564.97 |
| March 2028 | 763.11 | 587.00 |
| April 2028 | 748.14 | 575.49 |
| May 2028 | 726.35 | 558.73 |
| June 2028 | 759.04 | 583.88 |
| July 2028 | 744.16 | 572.43 |
| August 2028 | 767.17 | 590.13 |
| September 2028 | 794.02 | 610.79 |
| October 2028 | 814.67 | 626.67 |
| November 2028 | 835.03 | 642.33 |
| December 2028 | 855.91 | 658.39 |
| When | Maximum Price | Minimum Price |
| January 2029 | 873.03 | 671.56 |
| February 2029 | 895.41 | 688.78 |
| March 2029 | 930.33 | 715.64 |
| April 2029 | 912.09 | 701.61 |
| May 2029 | 885.53 | 681.17 |
| June 2029 | 925.37 | 711.83 |
| July 2029 | 907.23 | 697.87 |
| August 2029 | 935.29 | 719.45 |
| September 2029 | 968.02 | 744.63 |
| October 2029 | 993.19 | 763.99 |
| November 2029 | 1,018.02 | 783.09 |
| December 2029 | 1,043.47 | 802.67 |
| When | Maximum Price | Minimum Price |
| January 2030 | 1,064.34 | 818.72 |
| February 2030 | 1,091.63 | 839.72 |
| March 2030 | 1,134.21 | 872.47 |
| April 2030 | 1,111.97 | 855.36 |
| May 2030 | 1,079.58 | 830.45 |
| June 2030 | 1,128.16 | 867.82 |
| July 2030 | 1,106.04 | 850.80 |
| August 2030 | 1,140.25 | 877.11 |
| September 2030 | 1,180.16 | 907.81 |
| October 2030 | 1,210.84 | 931.42 |
| November 2030 | 1,241.11 | 954.70 |
| December 2030 | 1,272.14 | 978.57 |
Heritage Foods Financial Condition: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 2,515 | 2,726 | 2,473 | 2,681 | 3,241 |
| Expenses (Rs. Crores) | 2,458 | 3,108 | 2,212 | 2,495 | 3,109 |
| Operating Profit (Rs. Crores) | 57 | -382 | 261 | 186 | 132 |
| Other Income (Rs. Crores) | 138 | 303 | 7 | 2 | 12 |
| Interest (Rs. Crores) | 23 | 24 | 21 | 6 | 6 |
| Depreciation (Rs. Crores) | 45 | 50 | 46 | 52 | 56 |
| Profit before Tax (Rs. Crores) | 127 | -154 | 202 | 130 | 82 |
| Net Profit (Rs. Crores) | 83 | -169 | 148 | 96 | 58 |
| EPS (Rs.) | 8.77 | -17.27 | 16.16 | 10.41 | 6.25 |
| Dividend Payout (%) | 11 | -7 | 15 | 24 | 40 |
Heritage Foods’ financial performance over the past five years reflects a mixed trajectory. Starting in 2019, the company saw a steady increase in sales, reaching 3,241 crores in 2023, indicating growing revenue streams. However, expenses also escalated during this period, with 2020 particularly challenging, resulting in a negative operating profit. Nevertheless, the company managed to rebound, showing positive operating profits from 2021 onwards.
The net profit also witnessed fluctuations, with a notable dip in 2020, but recovering in subsequent years, demonstrating the company’s resilience. The earnings per share (EPS) followed a similar pattern, showcasing the company’s ability to generate value for its shareholders. Importantly, the dividend payout percentage increased substantially, reaching 40% in 2023, signifying the company’s commitment to rewarding its investors. Overall, Heritage Foods’ financial condition over the last five years reveals a firm that navigated challenges and ultimately emerged with improved profitability and shareholder dividends.
HDFC Securities recommends purchasing Heritage Foods with a target price of Rs 355.
Also read:
- ELECON ENGINEERING COMPANY SHARE PRICE TARGET 2023, 2024, 2025 TO 2030: CAN ELECON ENGINEERING COMPANY REACH 2000 INR?
- PROCTER & GAMBLE HEALTH LTD SHARE PRICE TARGET 2023, 2024, 2025 TO 2030: CAN PROCTER & GAMBLE HEALTH LTD REACH 10000 INR?
- KIRLOSKAR OIL ENGINES SHARE PRICE TARGET 2023, 2024, 2025 TO 2030: CAN KIRLOSKAR OIL ENGINES REACH 1000 INR?
FAQs
Based on the analysis, Heritage Foods’ share price is expected to continue its upward trend. The range spans from ₹301.05 to ₹467.77 during the analysis suggesting a positive outlook for the company, making it a potentially attractive investment for the long term.
Looking at the analysis, Heritage Foods’ share price is projected to experience significant growth by 2030. The range spans from ₹818.72 to ₹1,272.14 during the analyzed period, indicating the potential for substantial gains over the next few years.
Is it worthwhile to invest in Heritage Foods for the long term?
Considering the consistent upward trajectory in Heritage Foods’ share prices over the years, it appears to be a promising candidate for long-term investment. The analysis suggests that the company has maintained its appeal to investors and offers the potential for sustained growth.
Will the Heritage Foods stock grow?
Yes, based on the provided analysis, it is likely that Heritage Foods’ stock will continue to grow. The data shows a consistent pattern of increasing share prices over the years, reflecting a positive sentiment among investors and a favorable market environment.
Can Heritage Foods reach ₹500 INR?
While the analysis does not provide a specific target of ₹500 INR, the analysis indicates that Heritage Foods’ share price has been on an upward trajectory. Given this trend, reaching ₹500 INR per share is within the realm of possibility in the future, depending on market conditions and the company’s performance.
Conclusion
In conclusion, the analysis of Heritage Foods’ performance and market indicators suggests an intriguing trajectory for the company’s share price in the coming years. With a current price of ₹317 and a high/low range of ₹343/₹135, there is a significant growth potential. However, it’s important to note that the stock is currently trading at a P/E ratio of 35.0, which is higher than the median P/E of 24.9, indicating some level of overvaluation.
The company’s strengths lie in its dividend payout of 40%, a book value of ₹79.0, and a reasonable ROCE of 10.6% and ROE of 7.91%. On the flip side, the challenge for Heritage Foods has been its relatively poor sales growth of 6.48% over the past five years.
While it’s unclear if Heritage Foods can precisely reach ₹500 INR per share, the historical data suggests a positive outlook for investors. However, potential investors should exercise caution, considering the current high P/E ratio and the need for sustained sales growth to support such lofty price targets. In the end, Heritage Foods presents an intriguing opportunity, but thorough research and monitoring of its performance are essential for anyone considering an investment in the company.
What did we learn?
- 1 About Heritage Foods
- 2 Heritage Foods Q3 FY24 Results Summary
- 3 How to Purchase Heritage Foods Shares?
- 4 Heritage Foods Share Price Target 2024 – 2030
- 4.1 Heritage Foods Share Price Target for 2024
- 4.2 Heritage Foods Share Price Target for 2025
- 4.3 Heritage Foods Share Price Target for 2026
- 4.4 Heritage Foods Share Price Target for 2027
- 4.5 Heritage Foods Share Price Target for 2028
- 4.6 Heritage Foods Share Price Target for 2029
- 4.7 Heritage Foods Share Price Target for 2030
- 5 Heritage Foods Financial Condition: Last 5 Years
- 6 Heritage Foods Share Price Target by HDFC Securities
- 7 FAQs
- 8 Conclusion
