Buy Heritage Foods, target price Rs 380: ICICI Securities

ICICI Securities has buy call on Heritage Foods with a target price of Rs 380. The current market price of Heritage Foods is Rs 326.

Heritage Foods Ltd., incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 1513.73 Crore) operating in FMCG sector.

Heritage Foods Ltd. key Products/Revenue Segments include Dairy And Food Processing, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 819.05 Crore, down -.55 % from last quarter Total Income of Rs 823.57 Crore and up 21.67 % from last year same quarter Total Income of Rs 673.20 Crore. Company reported net profit after tax of Rs 21.31 Crore in latest quarter.

Investment Rationale
The brokerage models Heritage to report revenue and PAT CAGRs of 18.4% and 25.4% respectively over FY22-FY24E with RoE > cost of capital. It remains positive on the business led by competitive advantages and strong growth opportunity. It maintains BUY and value it as per DCF at Rs380 (implied P/E 10.5x FY24E).

Promoter/FII Holdings
Promoters held 39.43 per cent stake in the company as of 30-Jun-2022, while FIIs owned 2.04 per cent, DIIs 14.65 per cent.