Heritage Foods Stock Analysis

About Company
Heritage foods are traditional foods that have been eaten by people in a particular region or culture for many generations. These foods are often prepared using traditional cooking methods and local ingredients that have been passed down from generation to generation. Heritage foods often have distinctive flavors or recipes that reflect the history and culture of a particular place. They help keep cultural traditions alive and are an important part of celebrating festivals and family gatherings. Examples include dishes like idli and dosa in South India, kimchi in Korea, and tortillas in Mexico. Heritage foods connect people to their roots and remind them of their ancestors and traditions.

Parent Entity
HFL is the parent entity of the Hyderabad-
based Heritage group of Mr. Nara Chandra Babu Naidu, which sells milk and dairy products under the Heritage brand.

Business Divisions
Heritage Foods is mainly involved in the dairy business, producing and selling products like fresh milk, curd, buttermilk, lassi, ice cream, paneer, ghee, butter, milk powder, flavored milk, UHT milk, and dairy whitener. The company also manufactures and provides animal nutrition products through its subsidiary, offering livestock feed for dairy farmers. Additionally, Heritage Foods has a renewable energy segment, generating solar and wind energy for its own use in dairy factories. In the past, Heritage Foods was also involved in retail and agriculture, but today its key businesses focus on dairy, animal nutrition, and renewable energy.

Geographical Footprint
Heritage Foods operates mainly in South and West India, but its presence is growing across the country. The company’s headquarters is in Hyderabad, Telangana. Its products are sold in states like Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Maharashtra, Odisha, Delhi (NCR), Haryana, Uttar Pradesh, Punjab, Rajasthan, and Uttarakhand. Heritage Foods has many milk procurement centers in rural areas of these states and runs processing plants in places like Andhra Pradesh, Telangana, Karnataka, Maharashtra, Haryana, and Tamil Nadu. Their wide distribution network delivers products to shops and homes in these regions, helping them reach millions of customers across India.

Distribution Network
Heritage Foods has a very large and effective distribution network to make sure its products reach customers fresh and quickly. The company sells its dairy products in 12 Indian states through more than 180,000 retail outlets, over 850 exclusive Heritage Parlours, and more than 237 company-owned “Happiness Points” stores. Heritage Foods also works with more than 6,900 distributors and has a fleet of over 2,100 vehicles to deliver products. Their distribution centers and franchise stores help supply products to big cities and rural areas alike. In addition, Heritage Foods is present on e-commerce platforms and modern trade channels, making it easy for customers to buy their products almost anywhere.

Company's Financial Prospects

Market Valuation & Stock Price
Currently, the market valuation of Heritage Foods is 4,343 crores, and the stock price is 468.

Sales & Profit in the Last 5 Years
In FY 2020-21, sales were 2,473 crores and profits were 148 crores. In FY 2021-22, sales were 2,681 crores and profits were 96 crores. In FY 2022-23, sales were 3,241 crores and profits were 58 crores. In FY 2023-24, sales were 3,794 crores and profits were 107 crores. In FY 2024-25, sales were 4,135 crores and profits were 188 crores.

Sales & Profit Growth in the Last 5 Years
The last 5 years sales growth is 8.69%, and profit growth is 25.6%. The last 3 years sales growth is 15.5%, and profit growth is 21.8%. The last 1 year sales growth is 8.60%, and 19.1%.

Price to Earnings Ratio (P/E Ratio)
The company's stock P/E is 24.6, which is less than the industry P/E of 30.03.

Earnings Per Share (EPS)
The earnings per share of the company is 18.36.

Book Value
The book value of the stock is 105.

Dividend Yield
The company pays an annual dividend yield of 0.53%.

Return Ratios
The Return On Capital Employed (ROCE) is 25.3%, and the Return On Equity (ROE) is 20.2%.

Debt-to-Equity Ratio
The company's debt-to-equity ratio is 0.18.

Investors

Shareholdings in a Company
The promoters hold 41.30% in the company, FIIs hold 6.16%, DIIs hold 4.14%, and the public holds 48.41%.

Company's latest News

• Heritage Foods Limited, a leading player in India's dairy and FMCG sector, has been in the news recently for several reasons. The company reported a consolidated net profit of ₹40.55 crore for the quarter ended June 2025, marking a decline of 30.6% compared to the same period last year. Despite the profit dip, the company's consolidated net sales rose over 10% year-on-year, reaching approximately ₹1,137 crore. The company attributed its strong revenue growth to increased milk volumes and operational efficiencies, though higher costs impacted net profitability.

• In corporate developments, Heritage Foods scheduled its board meeting for July 17, 2025, to discuss and approve its unaudited financial results for the first quarter of the financial year. The management has engaged actively with analysts and institutional investors, holding several one-on-one and group meetings to discuss its financial performance and future outlook. Heritage Foods also announced an earnings conference call for investors on July 18, 2025.

• In recognition of its positive work environment, Heritage Foods Limited received the esteemed 'AmbitionBox Employee Choice Award 2025' in the Top Rated FMCG Company category, showcasing its commitment to employee satisfaction.

• Stock-wise, Heritage Foods shares have shown significant movement recently, driven partly by political developments, especially the involvement of the company's promoters with the returning Chief Minister of Andhra Pradesh, N. Chandrababu Naidu. This political backdrop has led to higher trading volumes and a notable increase in the company's share price over the past months.

Technical Analysis

Company Chart

Moving Average (MA)

• The stock is trading near the 50-MA, which indicates that there is no clear indication whether the stock will go up or down.

• The stock is trading near the 200-MA, which also indicates that there is no clear indication whether the stock will go up or down.

Relative Strength Index (RSI)

Currently, the RSI of the company is 47, which indicates that the stock is neither in the overbought zone nor in the oversold zone.

My Analysis

Heritage Foods is a large company in India that mainly deals with dairy products like milk, curd, and other related foods. Recently, their sales have increased, showing that more people are buying their products. However, even though sales have gone up, the company’s profit has dropped because their costs have also risen. This means that while the business is growing and reaching more customers, making extra profit has become harder due to higher expenses. The company is also known for treating its workers well and has won awards for being a good place to work. Stock prices have seen some movement because of political connections, which can also affect the company’s future. Overall, Heritage Foods is growing but needs to manage its rising costs better to increase its profits.