Buy Heritage Foods, target Rs 660: ICICI Securities
ICICI Securities has a buy call on Heritage Foods Ltd. with a target price of Rs 660. The current market price of Heritage Foods Ltd. is Rs 583.1 Time period given by the brokerage is a year when Heritage Foods Ltd. price can reach the defined target.
Heritage Foods Ltd., incorporated in 1992, is a midcap company with a market cap of Rs 2834.22 crore.
Investment rationale by ICICI Securities
We came back positive after meeting management of Heritage Foods. The company’s all the initiatives such as 1) yoghurt plant, 2) Alpenvie premium ice creams and 3) animal feed business are on track. With fall in milk prices, we expect the company to report better margins in FY19. We expect Heritage to report revenue and PAT CAGR of 17.6% and 58.8% over FY18-20 with adjusted RoCE above cost of capital and retain BUY rating with target price of Rs860 (29x FY20E).
Heritage Foods Ltd., incorporated in 1992, is a midcap company with a market cap of Rs 2834.22 crore.
Investment rationale by ICICI Securities
We came back positive after meeting management of Heritage Foods. The company’s all the initiatives such as 1) yoghurt plant, 2) Alpenvie premium ice creams and 3) animal feed business are on track. With fall in milk prices, we expect the company to report better margins in FY19. We expect Heritage to report revenue and PAT CAGR of 17.6% and 58.8% over FY18-20 with adjusted RoCE above cost of capital and retain BUY rating with target price of Rs860 (29x FY20E).
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