Getty ImagesEdelweiss has given a buy rating to Heritage Foods with a target price of Rs 456. The share price moved up by 5.57 per cent from its previous close of Rs 334.10. The stock’s last traded price is Rs 352.70.
Heritage Foods Ltd., incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 1547.84 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 638.91 Crore, down 2.10 % from last quarter Sales of Rs 652.65 Crore and down -11.42 % from last year same quarter Sales of Rs 721.24 Crore Company has reported net profit after tax of Rs 95.64 Crore in latest quarter.
Investment Rationale
HFL is well placed underpinned by B2C nature of its business (~90%), strong return ratios. In light of its improving procurement, the brokerage expects strong 26% EBIDTA CAGR over FY20–22E. It has maintained ‘BUY’ with a revised SoTP-based TP of INR456 (18x FY22E core EPS plus 30% discount to market value of its Future Retail stake).
Promoter/FII Holdings
Promoters held 39.9 per cent stake in the company as of June 30, 2020, while FIIs held 5.1 per cent, DIIs 13.9 per cent and public and others 41.1 per cent.
Heritage Foods Ltd., incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 1547.84 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 638.91 Crore, down 2.10 % from last quarter Sales of Rs 652.65 Crore and down -11.42 % from last year same quarter Sales of Rs 721.24 Crore Company has reported net profit after tax of Rs 95.64 Crore in latest quarter.
Investment Rationale
HFL is well placed underpinned by B2C nature of its business (~90%), strong return ratios. In light of its improving procurement, the brokerage expects strong 26% EBIDTA CAGR over FY20–22E. It has maintained ‘BUY’ with a revised SoTP-based TP of INR456 (18x FY22E core EPS plus 30% discount to market value of its Future Retail stake).
Promoter/FII Holdings
Promoters held 39.9 per cent stake in the company as of June 30, 2020, while FIIs held 5.1 per cent, DIIs 13.9 per cent and public and others 41.1 per cent.