During Wednesday’s trading session, the shares of a leading dairy company offering milk and value-added dairy products hit a 5 percent lower circuit to Rs. 592.35 on BSE, despite reporting Q2 FY25 results with net profit growth by nearly 117 percent YoY.
With a market cap of Rs. 5,496.7 crores, the shares of Heritage Foods Limited surged nearly 2.6 percent to hit an intraday high at Rs. 640, compared to its previous closing price of Rs. 623.5.
What’s the news:
The fluctuations in the share prices were observed after Heritage Foods Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Wednesday during market hours.
For Q2 FY25, Heritage Foods reported consolidated revenue from operations of Rs. 1,019.5 crores, reflecting a marginal decline of around 1.3 percent QoQ from Rs. 1,032.7 crores in Q1 FY25, but a growth of about 4.2 percent YoY from Rs. 978.5 crores in Q2 FY24.
The company’s net profit for Q2 FY25 increased to Rs. 48.6 crores, representing a decline of around 17 percent QoQ from Rs. 58.4 crores in Q1 FY25, but a year-on-year increase of nearly 117 percent from Rs. 22.4 crores in Q2 FY24.
Shareholding Pattern:
According to the latest shareholding pattern, the company’s promoter holds a 41.3 percent stake in the company, while FIIs hold 8.27 percent, DIIs hold 3.89 percent, and retail investors hold 46.56 percent.
Heritage Foods Limited was established in 1992 by Nara Chandrababu Naidu, who is currently the Chief Minister of Andhra Pradesh and the president of the Telugu Desam Party (TDP).
Nara Bhuvaneswari, the Vice Chairperson and Managing Director, and the wife of Nara Chandrababu Naidu, holds a 24.37 percent stake in the company, with 22,611,525 equity shares as of September 2024, making her one of the largest individual promoter shareholders.
Nara Lokesh, the son of Nara Chandrababu Naidu, holds 10.82 percent of the company with a total of 1,00,37,453 shares as of September 2024.
Stock Performance:
The stock has delivered multibagger returns of nearly 172.3 percent in one year, and around 81.2 percent of positive returns in the last six months. So far in 2024, the shares of Heritage Foods have given positive returns of about 94.7 percent.
About the company:
Heritage Foods Limited, one of the leading Indian dairy companies, operates through its three business divisions: Dairy, Renewable Energy and Animal Feed Products.
The company is engaged in the business of procurement and processing of Milk & Milk products and also the generation of power through solar & wind for the captive consumption of its dairy plants.
The company’s products include milk and value-added products such as curd, ice cream/frozen dessert, paneer, buttermilk, flavoured milk, lassi, milk powders, and sweets, etc.
Written by Shivani Singh
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