Shares of one of India’s leading dairy firms surged 10% reaching a 52-week high price of ₹727.90 per share after ₹319 crore worth of shares changed hands via a block deal on Monday’s early trade.
At 11:15 a.m., Heritage Foods Ltd shares were trading at ₹ 706.25 per share on the National Stock Exchange, up 6.72 percent from the previous close price. The company has a market valuation of ₹6,560 crore.
According to reports, 4.8% of Heritage Foods Ltd’s equity, equivalent to 44 lakh shares, changed hands via a block deal. The transaction amounted to ₹319.6 crore at an average price of ₹725 per share. The identities of both buyers and sellers remain unknown.
Heritage Foods 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, flavored milk, lassi, milk powders, and sweets, etc
The company operates 18 state-of-the-art milk processing facilities, collectively capable of processing 2.78 million litres per day (MLPD). Additionally, it manages 203 chilling units with a chilling capacity of 2.36 MLPD.
In terms of revenue, there was a 17 percent year-on-year growth, with revenue increasing from ₹3,241 crore in FY22-23 to ₹3,794 crore in FY23-24. Similarly, the net profit surged by 84 percent during this period, rising from ₹58 crore to ₹107 crore.
The company’s average milk procurement for Q4-FY24 stood at 1.59 million litres per day, marking an 11.32% year-on-year increase. Conversely, the average milk procurement prices for Q4-FY24 dropped to Rs. 41.70 per litre, down by -7.70% year-on-year.
Over the past six and 12 months, shares of Heritage Foods Ltd have yielded multibagger returns of 195% and 234%, respectively.
Heritage Foods Ltd was founded in 1992 by Nara Chandrababu Naidu, the former Chief Minister of Andhra Pradesh and the current president of the Telugu Desam Party (TDP).
According to the recent shareholding pattern, the company’s promoter holds a 41.30% stake in the company, while FIIs hold 2.01%, DIIs hold 11.74%, and retail investors hold 44.96%.
Written by Omkar Chitnis
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