Shares of one of India’s leading dairy firms surged by 30% in the last two trading sessions, reaching a 52-week high price of ₹545 per share. After Chandrababu Naidu’s party, the Telugu Desam Party (TDP), secured a notable number of seats in the 2024 Lok Sabha election.
Heritage Foods is India’s one of the leading integrated Dairy companies. Heritage Foods is engaged in the business of procurement and processing of Milk & Milk products and also 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
Heritage Foods Ltd boasts an array of products marketed under its prominent brands like Heritage Gold Milk, Heritage Super Gold Milk, Heritage Full Cream Milk, Heritage Golden Cow Milk, and more.
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.
The company has established a robust distribution network spanning 12 states in India, comprising over 6000 milk and fresh product distributors, 237 Happiness Points, 300+ value-added product distributors, and 850+ parlours. These channels collectively reach nearly 180,000 retail outlets, including general trade outlets, and maintain a strong presence in national modern trade and E-commerce retail.
Heritage Foods Ltd., categorized as a small-cap stock, holds a market capitalization of ₹4,982 crores. As of Wednesday, the company’s shares were trading at ₹537 per share, reflecting a remarkable increase of 17.81 percent on the stock exchange.
Over the past six and 12 months, shares of Heritage Foods Ltd have yielded multibagger returns of 125% and 165%, respectively.
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.
Milk sales volumes continued steady growth in Q4, rising by 3.74% year-on-year to 1.11 million litres per day. The average milk sales price also increased to Rs. 54.84 per litre, up by +1.78% year-on-year.
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%.
Nara Bhuvaneswari, Vice Chairperson & Managing Director, is the wife of Nara Chandrababu Naidu, and holds a 24.37% stake in the company, with 22,611,525 shares as of March 31, 2024. This makes her one of the largest individual promoter shareholders.
Nara Lokesh, the son of Nara Chandrababu Naidu, holds 10,037,453 shares in the company as of March 31, 2024, amounting to a 10.82% stake.
Written by Omkar Chitnis
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