Heritage Foods Ltd.

NSE: HERITGFOOD | BSE: 519552 | ISIN: INE978A01027 | Industry: Packaged Foods
| Value Stock, Under Radar
390.7000 7.50 (1.96%)
NSE Mar 19, 2025 15:31 PM
Volume: 485.0K
 

390.70
1.96%
Emkay
VADP drives revenue growth: Heritage's consolidated revenue grew by 14%, 7% below our estimate. The Dairy business grew by 14% on the back of 17% growth in VADP (22% of the Dairy business). In VADP, the Curd business (82% of the VADP business) grew by 21% to Rs1bn. The Liquid Milk business (78% of the Dairy business) grew by 14%, largely driven by the Reliance Dairy acquisition. We believe that Heritage's organic growth (exReliance Dairy) grew by ~5%. Milk procurement increased by 24% to 13.2 llpd due to inorganic growth. The management continues to focus on VADP and aspires to increase its contribution to 40% (from 22% in FY18) by 2022E. Improving operational efficiency of Reliance Dairy drives margins: Gross margin...
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