Name: Latest research reports of Heritage Foods Ltd. authored by ICICI Securities Limited and published by - Trendlyne research reports.
Item: Heritage Foods Ltd.
Rating: 5
Author: ICICI Securities Limited

EBITDA margin impacted by rising milk procurement prices

Buy: Heritage Foods Ltd.

ICICI Securities Limited

Takeaways from Q4FY22 and the company's management call: (1) Revenue grew 12.4% YoY driven by strong volume growth in dairy segment, (2) gross margin declined 304bps YoY due to higher milk procurement prices but limited price hikes, and (3) steady launch of new products continued during the quarter. Steady value migration from co-operatives and unorganized players to private players is likely to benefit Heritage.