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Heritage Foods Stock Analysis

Heritage Foods Overview

The Heritage Foods is Public Listed Companies. It is based in Andhra Pradesh. It has two business verticals mainly and one subsidiary. The two business verticals are

It has one subsidiary Heritage Nutrivet Limited. It deals with Animal Nutrition. It is one of the leading Cattle Feed players in South and Western India covering over 3 lakh farmers spread across five states viz., Andhra Pradesh, Telangana, Tamilnadu, Karnataka and Maharastra.

The milk products like Ghee, Butter and Milk powder is also exported to foreign countries in Europe, Gulf and South Eastern countries.The company may be based in Andhra Pradesh but it supplies to different states like Telangana, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi,Haryana, Rajasthan, Madhya Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand.

Now that you have good idea about the products and presence of the Company it is time to see returns this company has given to investors in past.

Heritage Foods Stock Performance

Below graph shows the stock price performance of Heritage Foods over the years. I have taken longer time frame to eliminate any seasonal fluctuations in price.

Heritage Foods Share Price Performance 2018
Heritage Foods Share Price Performance 2018

Heritage Foods have given stellar returns to investors over a period of time.At year 2002 the company was trading below 5 mark. It had pronounced movement after year 2015. In short span of 2 years it moved from 200 to 800.

Before 2015 it has constant increase in price and only slump period was after 2008 crisis which is common for almost all stocks. It took 3 years to recover from that slump period and after year 2012 it has spiked up.

If you have invested money in this company then over a period of 16 years you have made good money. The dividend also added up to the money earned. So it is good company for investors in past.

Heritage Foods My Opinion

Heritage Foods is in portfolio of Vijay Kedia.He is known for identifying Multi Baggers. This company is already a multi bagger. The comfort of knowing the fact that one ace investor has invested in this company makes it something special.

Milk and Milk Products sector will perform well in future as well. With growth in Indian Economy people will spend money in organized players for their Milk demand. The unorganized players will have difficulty to reach Urban players and will soon give market share to Organized packet players.

This shift will help companies operating in this segment. Currently the unorganized players provide Milk to most households. The gradual shift will benefit the companies. Demand of Milk Products in other countries will get benefited with INR depreciation.

Conclusion

The sector is good and you can evaluate other companies present in this sector before making a decision. However with ever increasing news of chemical milk is also forcing consumers to go for local Milk man.