Heritage Foods was listed on the NSE on November 27, 1996. In the last five years, the company has given a massive return of more than 210% to its investors. Will Heritage Foods continue to provide such great returns in the future as well? Let’s explore Heritage Foods’ growth potential and Heritage Foods share price target from 2025 to 2050 in this article.
About Heritage Foods
Heritage Foods is an Indian company founded in 1992 by N. Chandrababu Naidu. The company is in the dairy products, cattle feed, and renewable energy business. The company primarily produces milk, curds, butter, ghee, and other dairy products. Heritage Foods has expanded over the years and now sells its products in many states across India. It is known for providing its customers with fresh, high-quality dairy products. The company also promotes sustainability by investing in renewable energy sources such as solar and wind power.
Heritage Foods Business Model
- Milk Sales: Heritage Foods generates revenue by selling milk directly to customers through its retail stores and online platforms.
- Dairy Products: The company turns milk into more profitable products such as curd, butter, ghee, and paneer.
- Retail stores: Heritage Foods operates retail stores that sell dairy and other food products, which boosts its direct sales revenue.
- Institutional Sales: The company provides milk and dairy products in bulk to hotels, restaurants, and other businesses, ensuring consistent sales.
- Exports: Heritage Foods exports dairy products to other countries, increasing revenue from international customers.
- Agri Business: The company manufactures and sells cattle feed to dairy farmers, generating revenue while promoting milk production.
- Franchise Model: Heritage Foods allows franchisees to open stores under its brand, generating revenue through franchise fees and product sales.
- E-commerce: Customers can purchase milk and dairy products online, creating a convenient sales channel and increasing revenue.
- Renewable Energy: Heritage Foods invests in renewable energy projects such as solar and wind power to reduce costs and generate revenue.
Heritage Foods Fundamental Analysis
| Stock Name | Heritage Foods Ltd. |
|---|---|
| NSE Symbol | HERITGFOOD |
| Market Cap | ₹ 3,519 Cr. |
| 52W High | ₹ 728 |
| 52W Low | ₹ 345 |
| Stock P/E | 18.5 |
| Book Value | ₹ 96.1 |
| Dividend Yield | 0.66 % |
| ROCE | 16.2 % |
| ROE | 13.3 % |
| Face Value | ₹ 5.00 |
| Industry PE | 29.3 |
| Price to book value | 3.95 |
| Debt to equity | 0.16 |
| PEG Ratio | 4.31 |
| Quick ratio | 1.37 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 41.57% | 41.30% | 41.30% |
| FIIs | 1.98% | 2.01% | 6.42% |
| DIIs | 15.90% | 11.74% | 4.05% |
| Public | 40.55% | 44.96% | 48.23% |
| No. of Shareholders | 43,315 | 56,225 | 1,35,660 |
Key Factors Driving Heritage Foods Future Growth
- Rising Income Levels: As people’s incomes rise, they are more willing to spend on Heritage Foods’ premium dairy products.
- Growth in Online Sales: As more people shop for groceries online, Heritage Foods is expanding its digital presence.
- Sustainable and Ethical Practices:Heritage Foods focusses on environmentally friendly and ethical farming practices, which appeal to health-conscious and responsible consumers.
- Expansion into New Markets: Heritage Foods is expanding into new states and regions, which helps to increase sales.
- Government Support for Dairy Industry: Government Support for the Dairy Industry: Government policies and subsidies for dairy farming benefit and help Heritage Foods grow.
- Strong Supply Chain Management: Heritage Foods guarantees fresh and timely delivery of its products, keeping customers happy.
- Strategic partnerships and acquisitions: Heritage Foods is collaborating with other businesses to expand and improve its offerings.
- Rising Awareness of Protein-Rich Diets: More people now prefer dairy for nutrition, resulting in increased demand for Heritage Foods products.
- Effective Marketing and Advertising: Heritage Foods promotes its products effectively via television, social media, and other channels, raising brand awareness.
- Investment in Technology: Heritage Foods invests in modern technology to improve milk processing, packaging, and storage, resulting in higher quality.
Pros of Heritage Foods
- Low PE Ratio Compared to Peers: Heritage Foods has a PE ratio of 19.0, which is lower than the industry average of 30.1, making it relatively undervalued compared to its earnings.
- Low Debt Levels: With a low debt-to-equity ratio of 0.16, Heritage Foods has a minimum dependency on debt, reducing financial risk and interest expenses.
- Increase in DIIs Holding: DIIs holding increased from 3.89% in September 2024 to 3.98% in December 2024, showing a positive outlook towards Heritage Foods by the DIIs.
- Low PE Ratio Compared to Peers: Heritage Foods PE ratio is 18.5, which is lower than the industry average of 29.3, making it relatively undervalued and potentially a good investment opportunity.
- Low Debt Levels: Heritage Foods debt to equity ratio is 0.16, which indicates that the company is less dependent on debt, which reduces its financial risk.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 4.05% in March 2025 from 3.98% in December 2024, which indicates growing confidence in the Heritage Foods future potential by the DIIs.
Cons of Heritage Foods
- Decreasing Profits – Heritage Foods profits are decreasing at a CAGR of 12%. over the last three Years.
- High Price to Book Value: Heritage Foods is trading at a Price-to-Book Value (P/B) ratio of 4.22, which indicates that its stock is significantly overvalued compared to its book value.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 6.65% in December 2024 from 8.27% in September 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
- Poor Profit Growth – Heritage Foods profit has grown at a CAGR of just 4% over the last five years, showing weak earnings growth over time.
- Low Return on Equity (ROE): Heritage Foods 5-year average ROE is 7.50%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- High Price to Book Value: Heritage Foods is trading at a Price-to-Book Value (P/B) ratio of 3.95, which indicates that its stock is significantly overvalued compared to its book value.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 6.42% in March 2025 from 6.65% in December 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
Heritage Foods Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 46 | 46 | 46 |
| Reserves | 679 | 762 | 845 |
| Borrowings | 168 | 132 | 143 |
| Other Liabilities | 231 | 341 | 354 |
| Total Liabilities | 1,125 | 1,281 | 1,389 |
| Fixed Assets | 622 | 704 | 719 |
| CWIP | 20 | 20 | 16 |
| Investments | 15 | 140 | 303 |
| Other Assets | 469 | 416 | 351 |
| Total Assets | 1,125 | 1,281 | 1,389 |
By the end of 2025, the Heritage Foods share price is expected to be around ₹510 in normal conditions. In a bear market, it might be ₹470, and in a bull market, it may go up to ₹590.
| Heritage Foods Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 470 |
| 2nd Target | 510 |
| 3rd Target | 590 |
In 2026, the Heritage Foods share price is expected to be around ₹600 in a normal situation. In a bear market, it might be ₹570, and in a bull market, it may cross ₹770.
| Heritage Foods Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 570 |
| 2nd Target | 600 |
| 3rd Target | 770 |
According to our analysis, the Heritage Foods share price is expected to be around ₹750 in 2027. In a bear market, it might be ₹680, and in a bull market, it may cross ₹1000.
| Heritage Foods Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 680 |
| 2nd Target | 750 |
| 3rd Target | 1000 |
According to our analysis, the Heritage Foods share price may trade near ₹950 by 2028; bearish conditions could pull it down to ₹800, while a strong bull run might lift it to ₹1300.
| Heritage Foods Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 800 |
| 2nd Target | 950 |
| 3rd Target | 1300 |
In a normal situation, the Heritage Foods share price is projected to be approximately ₹1300 in 2029. In a bear market, the value may be as low as ₹1000, while in a bull market, it may rise to ₹1700.
| Heritage Foods Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 1000 |
| 2nd Target | 1300 |
| 3rd Target | 1700 |
In a normal situation, the Heritage Foods share price is projected to be approximately ₹1600 in 2030. In a bear market, the value may be as low as ₹1200, while in a bull market, it may rise to ₹2200.
| Heritage Foods Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 1200 |
| 2nd Target | 1600 |
| 3rd Target | 2200 |
By 2035, the Heritage Foods share price is projected to be around ₹3000 under normal conditions. In adverse markets, the price could fall to ₹2400, while favorable conditions might push it up to ₹6600.
| Heritage Foods Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 2400 |
| 2nd Target | 3000 |
| 3rd Target | 6600 |
Under normal conditions, the Heritage Foods share price might hit ₹9500 by 2040. A bearish trend could lower it to ₹4800, whereas a bullish surge could raise it to ₹19,600.
| Heritage Foods Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 4800 |
| 2nd Target | 9500 |
| 3rd Target | 19,600 |
In 2050, the Heritage Foods share price is expected to be around ₹55,000 in a normal situation. In a bear market, it might be ₹19,000, and in a bull market, it may go up to ₹1,17,800.
| Heritage Foods Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 19,000 |
| 2nd Target | 55,000 |
| 3rd Target | 1,17,800 |
| Years | Target Price |
|---|---|
| Heritage Foods Share Price Target 2025 | ₹470 to ₹590 |
| Heritage Foods Share Price Target 2026 | ₹570 to ₹770 |
| Heritage Foods Share Price Target 2027 | ₹680 to ₹1000 |
| Heritage Foods Share Price Target 2028 | ₹800 to ₹1300 |
| Heritage Foods Share Price Target 2029 | ₹1000 to ₹1700 |
| Heritage Foods Share Price Target 2030 | ₹1200 to ₹2200 |
| Heritage Foods Share Price Target 2035 | ₹2400 to ₹6600 |
| Heritage Foods Share Price Target 2040 | ₹4800 to ₹19,600 |
| Heritage Foods Share Price Target 2050 | ₹19,000 to ₹1,17,800 |
Conclusion
Heritage Foods has demonstrated strong growth over the years, supported by its diversified business model, expanding market presence, and focus on sustainability. While the company has provided impressive returns in the past, its future performance will depend on factors such as rising consumer demand, technological advancements, and government support for the dairy industry. Despite challenges like declining profits and a high valuation, Heritage Foods’ expansion into new markets, investments in renewable energy, and strategic partnerships position it for long-term growth. For the latest updates, you can visit HERITAGE FOODS official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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