Heritage Foods - Why is it such a fancied stock?

Kya shaktiji, itna lamba chouda thread hai ye aur aap ab be sure nahin ho? Actually ek secret bataon... Mein bhi sure nahin hoon. So the best thing to do is skip this and look at other avenues. Never invest into what you dont understand.

 

I am not buying but I always like to look for stocks to keep in the radar. Right now stocks that I buy on dips are Shilpa Medicare, Granules India, Kitex Garments, IDFC Bank, Camlin Fine Sciences. But there is no harm in constantly evaluating stocks.

 

FMCG sector is always a buy,you must have 10% to 15% of portfolio in FMCG .I have Asian paints, HUL,ITC in portfolio ,as I am comfortable with market leaders with consistant and sure returns as basket.Enjoy public spending .

 

100% agreed. FMCG is the place to park atleast 10-15% of your money for the long term. It is a secular growth sector

 

sir how long you have been holding Asian paints, HUL,ITC?

 

is their any small cap ideas or mid cap other than these biggies in fmcg? anyone.

 

Surely the 'knowledgeable' members in here will suggest many names.

Given that RJ is revered by almost all in here.......

On mid and small caps :

Rakesh Jhunjhunwala: Well, I do not see some great midcaps. The largecaps will ultimately give you better percentage returns, may be with less excitement. It is not that domestic investors are not buying largecaps. I think I would be careful in buying some of the smallcaps, because the market is extrapolating one quarter into many years and there is a lot of excitement in the midcaps. Be careful.

Wont be suprised if you are guided otherwise

 

FCEL is the most promising FMCG story for the long term besides Heritage.

 

I am holding ITC since aprox one decade and has made money.But entered in Asian paints and HUL when these were at around or below 450- 500 as ITC was expected to slow down,may be two three years back if I remember rightly .I expect pack to give 15% return in long-term with sound sleep.

 

I will go with your opinion.In my view if we aspire for better than market returns then investment has to be made at the opportune time when risk( market risk in case of recognised fmcg player) reward ratio is favourable.I AM OF THE OPINION AT THE PRESENT LEVEL MOST OF THE GOOD FMCG PLAYER ( IN NORMAL CONDITION) WILL GIVE ONLY MARKET RETURNS.

 

I may be wrong but I find the management is not dependable ; not steady with their stated plan. Members opinion is requested for on this count.

 

You may pl. dwell on one reported blot on the company. Quite some time back land bank of the co. Worth rs. 50 crore was sold to an entity by name Sri Chakra merchandising Ltd., at a price of rs. 20 cr. Very soon the land parcel was sold off by Sri Chakra at a hefty premiu. This piece of information is reported in the rival political party news paper. Have to confirm on the factual position.

 

Thank you. Could you share more details on this?

 

Can you give link?

 

Now Godrej also want to be big player in dairy biz. Tough competition for Heritage.

https://www.moneycontrol.com/news/b...godrej_4682501.html?google_editors_picks=true

 

I had already anticipated Godrej entry ,pl read my post above.

 

Good report it also shows that business potential is large. Adi Godrej says as follows:

The business is doing well and we think there is tremendous scope of growth. The value added milk business is growing very rapidly in our country

It is difficult to tell at this point of time but I think the growth will be quite considerable.

This means that market size is large and will get developed. One point is that sometimes the entry of a big player shakes market and creates demand for small players also. E.g. if Godrej does big advt of ice cream and creates demand for ice cream among public even other business houses will also get some benefit of demand. So I think it has to be viewed in positive light that big player also sees potential for growth and will create demand for value products which is presently low.

 

good strategy sir. also risk free returns. happy to hear one investor of this forum holding onto one stock for a decade. traits of a genuine investor.

 

Keeping in view ,Godrej's strategy in FMCG sector,he will go for inorganic growth also, meaning acquisition of small players.

 

Here is one of the links.

https://www.thehindu.com/todays-pap...s-in-eye-of-political-storm/article385091.ece