Heritage Foods Ltd Initiating Coverage Report By Ventura

We believe that Heritage offers a compelling opportunity to invest in the fast growing domestic consumption story. At 10.6X FY18 earnings coupled with the strong growth outlook, we believe that the valuations are extremely attractive, considering the heady valuation of its peers and the other consumption stocks.

The strong outlook of the dairy sector, expanding geographical footprint, increasing share of the high margin value added dairy business and expected faster turnaround of its retail business operations should sustain the heady growth rates and profitability.

We expect revenues to grow at a CAGR of 17.1% to 3.328 cr by FY18, while earnings are expected to grow at a faster clip (58.5% CAGR) to 113 cr over the same period.

Ventura-Initiating-coverage-on-Heritage