• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Wednesday, August 17, 2022
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

Heritage Foods rating: FY22 EPS likely to go up by 6.5%; ‘Buy’ retained with TP of Rs 400

by The Outlooker Web Desk
December 14, 2020
in Business
0
Heritage Foods rating: FY22 EPS likely to go up by 6.5%; ‘Buy’ retained with TP of Rs 400
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

With stake sale in Future Retail as well as debt repayment, the company’s focus and investments in dairy business are likely to increase.

Heritage Foods has sold its entire stake in Future Retail (17.85mn shares) for Rs 1,319 mn, at an average price of Rs 74/share. We believe the transaction will be DCF-accretive as Heritage can deploy the funds in dairy business, which earns RoE in excess of 25%. The company plans to repay its term loans with the proceeds, and will be net-cash by the end of FY21. We believe this transaction will boost FY22e earnings by ~Rs 100 mn (6.5% increase in EPS). With stake sale in Future Retail and repayment of debt, the company can invest more resources and bandwidth in its core dairy business. We model Heritage to report PAT CAGR of 63% over FY20-FY22 with improvement in core return ratios. Maintain Buy with a DCF based target price of Rs 400 (12x FY22e).

Focus on dairy business: With stake sale in Future Retail as well as debt repayment, the company’s focus and investments in dairy business are likely to increase. We also believe the company can either expand geographically or increase its dividend payouts.

Sales value lower than losses incurred: Heritage’s Retail, Agri and Bakery segments had incurred cumulative losses (Ebit) of Rs 2,960 mn over FY07-17 and it has received consideration of Rs 1,319 mn in FY21. We have not considered any time-value impact.

Retain Buy: We model Heritage to report revenue and PAT CAGRs of 4.8% and 63%, respectively, over FY20-FY22. Core return ratios are expected to improve over the same timeframe. We have valued the stock as per DCF methodology at Rs 400 (implied PE 12x FY22e). Risk: Prolonged economic slow-down in South India.

 

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

The Outlooker is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
HDFC Bank rating: RBI curbs to have a limited impact; ‘Buy’ retained

HDFC Bank rating: RBI curbs to have a limited impact; ‘Buy’ retained

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

After Minister’s Tweet, Centre Says No Flats For Rohingya In Delhi
National

After Minister’s Tweet, Centre Says No Flats For Rohingya In Delhi

August 17, 2022
4 Noida Execs Dead As Heavily-Loaded Truck Overturns On Car Near Gurgaon
National

4 Noida Execs Dead As Heavily-Loaded Truck Overturns On Car Near Gurgaon

August 17, 2022
Jaipur Man Accuses Business Partner Of Raping, Killing His Wife: Police
National

6-Year-Old Girl Raped, Murdered In Haryana’s Panipat, Accused Arrested: Cops

August 17, 2022
Telangana’s K Chandrashekar Rao Slams PM Modi For “Delivering Dialogues” In I-Day Speech
National

Telangana’s K Chandrashekar Rao Slams PM Modi For “Delivering Dialogues” In I-Day Speech

August 16, 2022

Connect with us

No Result
View All Result

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Movie
  • Music
  • National
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • After Minister’s Tweet, Centre Says No Flats For Rohingya In Delhi
  • 4 Noida Execs Dead As Heavily-Loaded Truck Overturns On Car Near Gurgaon
  • 6-Year-Old Girl Raped, Murdered In Haryana’s Panipat, Accused Arrested: Cops

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.