India's Heritage Foods profit rises more than three-fold on strong summer demand

Hatsun Agro Product

23/07/2024 10:25

BENGALURU, July 23 (Reuters) - India's Heritage Foods  HEFI.NS  reported a more than three-fold jump in quarterly
profit on Tuesday, as scorching summer boosted demand for ice creams and milkshakes.
    The dairy producer said its consolidated profit rose 249% to 584.3 million rupees ($6.98 million) in the three months
to June 30, marking the sixth consecutive quarter of growth.
    Revenue from operations rose 11% to 10.33 billion rupees.
    For further results highlights, click here.
    
    KEY CONTEXT
    Unprecedented heat during the June quarter lifted demand for ice creams, lassi, buttermilk and flavored milk,
benefiting dairy producers such as Heritage Foods.
    Also, rising incomes mainly in urban India and preference for healthier options drove demand for branded dairy
products.
    Earlier this month, peers Dodla Dairy  DODL.NS  and Hatsun Agro Products  HAPL.NS  had reported 85% and 63% gains in
quarterly profits, respectively.
    
    PEER COMPARISON

                                   Valuation (next   Estimates (next 12 months)     Analysts' sentiment
                                   12 months)                                       
                          RIC      PE     EV/EBITDA  Revenue         Profit         Mean rating*   # of        Stock to
                                                     growth(%)       growth(%)                     analysts*   price
                                                                                                               target**
 Heritage Foods Ltd       HEFI.NS  32.00  17.88      12.27           37.99          Strong Buy     3           1.27
 Dodla Dairy Ltd          DODL.NS  30.91  19.36      15.69           27.28          Strong Buy     4           0.99
 Hatsun Agro Product Ltd  HAPL.NS  66.48  26.20      13.99           37.71          Hold           2           1.14
 Parag Milk Foods Ltd     PAMF.NS  13.64  8.47       17.20           NULL           Strong Buy     1           0.66
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
    APRIL-JUNE STOCK PERFORMANCE
  
 
    -- All data from LSEG


($1 = 83.6720 Indian rupees)

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Heritage Foods    https://tmsnrt.rs/4dcOhHi
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 (Reporting by Aleef Jahan, Ashna Teresa Britto; Editing by Subhranshu Sahu)
 ((aleefjahan.cs@thomsonreuters.com))