Indian dairy products maker Heritage Foods' Q2 profit surges two-fold

Heritage Foods

23/10/2024 10:35

Oct 23 (Reuters) - Indian dairy products maker Heritage Foods  HEFI.NS  posted a two-fold surge in
second-quarter profit on Wednesday, marking the seventh consecutive quarter of earnings growth, as increased
rural demand boosted sales.
    The company posted a consolidated profit of 486.3 million rupees ($5.8 million) in the three months ended
Sept. 30.
    Its revenue from operations rose 4% to 10.2 billion rupees, while total expenses remained stable.
    For further results highlights, click here.

KEY CONTEXT
    Demand in rural India is swayed by the monsoons, which is a key factor for agricultural output and drives
the purchasing power of rural consumers.
    The September quarter saw stable demand trends for consumer goods, with rural volume growth outperforming
urban demand year-on-year for the third straight quarter.
    Rivals Dodla Dairy  DODL.NS  and Hatsun Agro Products  HAPL.NS  have yet to report their results for the
quarter.
    
PEER COMPARISON
    
    
                                   Estimates     Estimates (next 12        Analysts' sentiment            
                                   (next 12           months)                                         
                                   months)                                                            
                         RIC      PE    EV/EBI   Revenue     Profit    Mean     # of      Stock to      Div
                                         TDA      growth     growth   rating*  analyst     price       yield
                                                                                  s       target**      (%)
   Heritage Foods      HEFI.NS   25.48  12.17     12.96      40.86    Strong      2         1.03        0.40
                                                                        Buy                           
     Dodla Dairy       DODL.NS   29.24  18.38     15.10      25.58      Buy       3         0.91         -
 Hatsun Agro Product   HAPL.NS   58.71  24.16       -        39.92     Hold       2         1.08        0.79
  Parag Milk Foods     PAMF.NS   12.50   8.05       -          -      Strong      1         0.65        0.25
                                                                        Buy                           
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
JULY-SEPTEMBER STOCK PERFORMANCE
    
  
  
    
-- All data from LSEG
-- $1 = 84.0725 Indian rupees


($1 = 84.0700 Indian rupees)

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 (Reporting by Ashna Teresa Britto; Editing by Sumana Nandy)
 ((AshnaTeresa.Britto@thomsonreuters.com;))