Buy Heritage Foods; target of Rs 795: KR Choksey

KR Choksey's research report on Heritage Foods

Heritage foods Ltd posted net revenue of INR 5.6 Bn (+13.7% YoY), mainly due better performance by value added products. During FY18 net revenue stood at INR 23.7 Bn (+25.3% YoY). EBITDA for Q4FY18 was at INR 443.4 Mn (+49% YoY), with OPM at 7.9% (+188 bps YoY), mainly due to better product mix and better realization. During FY18 EBITDA stood at INR 1.3 Bn (-10.9% YoY), with OPM at 5.5% (-223 bps YoY). Adjusted PAT for Q4FY18 stood at INR 199.6 Mn (+76% YoY), with NPM at 3.6% (+126 bps YoY). Adjusted PAT for FY18 548.5 Mn (-34% YoY), with NPM at 2.3% (-209 bps YoY).

Outlook
At CMP of INR 685, we recommend a “BUY” rating on the stock with target price of INR 795 and upside of 16.2%. For all recommendations report, click here

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