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Heritage Foods Limited (HERITGFOOD) Fair Value & Analysis

Consumer Defensive · IN · Market cap ₹31.1B

HF Heritage Foods Limited HERITGFOOD · NSE
Price₹363.65
Fair Value₹283.31
Upside-22.1%
Quality48/100
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Expensive Growth
Thin margins · 3.3% net margin
Low debt · negative free cash flow
0.75% dividend yield
Trails peers (4/13)
Narrow moat 37/100
Evidence: High Range ₹198.32 – ₹368.31 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 4 days ago

Share price +9.8% over the past month.

Below-average quality, and screening another 22% overvalued on our models.

What matters now

  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹198.32 to ₹368.31) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹688.28 ₹125.07 Fair Value ₹283.31 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹125.07 – ₹688.28 · fair‑value band ₹198.32 – ₹368.31 · the ₹363.65 price screens above the ₹283.31 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Heritage Foods Limited (HERITGFOOD) currently trades at ₹363.65, while our model-based Fair Value estimate is ₹283.31, implying the stock looks roughly 22.1% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Heritage Foods Limited generated revenue of ₹45.3B at a net margin of 3.3%. Revenue grew 10.4% year over year. It earns a return on equity of 14.4%. Net debt stands at ₹2.9B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹198.32 (bear case) to ₹368.31 (bull case); at ₹363.65, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -14% fair-value upside, at -22%, HERITGFOOD screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹114.68 ₹146.47 ₹391.37 76
ROIC Compounder ₹122.55 ₹168.17 ₹230.06 72
Gordon GGM ₹22.95 ₹47.73 ₹75.71 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹110.02 ₹459.09 ₹626.04 54
Lynch FV ₹116.20 ₹166.00 ₹215.80 50
PEG = 1.0 ₹116.20 ₹166.00 ₹215.80 46
EPV ₹121.38 ₹144.35 ₹164.45 59
Dividend Discount
Gordon GGM ₹22.95 ₹47.73 ₹75.71 70
DDM Multi-Stage ₹22.95 ₹40.24 ₹50.09 61
Multiples
P/E Multiple ₹254.82 ₹339.77 ₹424.71 63
P/S Multiple ₹206.29 ₹275.05 ₹343.81 58
P/B Multiple ₹206.29 ₹275.05 ₹343.81 55
EV/EBIT ₹238.12 ₹322.98 ₹407.84 53
EV/EBITDA ₹263.31 ₹356.56 ₹449.82 54
EV/Revenue ₹165.24 ₹243.11 ₹320.98 43
Asset-Based
NCAV (Graham) ₹59.45 ₹79.66 ₹118.90 50
Economic Profit
Residual Income ₹114.68 ₹146.47 ₹391.37 76
ROIC Compounder ₹122.55 ₹168.17 ₹230.06 72
Growth Earnings
Growth-Adj P/E ₹198.32 ₹283.31 ₹368.31 68

Widest divergence: Growth Earnings (₹283.31) versus Dividend Discount (₹40.24). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹45.3B
Revenue growth (YoY) +10.4%
Net margin 3.3%
Return on equity 14.4%
Free cash flow −₹1.6B FY2026
P/E ratio 22.4
More key figures
Operating margin 2.7%
EPS (TTM) ₹16.23
Dividend yield 0.8%
EPS growth (YoY) -36.7%
Net debt ₹2.9B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 50 · Market factors (momentum, volatility) 44

Profitability 58
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Heritage Foods Limited procures and processes milk and milk products in India. The company operates through Dairy, Renewable Energy, and Feed segments.

Full company description

Heritage Foods Limited procures and processes milk and milk products in India. The company operates through Dairy, Renewable Energy, and Feed segments. It offers milk, curd, butter milk, lassi, ice cream, frozen desserts, milkshakes, paneer, ghee, butter, cheese, fresh cream, cold coffee, cooking butter, milk powder, flavored milk, UHT milk, dairy whitener products, and other dairy drinkables and sweets; and operates and franchises Heritage Parlour outlets, as well as exports dairy products. The company also produces power through solar and wind power plants. In addition, it provides cattle feed, feed supplements, veterinary medicines, and fish feed. The company was incorporated in 1992 and is headquartered in Hyderabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Heritage Foods Limited reported revenue of ₹45.3B in FY2026 versus ₹26.8B in FY2022, a compound +14.0%/yr. Reported net income was ₹1.5B in FY2026, compounding +11.7%/yr from FY2022.

Growth Quality 61/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹45.3B
Latest YoY
+9.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.9%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.7%
Revenue +14.0%/yr
FY22 ₹26.8B
FY23 ₹32.4B
FY24 ₹37.9B
FY25 ₹41.3B
FY26 ₹45.3B
Net income +11.7%/yr
FY22 ₹966M
FY23 ₹580M
FY24 ₹1.1B
FY25 ₹1.9B
FY26 ₹1.5B
Character of growth · EPS growth decomposed (2015-2026) +12.7 % p.a.
Revenue per share +6.4 pp

of which total revenue +6.4 pp · buybacks/dilution +0.0 pp

EBIT margin +2.8 pp
Tax rate +1.0 pp
Residual (interest, one-offs) +2.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

HERITGFOOD screens 22% overvalued. Compare with Nestlé India Limited →

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Cite: Fair Value Calculator (2026). "Heritage Foods Limited Fair Value". https://www.fairvalue-calculator.com/stock/HERITGFOOD

Peer Group

Packaged Foods · 651 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −22% · Below median
Return on equity (TTM) 14% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 3% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 10% · Above median
Dividend yield (TTM) 0.8% · Bottom 25%
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 22.4× · Pricier than median
P/B 2.81× · Pricier than 75% of peers
P/S (TTM) 0.69× · Cheaper than median
EV/EBITDA 12.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 4 · sector 25
FUTURE 52 · sector 20
PAST 58 · sector 28
HEALTH 90 · sector 96
DIVIDEND 15 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,507 ₹362.37 -76%
Britannia Industries Limited BRITANNIA ₹5,646 ₹1,870 -67%
Tata Consumer Products Limited TATACONSUM ₹1,062 ₹327.27 -69%
PT Indofood CBP Sukses Makmur Tbk ICBP 7,550 IDR 12,864 IDR +70%
Samyang Foods Co 003230 1,219,000 KRW 1,010,543 KRW -17%
Patanjali Foods Limited PATANJALI ₹352.60 ₹144.77 -59%
Vietnam Dairy Products Joint Stock Company VNM 61,600 VND 52,858 VND -14%
PT Mayora Indah Tbk, MYOR 1,665 IDR 2,699 IDR +62%
PT Cisarua Mountain Dairy Tbk CMRY 4,630 IDR 4,350 IDR -6%
Nongshim Co 004370 389,500 KRW 530,619 KRW +36%

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Frequently asked questions

Is Heritage Foods Limited (HERITGFOOD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹283.31 versus a price of ₹363.65, about −22% (overvalued).
What is the fair value of HERITGFOOD?
Our model-based fair value for Heritage Foods Limited is ₹283.31 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹363.65.
What is the quality score of HERITGFOOD?
Heritage Foods Limited has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Heritage Foods Limited (HERITGFOOD)?
Heritage Foods Limited reported trailing-twelve-month revenue of about ₹45.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HERITGFOOD?
The net profit margin of Heritage Foods Limited is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.
Does Heritage Foods Limited pay a dividend?
Heritage Foods Limited currently shows a dividend yield of about 0.75% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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