Heritage Foods: What lies ahead after a soft quarter?

Stocks

Higher contribution from value-added products and operating leverage along with price hikes will lead to recovery in earnings

Heritage Foods: What lies ahead after a soft quarter?

The December 2022 quarter results of Heritage Foods were below expectations.

PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook

Highlights Higher raw milk prices impacted the performance Value-added products saw higher growth The March 23 quarter performance also likely to be impacted Investors with a longer-term view can add and accumulate on declines The December ’22 quarter results of Heritage Foods (HFL; CMP: Rs171) were below expectations. Companies in the dairy segment continued to remain impacted by higher raw milk prices. Value-added products contributed around 29 percent to the revenues for the 9-month period ended December ’22 against 40 percent targeted for the…