Heritage Foods - Strengthening Its Base To Deliver Industry-Leading Growth: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.We attended the investor meet of Heritage Foods Ltd., to gain a perspective on the management’s long-term vision and growth strategy, as it looks to surpass market growth. The company aspires to achieve Rs 60 billion of revenue over the next four years, through organic means, which translates into ~22% compound annual growth rate over FY22-27E (organised industry CAGR estimated at ~15%) with steady-state Ebitda margin of 7-8%. The four key growth pillars that Heritage Foods would pursue are-consumer centricity, to expand its value-added portfolio, customer leadership, to expand its retail reach to three lakh outlets and multiple channels like modern trade and e-commerce,procurement scale up, to fully utilise its current processing capacity of 2.3-2.4 million litres per day, andmargin expansion, by increasing process efficiency and through a superior supply chain. Despite near-term headwinds in the sector, Heritage Foods is upbeat on the long-term growth potential of the organised private sector dairy companies who have appropriate products and a strong procurement/processing base..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Heritage Foods - Strengthening Its Base To Deliver Industry-Leading Growth: Systematix

The company aspires to achieve Rs 60 billion of revenue over the next four years, through organic means.

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