Heritage Foods Limited (HERITGFOOD) AI Stock Analysis

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Heritage Foods Limited

(NSE:HERITGFOOD)

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Rating:58Neutral

Price Target:INR 422.00▲(9.17% Upside)

Action:reiterated

Date:08/17/26

The score is primarily held back by deteriorating cash flow (negative 2026 free cash flow and weaker cash conversion) and softer 2026 profitability despite continued revenue growth. Technicals are supportive in the short term (price above key short/mid-term averages and positive MACD) but are close to overbought and still below the 200-day average. Valuation is only moderately attractive given a ~24.6 P/E and low dividend yield.

Positive Factors

Consistent Revenue GrowthHeritage Foods has maintained revenue growth across 2022–2026, demonstrating continued demand for its dairy portfolio and distribution reach. Although the latest pace moderated, sustained expansion provides a durable base for operating scale and future value-added product development.

Negative Factors

Negative Free Cash FlowFree cash flow swung sharply negative in 2026 after being positive in 2024–2025, indicating that spending or working-capital needs exceeded operating inflows. If persistent, weaker internal cash generation could constrain investment flexibility and increase reliance on financing.

Heritage Foods Limited (HERITGFOOD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 32.98B
Dividend Yield: 0.65%
Average Volume (3M): 36.75K
Price to Earnings (P/E): 31.0
Beta (1Y): 1.16
Revenue Growth: 13.91%
EPS Growth: -33.37%
Country: India
Employees: 3,317
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Heritage Foods Limited Business Overview & Revenue Model

Company Description

Heritage Foods Limited, an Indian enterprise, specializes in the procurement and processing of milk and an extensive range of dairy products. Its operations are structured across three primary segments: Dairy, Renewable Energy, and Feed. The Dairy di...

How the Company Makes Money

Heritage Foods makes money primarily by selling dairy products under its brand(s), with revenue largely driven by (1) liquid milk sales and (2) value-added dairy products. In its core dairy operations, the company procures raw milk (typically through...

Heritage Foods Limited Financial Statement Overview

Summary

Revenue has grown consistently (2022–2026), and leverage remains reasonable (2026 debt-to-equity ~0.33). However, profitability weakened in 2026 versus 2025 (lower operating and net margins), and cash flow quality deteriorated sharply with 2026 free cash flow turning strongly negative and weaker earnings-to-cash conversion.

Income Statement

64Positive

Balance Sheet

70Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	49.34B	45.26B	41.35B	37.94B	32.41B	26.79B
Gross Profit	7.68B	6.49B	9.92B	3.77B	2.77B	5.72B
EBITDA	2.65B	2.66B	3.43B	2.14B	1.52B	1.86B
Net Income	1.15B	1.50B	1.88B	1.07B	579.76M	965.69M
Balance Sheet
Total Assets	19.98B	19.50B	15.58B	12.79B	11.25B	9.03B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.56B	2.56B	2.10B	237.91M	351.01M
Total Debt	3.84B	3.61B	1.74B	1.32B	1.68B	192.52M
Total Liabilities	8.58B	8.42B	5.86B	4.73B	3.99B	2.45B
Stockholders Equity	11.37B	11.03B	9.72B	8.08B	7.26B	6.58B
Cash Flow
Free Cash Flow	0	-1.64B	374.81M	2.63B	-1.44B	1.01B
Operating Cash Flow	0	2.18B	2.14B	3.90B	-605.05M	1.48B
Investing Cash Flow	0	-3.76B	-2.29B	-2.52B	-826.24M	-424.45M
Financing Cash Flow	0	1.58B	9.98M	-759.30M	1.26B	-926.55M

Heritage Foods Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price386.55

Price Trends

50DMA386.55Positive

100DMA365.05Positive

200DMA350.91Positive

Market Momentum

MACD-2.85Negative

RSI55.55Neutral

STOCH78.37Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HERITGFOOD, the sentiment is Positive. The current price of 386.55 is above the 20-day moving average (MA) of 372.12, above the 50-day MA of 386.55, and above the 200-day MA of 350.91, indicating a bullish trend. The MACD of -2.85 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HERITGFOOD.

Heritage Foods Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:HERITGFOOD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:HATSUN	75Outperform	INR 231.96B	65.62	―	0.94%	17.90%	9.78%
IN:VADILALIND	73Outperform	INR 50.06B	21.02	―	0.86%	35.53%	78.98%
IN:NESTLEIND	64Neutral	INR 2.48T	59.62	―	0.94%	21.68%	38.17%
IN:PARAGMILK	63Neutral	INR 41.18B	32.33	―	0.34%	13.13%	-10.08%
IN:HERITGFOOD	58Neutral	INR 34.80B	31.02	―	0.65%	13.91%	-33.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PATANJALI	54Neutral	INR 467.85B	23.77	―	1.50%	19.32%	61.42%

* General Sector Average

Performance Comparison

IN:HERITGFOOD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:HERITGFOOD	Heritage Foods Limited	386.55	-91.79	-19.19%
IN:HATSUN	Hatsun Agro Product Limited	1060.60	-19.61	-1.82%
IN:NESTLEIND	Nestle India Ltd.	1263.00	6.51	0.52%
IN:PARAGMILK	Parag Milk Foods Ltd.	325.65	-26.82	-7.61%
IN:PATANJALI	Patanjali Foods Limited	431.30	-151.04	-25.94%
IN:VADILALIND	Vadilal Industries Limited	7006.05	1927.71	37.96%

Heritage Foods Limited Corporate Events

Heritage Foods Publishes Q2 & H1 FY27 Earnings Call Transcript

Oct 19, 2026

Heritage Foods Limited has released the transcript of its Q2 and H1 FY27 earnings conference call held on October 16, 2026, and made it available on both the company website and the stock exchanges. The call was organized for investors and analysts,...

Heritage Foods Moves to Lift Stake in Dairy Subsidiary Heritage Novandie

Oct 10, 2026

Heritage Foods Limited has updated the market on its plan to increase its stake in subsidiary Heritage Novandie Foods Limited by acquiring an additional 5.60 percent of the equity share capital. The company reported that it has paid the purchase cons...

Heritage Foods Gets Independent ESG Rating of 59 from SEBI-Registered Provider

Jul 30, 2026

Heritage Foods disclosed that ESG Risk Assessments & Insights Limited, a SEBI-registered ESG Rating Provider, has assigned the company an ESG rating of 59 as part of the provider’s annual review. The rating, published on July 29, 2026, reflects an in...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Heritage Foods Limited AI Stock Analysis