Heritage Foods:Growth supported by political power
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1027
Printed Date: 20/Apr/2025 at 8:23am
Topic: Heritage Foods:Growth supported by political power
Posted By: manojc
Subject: Heritage Foods:Growth supported by political power
Date Posted: 26/Jun/2007 at 10:08pm
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Herritage foods founded by Mr Chandrababu Naidu is on the roll out for opening up more and more retail shops in the name of fresh@ in Andhra, Karnataka and Tamilnadu. Company's principal activity is to manufacture and market of milk products. Company has a strong presence in this area in Andhra pradesh. Also Heritage is planning to launch the "Heritage" brand agro processed food products in the coming years. In 2007-2008, company is hopefull of making revenue of 300 Crore. At the current market price, shares are available at a P/E of 29, which is not high compared to peer companies. The backbone of company's growth is in its management. In 2009 elections a change in power in Andhra and center is very likely. With the governments supporting Naidu in power, he should be able to take his company to new heights.
Considering the above facts and also the huge opportunity in Indian retail market, This stock can surely be a multi bagger in 2 to 3 years.
Basantji and others could you please share your views about this company.
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Replies:
Posted By: tyler_durden
Date Posted: 26/Jun/2007 at 10:47pm
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highly speculative...what if naidu refrains from power? what if naidu comes to power and opposition accuses him of using power to promote his company... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: basant
Date Posted: 26/Jun/2007 at 10:49pm
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It went down from Rs 400 to rs 250 like a stone in water. A
friend whom I consider a very smart and astute investor is invested in this one and he holds quite afew of this company.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vijinat
Date Posted: 26/Jun/2007 at 11:08pm
Betting on Naidu, is no better than betting on V.K. Sharma, Tulsyan, Ambarish Baliga, Mathew et all.
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Posted By: Naren
Date Posted: 26/Jun/2007 at 11:31pm
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Basantji,
Considering the potential of indian retail story, do you think it's a good idea to enter in to Heritage. I have been to mailto:Heritage@fresh - Heritage fresh stores and quite impressed. Please share the name of the astute investor so that it will give us confidence before entering in to this one.
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Posted By: tyler_durden
Date Posted: 26/Jun/2007 at 11:37pm
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if we are buying this stock because naidu factor will help then we must check with bejan daruwalla first to know what r the chances of naidu coming back to power and having a favourable govt at the centre...
but since basant ji is saying that a person whom he think is an astute investor; is holding this stock then we can discuss it further... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mr. V
Date Posted: 26/Jun/2007 at 11:57pm
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Sometime back Devesh had posted the URL of Proffessor Sanjay Bakshi's blog.
The 2nd part of the following post explains how Heritage Foods became a real estate play ("Glamour) from a boring milk retail business
http://fundooprofessor.blogspot.com/2007/03/journey-from-value-to-glamour-two.html - The Journey from "Value" to "Glamour": Two Examples |
Posted By: basant
Date Posted: 26/Jun/2007 at 9:58am
I can vouch for his investing accumen and there a few people whom I know possess this kind of an investing mind. But as on date he is still holding on to his stake in the company. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tejas.k
Date Posted: 20/Nov/2012 at 9:59pm
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Is this a turnaround story? Showing very good top line and bottom line growth in the last 2 yrs. does it have any moat?. In Karnataka we don't get their other products. (only milk and curd ) and and price wise a 4 bagger in the last year. (It was in my radar since i like heritage milk and curd. its the best curd/milk out there. Recently I found nestle label curd packets which said manufactured by heritage marked by heritage. but i wasn't comfortable buying a Hyderabad based company and gave it a pass :) |
Posted By: bandlab1
Date Posted: 21/Nov/2012 at 7:27pm
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mrs naidu runs the company. it didnt take off as expected. also naidu's business are not in areas controlled by govt. unlike YSR who mindled thousands of crores for his son's steel plants, cement plants.
there's a sever compitition in this field ftom reliance fresh, more, ratnadeep and several other retailers.
stay away from such political counters .... naidu may not come to power in next 10 years
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Posted By: koolvalue
Date Posted: 21/Nov/2012 at 7:50pm
| The reason for this run up ---Tirumala milk products was rescently aquired by PE firms at very aggressive valuations.Per person consumption of milk in India is among highest in the world hence global Dairy majors are seriously focussing on India. |