Heritage Food is flying high at Rs 360+ surging over 130% in 100 days since Director’s wife picked up 50000 shares at @ Rs 155 !

Heritage Food is flying high at Rs 360+ surging over 130% in 100 days since Director’s wife picked up 50000 shares at @ Rs 155 !

Closed at Rs 357 today after a high of Rs 367

The Company was set up by the ex Andhra Pradesh CM,Chandrababu Naidu and is headed  by his wife, N Bhuvaneshwari ~ They hold @ 46% of the Equity  ~ Above Director’s wife shares too are included in the Promoter Group

Heritage Foods was quoted @ Rs 150 in the beginning of July 2012 ~ There was some relatively heavy volume on July 4 and July 11 ~ Company informed the BSE in a communication dated July 5,2012 but updated on BSE website on July 12,2012  that Nara Brahmani,wife of Executive Director Nara Lokesh had purchased 50000 shares in the Open Market through Zen Securities at Rs 77.50 lakhs or Rs 155 per share on July 4,2012  ~ She held just 500 shares prior to this !

http://www.bseindia.com/xml-data/corpfiling/AttachHis/Heritage_Foods_(India)_Ltd_200712_SAST.pdf

Check out the first Fortnight July 2012 volumes on BSE for Heritage ~ normal trading was in a few thousands except for the two days stated above

Well Done Guys ! You’ve gained a cool 130% or over Rs 1,00,00,000 or Rs One Crore in gains INSIDE  just 100 days !

Valuation wise the FY 12 EPS was @ Rs 8 with PAT at RS 9.19 crs on an Equity (FV Rs 10) of Rs 11.53 crs ~ Book Value is Rs 80 with Networth just above Rs 92 crs ~ Q 1 FY 13 has shown superlative strong results and the mood is upbeat with a strong surge in PAT expected this year ~ PAT for the the three months ending June 30,2012 was Rs 8.44 crs ~ it thus earned in three months nearly as much as it had in the whole of last year !  However with Closing Price at Rs 357 today ,and considering FY 12 Earnings and Assets,relative valuation give a P/E of 45 and P/BV of 4.5 ~ That’s High ! and clearly a record FY 13 Year is being reflected in the surging share price  ~ EPS should comfortably double past Rs 16 and even move above Rs 20 ~ that adjusts the Forward P/E to below 20….The current Market Cap is just Rs 411 crs or @ US $ 75 Million for a Company whose Sales should cross Rs 1500 crs this year through a strong marketing and distribution Chain that cannot be replicated overnight ~ and what’s US $ 75 million for a FMCG MNC to buy out 100% of a leading Indian Listed Dairy Company that has a major market share in South India through over 1000 Franchisee and Own Retail Outlets and Parlors     

So what’s happening ! ~ Heritage Foods has been wooed by several FMCG Multinationals in the past ~ like the likes of HUL & Nestle ! ~ It’s Dairy Division is the Main Driver while the Retail Division is recovering from the nascent loss

Non Linear Earnings Growth is indicated  clearly in FY 13 and coupled with prospects of a multinational acquiring the company,there could be a further rise in this Hyderabad based company ! Q 1 FY 13  was superlative  ~ Q 2 results September 30,2012 results are to be declared when the Board meets on October 30,2012 and should confirm that FY 13 will be very upbeat with all time record earnings

But then  did we know,like the Company’s Directors did that  the June Quarter would be so delightful ! and record earnings would be made  ~ they picked up shares in four days after the June Quarter ended ! ~ results of course were updated by BSE on it’s website on July 30,2012 when the Company informed them

…or else we too would,or maybe I should say should or could  have picked the share up at Rs 155 in early July 2012 and got these awesome 130% gains in 100 days !  ~ Early August the Price began nudging Rs 200 and early September had crossed Rs 250 with October beginning  powering it past Rs 300  and in the last three days surging past Rs 320 and swinging like a pendulum intra day between Rs 325 to Rs 372

“From Farm to Fork” is the slogan of Heritage Foods ~ it’s got a spright in it’s steps and it’s best years have arrived  

So are you going to Drink Milk at Rs 357!?

Cheers !