The brokerage models Heritage to report revenue and PAT CAGRs of 15% and 8%, respectively, over FY21-FY23E. Core return ratios are expected to strong ~25% over FY21-23E. The brokerage is positive on the business model but current valuations limit the upside potential, the brokerage downgrades the stock to ADD rating and value the stock as per DCF methodology at Rs550 (Implied P/E 14x FY23E).
Promoter/FII Holdings
Promoters held 39.9 per cent stake in the company as of June 30, 2021, while FIIs held 3 per cent, DIIs 30.6 per cent and public and others 43.3 per cent.
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