Hatsun Agro
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Hatsun Agro Products is currently navigating a challenging inflationary environment, with elevated milk procurement and packaging costs impacting margins. Management has indicated a strong demand for its Value Added Products (VAP) and summer-specific offerings, which are expected to drive revenue growth despite the cost pressures. The company's strategic focus on premiumization and operational efficiency is crucial for sustaining profitability, as it aims to implement price hikes to offset rising input costs. Vista's financial outlook reflects a cautious optimism, projecting a 27.6% PAT CAGR through FY28E, supported by the company's ability to adapt to market conditions. However, execution risks related to commodity price volatility and competitive pressures remain significant watchpoints. The FMCG sector's expansion, characterized by a projected 10% volume growth, provides a favorable backdrop for Hatsun, although competitive pricing dynamics may challenge margin stability. Over the next 12-24 months, key opportunities include the continued demand for premium products and effective cost management, while headwinds may arise from inflationary pressures and market competition
Why We Like This Stock
- Strong demand for Value Added Products and summer-specific categories supports revenue growth
- Management's focus on premiumization and supply chain efficiency is expected to enhance long-term value
- The FMCG sector's overall expansion provides a favorable environment for Hatsun's growth initiatives
Things To Watch Out For
- Elevated milk procurement and packaging costs are pressuring profit margins
- Execution risks related to commodity price volatility could impact financial performance
- Intense competition in the FMCG sector may challenge market share and pricing power
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,990 | 8,667 | 9,959 | 10,622 | 11,508 |
| Profit Before Tax (Cr.) | 341 | 380 | 470 | 398 | 496 |
| PBT Margin | 4.3% | 4.4% | 471.9% | 3.7% | 4.3% |
| Net Profit (Cr.) | 218 | 272 | 340 | 289 | 360 |
| Earnings Per Share | 9.8 | 12.2 | 15.3 | 13.0 | 16.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ► Add | 1,000 | 22-Jul-2026 |
Company Overview
Show Company Profile
Hatsun Agro Product Limited engages in the manufacture and marketing of milk, milk products, and cattle feed in India and internationally. The company offers ice cream; kulfi flavours; and topping and fermented dairy products, such as yoghurt and dairy-based spreads. It also provides dairy whitener, skimmed milk powder, ghee, paneer, curd, cooking and table butter, lassi, buttermilk, yoghurt shakes, cheese spread, juice, and cocoa-based confectionery. The company distributes its products through stores under the Arun Icecreams, Arokya, Hatsun, HAP daily, Ibaco, Hanobar, Havia Chocolates, Milky Moo, Daily Moo, Imiyo, and Santosa brand names. Hatsun Agro Product Limited was founded in 1970 and is headquartered in Chennai, India.