ICICI Securities is telling investors to buy shares of Hatsun Agro Products. They believe the price will reach Rs 1,250, while the current price is Rs 1,131.
Hatsun Agro was started in 1986 and is a medium-sized company in the FMCG (Fast-Moving Consumer Goods) sector, with a market value of Rs 25,147.17 crore. This company mainly sells milk and milk products.
In the latest quarter ending September 30, 2024, Hatsun Agro made Rs 2,078.72 crore in total income, which is a decrease of 12.56% compared to the previous quarter but an increase of 8.29% from the same period last year, which was Rs 1,919.52 crore. They also made a net profit of Rs 64.32 crore during this quarter.
Why Invest in Hatsun Agro?
ICICI Securities thinks that Hatsun Agro’s ice cream business will make more profit over time. The reasons are:
1. Better use of their Govindapur plant will help increase profits.
2. They have lower selling costs than their competitors because they provide refrigeration and use their own delivery system called HAP Daily.
3. They are launching new premium products.
The brokerage predicts that Hatsun Agro will see a growth of 14.0% in revenue and 37.2% in profits each year until 2027. They calculated the target price to be Rs 1,250, which means a price-to-earnings ratio of 53 and 40 times their expected earnings in 2026 and 2027.
Ownership
As of September 30, 2024, promoters own 73.17% of Hatsun Agro, foreign institutional investors (FIIs) own 3.29%, and domestic institutional investors (DIIs) own 10.17%.
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