Hold Hatsun Agro Products, target price Rs 931: ICICI Securities

ICICI Securities has hold call on Hatsun Agro Products with a target price of Rs 931. The current market price of Hatsun Agro Products is Rs 888.9.


Hatsun Agro Products, incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 19111.84 Crore) operating in FMCG sector.


Hatsun Agro Products key Products/Revenue Segments include Milk & Milk Products, Scrap & Others for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 1695.63 Crore, down -3.15 % from last quarter Total Income of Rs 1750.79 Crore and up 6.75 % from last year same quarter Total Income of Rs 1588.41 Crore. Company has reported net profit after tax of Rs 46.44 Crore in latest quarter.

The company’s top management includes Mr.R G Chandramogan, Mr.C Sathyan, Mr.K S Thanarajan, Mr.P Vaidyanathan, Mr.D Sathyanarayan, Mr.Balaji Tammineedi, Mr.B Thenamuthan, Mr.S Subramanian, Dr.Chalini Madhivanan. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 22 Crore shares outstanding.

Investment Rationale
The brokerage remains structurally positive on Hatsun due to its competitive advantages and growth opportunity in South India but need more comfort on valuations to be constructive. It cuts earnings estimates factoring 9MFY23.

Promoter/FII Holdings
Promoters held 73 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.17 per cent, DIIs 8.15 per cent.