Hatsun Agro Product reports 2x growth in net profit YoY; stock zooms over 12%

Shares of Hatsun Agro Product known for its brands like Arun Icecreams, Hatsun Curd, Hatsun Paneer, Hatsun Ghee, and Hatsun Dairy Whitener, gained over 12 per cent in Tuesday's trade on BSE after the company reported good Q4 numbers. 

At around 10:04 a.m., shares of Hatsun Agro Product traded 12.04 per cent or Rs 123.3, higher at Rs 1147 apiece. The market capitalisation of the company at around the same time stood at Rs 25,549.23 crore. 

The dairy product company reported its fourth-quarter numbers on Monday after market hours. The Q4 results showed that the company's profit after tax (PAT) grew 2.08 times to Rs 52 crore against Rs 25 crore year-on-year (YoY). Its revenue grew 14.4 per cent to Rs 2,047 crore for the quarter under review against Rs 1,789 crore a year ago. 

The earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 47.3 per cent to Rs 230 crore against Rs 156.16 crore a year ago. The margin of the company grew by 251 basis points (bps) to 11.24 per cent for the quarter ended March against 8.73 per cent a year ago. 

ICICI Securities has upgraded its rating on the stock from 'hold' to 'buy' and has given a target price of Rs 1,190 apiece. 

"We remain positive on Hatsun due to competitive advantages such as established brands, distribution and direct milk procurement. We marginally raise FY25E and FY26E earnings by 0.4 per cent and 3.3 per cent, respectively," the brokerage report read.

Hatsun Agro Product manufactures and markets products that cater to both cooking and consumption, like, milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, and paneer. It has a global presence with dairy ingredients exported to 42 countries around the world — primarily in America, the Middle East, and South Asian markets.

The company's brands enjoy considerable share in the states of Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Puducherry, Kerala, Maharashtra, Goa, Gujarat, Chhattisgarh and Odisha.

Hatsun Agro Product share price: Past performance 

In a year, Hatsun Agro Product shares have gained over 37 per cent against Nifty50's rise of over 26 per cent. 

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