Mehabe score: 4 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Hatsun Agro Product Limited has been in business for over 5 decades and achieved the position of the largest private-sector industry in the Dairy sector manufacturing and marketing Milk and Milk products, Ice-Cream, etc. # It was incorporated by Mr. R G Chandramogan, who has been in the dairy business for more than 30 years. # Its journey began with Arun Icecreams.
Main Points
Products and Brands
Hatsun Agro manufactures and markets:
Milk and Curd : Under the brand names “Arokya” and “Hatsun”. It has a HAP Daily store distribution network of 2500 outlets.Site:HATSUNMain Symbol:HATSUN
Stock trades at 995.0, above its 50dma 884.36. It also trades above its 200dma 757.87. The stock remains bullish on techicals
The 52 week high is at 1035.00 and the 52week low is at 459.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 33.03% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 61.09%
Weakness
– Stock is trading at 21.00 times its book value
-The company has delivered a poor sales growth of 10.09% over past five years.
Competition
– The industry trades at a mean P/E of 52.1x. Tasty Bite Eat. trades at the industry’s max P/E of 125.29x. HATSUN trades at a P/E of 86.3x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 8.0. HATSUN has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 10.4%. The max 1- month return was given by KRBL: a return of 29.78 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1545.0 cr compared to Rs 1279.0 cr for period ended Jun 2020, a rise of 20.8%
Operating Profits reported at Rs 178.0 cr for period ended Jun 2021 vis-vis 189.0 for period ended Jun 2020 .
Operating Margins contracted -325.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.71 compared to Rs 2.65 for previous quarter ended Mar 2021 and Rs 2.6 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5835.0 cr for period ended TTM vis-vis sales of Rs 5570.0 cr for the period ended Mar 2021, a growth of 4.5%. The 3 year sales cagr stood at 7.0%.
Operating margins shrank to 13.0% for period ended TTM vis-vis 14.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 249.0 cr for period ended TTM vis-vis sales of Rs 246.0 cr for the period ended Mar 2021, rising 1.2%.
Company recorded a healthy Net Profit CAGR of 29.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 26.0% compared to 20.0% over the last 3 Years. – The stock has given a return of 103% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 13% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 112% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 3.53% vis-vis 3.5% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 15.73% vis-vis 15.88% for Mar 2021
Conclusion
– has delivered good profit growth of 33.03% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 61.09% – Stock is trading at 21.00 times its book value
-The company has delivered a poor sales growth of 10.09% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 884.36 and is trading at 995.0, thus bullish price action wise.
