BSE:531531

Stock Analysis Report

Executive Summary

Hatsun Agro Product Limited manufactures and markets ice creams, milk, milk products, and cattle feed primarily in India.


Snowflake Analysis

Solid track record with imperfect balance sheet.


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Share Price & News

How has Hatsun Agro Product's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531531's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.5%

531531

14.8%

IN Food

8.9%

IN Market


1 Year Return

-29.0%

531531

-3.8%

IN Food

-30.6%

IN Market

Return vs Industry: 531531 underperformed the Indian Food industry which returned -3.2% over the past year.

Return vs Market: 531531 matched the Indian Market which returned -29.3% over the past year.


Shareholder returns

531531IndustryMarket
7 Day22.5%14.8%8.9%
30 Day-26.9%-13.9%-24.8%
90 Day-14.1%-12.3%-29.4%
1 Year-28.4%-29.0%-2.4%-3.8%-29.2%-30.6%
3 Year1.3%-2.3%43.8%39.4%-17.0%-21.5%
5 Year133.7%121.7%84.2%75.2%-5.4%-10.4%

Price Volatility Vs. Market

How volatile is Hatsun Agro Product's share price compared to the market and industry in the last 5 years?


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2 years ago | Simply Wall St

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Valuation

Is Hatsun Agro Product undervalued compared to its fair value and its price relative to the market?

64.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 531531 (₹505) is trading above our estimate of fair value (₹63.69)

Significantly Below Fair Value: 531531 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 531531 is poor value based on its PE Ratio (64.4x) compared to the Food industry average (10.3x).

PE vs Market: 531531 is poor value based on its PE Ratio (64.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531531's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531531 is overvalued based on its PB Ratio (10x) compared to the IN Food industry average (0.7x).


Next Steps

Future Growth

How is Hatsun Agro Product forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.1%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hatsun Agro Product has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hatsun Agro Product performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531531 has high quality earnings.

Growing Profit Margin: 531531's current net profit margins (2.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 531531's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: 531531's earnings growth over the past year (28.2%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: 531531 earnings growth over the past year (28.2%) exceeded the Food industry 20.6%.


Return on Equity

High ROE: 531531's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Hatsun Agro Product's financial position?


Financial Position Analysis

Short Term Liabilities: 531531's short term assets (₹4.3B) do not cover its short term liabilities (₹9.0B).

Long Term Liabilities: 531531's short term assets (₹4.3B) do not cover its long term liabilities (₹7.2B).


Debt to Equity History and Analysis

Debt Level: 531531's debt to equity ratio (111.2%) is considered high.

Reducing Debt: 531531's debt to equity ratio has reduced from 211.7% to 111.2% over the past 5 years.

Debt Coverage: 531531's debt is well covered by operating cash flow (58%).

Interest Coverage: 531531's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 531531 has a high level of physical assets or inventory.

Debt Coverage by Assets: 531531's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Hatsun Agro Product's current dividend yield, its reliability and sustainability?

0.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 531531's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 531531's dividend (0.79%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: 531531 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 531531's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.5%), 531531's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

R. Chandramogan (70yo)

15.92s

Tenure

₹6,681,200

Compensation

Mr. R. G. Chandramogan has been Managing Director of Hatsun Agro Product Limited since April 1, 2004. He served as Chairman of Hatsun Agro Product Limited until June 21, 2019. He serves as the Executive Di ...


CEO Compensation Analysis

Compensation vs Market: R.'s total compensation ($USD88.64K) is below average for companies of similar size in the Indian market ($USD463.73K).

Compensation vs Earnings: R.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
R. Chandramogan
MD & Executive Director15.92yrs₹6.68m56.62% 49.9b
H. Ramachandran
Chief Financial Officer5yrs₹5.88mno data
C. Sathyan
Executive Director of Operations & Executive Director18.75yrs₹6.61m9.4% 8.3b
G. Somasundaram
Company Secretary & Compliance Officer1yr₹2.60mno data
V. Sinha
Senior General Manager of Technologyno data₹2.52mno data
M. Jaganath
General Manager of Marketing & Salesno data₹2.40mno data
J. Venkatesh
Assistant Vice President of Marketing & salesno data₹2.40mno data
P. A. Kumar
Assistant Vice President of QAno data₹2.52mno data
John Neizent
Specialist of Dairy Herd Developmentno data₹6.88mno data

9.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 531531's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
R. Chandramogan
MD & Executive Director15.92yrs₹6.68m56.62% 49.9b
C. Sathyan
Executive Director of Operations & Executive Director18.75yrs₹6.61m9.4% 8.3b
Vaidyanathan Panchapagesan
Non-Executive Non-Independent Director21yrs₹370.00k0.56% 490.5m
K. Thanarajan
Chairman of the Board0.75yr₹330.00k0.34% 295.3m
S. Subramanian
Non-Executive Independent Director1.17yrsno datano data
Balasubramanian Thenamuthan
Non-Executive Independent Director6.17yrs₹210.00kno data
Balaji Tammineedi
Non-Executive Independent Director5.5yrs₹360.00kno data
Chalini Madhivanan
Non-Executive Independent Director5.5yrs₹300.00kno data
D. Sathyanarayanan
Non-Executive Non-Independent Director0.75yrno datano data

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 531531's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hatsun Agro Product Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hatsun Agro Product Limited
  • Ticker: 531531
  • Exchange: BSE
  • Founded: 1970
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹88.115b
  • Shares outstanding: 161.68m
  • Website: https://www.hap.in

Number of Employees


Location

  • Hatsun Agro Product Limited
  • Domaine
  • Door No: 1/20A
  • Chennai
  • Tamil Nadu
  • 600097
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531531BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2011
HATSUNNSEI (National Stock Exchange of India)YesEquity SharesININROct 2011
890146BSE (Mumbai Stock Exchange)INR1 (PPD INR555)ININRJul 2018
HATSUNE1NSEI (National Stock Exchange of India)INR1 (PPD INR555)ININRJul 2018

Biography

Hatsun Agro Product Limited manufactures and markets ice creams, milk, milk products, and cattle feed primarily in India. The company offers standardized, full cream, and toned milk; and curd under the Arokya brand name. It also provides milk, skimmed milk powder, dairy whitener, ghee, paneer cubes, table and cooking butter, and milk beverages under the Hatsun brand name; and ice cream cakes, bars, and shakes, as well as signature cones and chocolates under the Ibaco brand name. In addition, the company offers a range of ice creams, bars, flavoured tubs, and specialty products under the Arun brand; pizzas and cakes under the Oyalo brand name; cattle feed under the Santosa brand name; milk mixes and drinks under the Aniva brand name; and dairy ingredients, as well as milk-based refreshments like milkshakes, yogurt shakes, yogurt toppings, paneer snacks, coffee, and other hot beverages. Further, it offers dairy products through a network of Hatsun Daily outlets. The company distributes its milk and curd products through its logistics and distribution networks in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Maharashtra. It also exports its products to 38 countries, which primarily include the United States, the Middle East, and South Asia. Hatsun Agro Product Limited was founded in 1970 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:16
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.