Hatsun Agro Product (NSEI:HATSUN) - Share price, News & Analysis

HATSUN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	4/6

HATSUN Stock Overview

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

Rewards

Earnings have grown 18.8% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Hatsun Agro Product Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hatsun Agro Product
Historical stock prices
Current Share Price	₹895.35
52 Week High	₹1,525.95
52 Week Low	₹837.60
Beta	0.65
1 Month Change	1.43%
3 Month Change	-20.37%
1 Year Change	-1.26%
3 Year Change	67.75%
5 Year Change	100.18%
Change since IPO	542.81%

Recent News & Updates

May 25

Hatsun Agro Product (NSE:HATSUN) Has A Somewhat Strained Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

May 10

Returns On Capital Signal Tricky Times Ahead For Hatsun Agro Product (NSE:HATSUN)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

	HATSUN	IN Food	IN Market
7D	2.2%	2.5%	2.3%
1Y	-1.3%	-5.0%	-0.9%

Return vs Industry: HATSUN exceeded the Indian Food industry which returned -5% over the past year.

Return vs Market: HATSUN matched the Indian Market which returned -0.9% over the past year.

Price Volatility

Is HATSUN's price volatile compared to industry and market?
HATSUN volatility
HATSUN Average Weekly Movement	5.4%
Food Industry Average Movement	7.6%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: HATSUN is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HATSUN's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1970	5,189	C. Sathyan	https://www.hap.in

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.

Hatsun Agro Product Fundamentals Summary

How do Hatsun Agro Product's earnings and revenue compare to its market cap?
HATSUN fundamental statistics
Market Cap	₹192.95b
Earnings (TTM)	₹2.48b
Revenue (TTM)	₹63.70b

77.7x

P/E Ratio

3.0x

P/S Ratio

Is HATSUN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HATSUN income statement (TTM)
Revenue	₹63.70b
Cost of Revenue	₹44.08b
Gross Profit	₹19.62b
Other Expenses	₹17.14b
Earnings	₹2.48b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	11.52
Gross Margin	30.80%
Net Profit Margin	3.90%
Debt/Equity Ratio	154.1%

How did HATSUN perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

61%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HATSUN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HATSUN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HATSUN. This is calculated by dividing HATSUN's market cap by their current preferred multiple.
What is HATSUN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹192.95b

HATSUN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.3x
Enterprise Value/EBITDA	29.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HATSUN's PE Ratio compare to its peers?

HATSUN PE Ratio vs Peers

The above table shows the PE ratio for HATSUN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.1x

Forward PE

Price-To-Earnings vs Peers: HATSUN is expensive based on its Price-To-Earnings Ratio (77.7x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does HATSUN's PE Ratio compare vs other companies in the Indian Food Industry?

Price-To-Earnings vs Industry: HATSUN is expensive based on its Price-To-Earnings Ratio (77.7x) compared to the Indian Food industry average (22.5x)

Price to Earnings Ratio vs Fair Ratio

What is HATSUN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HATSUN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	77.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HATSUN's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of HATSUN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HATSUN (₹895.35) is trading above our estimate of fair value (₹116.86)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.7%

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.

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Hatsun Agro Product is a dividend payer. Have a look at its current yield, dividend levels over time and whether analysts believe the payout ratio will be sustainable moving forward.
Hatsun Agro Product competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HATSUN has high quality earnings.

Growing Profit Margin: HATSUN's current net profit margins (3.9%) are lower than last year (4.4%).

Past Earnings Growth Analysis

Earnings Trend: HATSUN's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: HATSUN's earnings growth over the past year (0.8%) is below its 5-year average (18.8% per year).

Earnings vs Industry: HATSUN earnings growth over the past year (0.8%) underperformed the Food industry 12.1%.

Return on Equity

High ROE: Whilst HATSUN's Return on Equity (22.39%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Hatsun Agro Product's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HATSUN's short term assets (₹8.0B) do not cover its short term liabilities (₹14.2B).

Long Term Liabilities: HATSUN's short term assets (₹8.0B) do not cover its long term liabilities (₹10.1B).

Debt to Equity History and Analysis

Debt Level: HATSUN's net debt to equity ratio (150.5%) is considered high.

Reducing Debt: HATSUN's debt to equity ratio has reduced from 246.7% to 154.1% over the past 5 years.

Debt Coverage: HATSUN's debt is well covered by operating cash flow (33.7%).

Interest Coverage: HATSUN's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HATSUN's dividend (0.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: HATSUN's dividend (0.67%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: HATSUN's dividend payments have been volatile in the past 10 years.

Growing Dividend: HATSUN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.8%), HATSUN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.4%), HATSUN's dividend payments are well covered by cash flows.

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Management

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

2.5yrs

Average management tenure

CEO

C. Sathyan (43 yo)

1.67yrs

Tenure

₹8,011,200

Compensation

Mr. C. Sathyan Managing Director at Hatsun Agro Product Limited since October 19, 2020 and served as its Executive Director of Operations since June 1, 2006. Mr. Sathyan joined Hatsun Agro Products in 2001...

CEO Compensation Analysis

Compensation vs Market: C.'s total compensation ($USD102.35K) is below average for companies of similar size in the Indian market ($USD643.30K).

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

Leadership Team

Experienced Management: HATSUN's management team is considered experienced (2.5 years average tenure).

Board Members

Experienced Board: HATSUN's board of directors are considered experienced (6.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31