NSEI:HATSUNPP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with proven track record.

Risks

  • Hatsun Agro Product has significant price volatility in the past 3 months.
  • Hatsun Agro Product is covered by less than 3 analysts.

Similar Companies

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


Market Performance


7 Day Return

12.2%

NSEI:HATSUNPP

0.2%

IN Food

-1.2%

IN Market


1 Year Return

-21.4%

NSEI:HATSUNPP

-3.7%

IN Food

-10.7%

IN Market

HATSUNPP underperformed the Food industry which returned -3.7% over the past year.

HATSUNPP underperformed the Market in India which returned -10.7% over the past year.


Share holder returns

HATSUNPPIndustryMarket
7 Day12.2%0.2%-1.2%
30 Day-20.6%5.7%-0.6%
90 Day-19.9%0.3%-7.7%
1 Year-20.7%-21.4%-2.4%-3.7%-9.0%-10.7%
3 Yearn/a54.1%49.7%17.2%11.2%
5 Yearn/a112.8%102.3%34.9%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hatsun Agro Product undervalued based on future cash flows and its price relative to the stock market?

76.89x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hatsun Agro Product's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hatsun Agro Product's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hatsun Agro Product is overvalued based on earnings compared to the IN Food industry average.

Hatsun Agro Product is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Hatsun Agro Product is poor value based on expected growth next year.


Price Based on Value of Assets

Hatsun Agro Product is overvalued based on assets compared to the IN Food industry average.


Next Steps

Future Growth

How is Hatsun Agro Product expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hatsun Agro Product's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

Hatsun Agro Product's earnings are expected to grow significantly at over 20% yearly.

Hatsun Agro Product's revenue growth is expected to exceed the India market average.

Hatsun Agro Product's earnings growth is expected to exceed the India market average.

Hatsun Agro Product's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Hatsun Agro Product is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

17.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hatsun Agro Product's year on year earnings growth rate has been positive over the past 5 years.

Hatsun Agro Product's 1-year earnings growth exceeds its 5-year average (37.1% vs 17.1%)

Hatsun Agro Product's earnings growth has exceeded the IN Food industry average in the past year (37.1% vs 16.6%).


Return on Equity

Hatsun Agro Product has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hatsun Agro Product used its assets more efficiently than the IN Food industry average last year based on Return on Assets.


Return on Capital Employed

Hatsun Agro Product's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hatsun Agro Product's financial position?


Financial Position Analysis

Hatsun Agro Product's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Hatsun Agro Product's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Hatsun Agro Product's level of debt (91.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (274.3% vs 91.5% today).

Debt is well covered by operating cash flow (50.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

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

1.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hatsun Agro Product's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Hatsun Agro Product's dividend is below the markets top 25% of dividend payers in India (2.36%).

Hatsun Agro Product has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Hatsun Agro Product only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of Hatsun Agro Product's salary, the management and board of directors tenure and is there insider trading?

8.9yrs

Average management tenure


CEO

R. Chandramogan (70yo)

15.4yrs

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

R.'s remuneration is lower than average for companies of similar size in India.

R.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.9yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Hatsun Agro Product management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

60yo

Average Age

The tenure for the Hatsun Agro Product board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • R. Chandramogan (70yo)

    MD & Executive Director

    • Tenure: 15.4yrs
    • Compensation: ₹6.68m
  • C. Sathyan (41yo)

    Executive Director of Operations & Executive Director

    • Tenure: 18.3yrs
    • Compensation: ₹6.61m
  • V. Sinha (54yo)

    Senior General Manager of Technology

    • Tenure: 0yrs
    • Compensation: ₹2.52m
  • M. Jaganath (52yo)

    General Manager of Marketing & Sales

    • Tenure: 0yrs
    • Compensation: ₹2.40m
  • J. Venkatesh (54yo)

    Assistant Vice President of Marketing & sales

    • Tenure: 0yrs
    • Compensation: ₹2.40m
  • P. A. Kumar (60yo)

    Assistant Vice President of QA

    • Tenure: 0yrs
    • Compensation: ₹2.52m
  • H. Ramachandran (55yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: ₹5.88m
  • John Neizent (58yo)

    Specialist of Dairy Herd Development

    • Tenure: 0yrs
    • Compensation: ₹6.88m
  • G. Somasundaram

    Company Secretary & Compliance Officer

    • Tenure: 0.5yrs
    • Compensation: ₹2.60m

Board Members

  • Vaidyanathan Panchapagesan (72yo)

    Non-Executive Non-Independent Director

    • Tenure: 20.5yrs
    • Compensation: ₹370.00k
  • R. Chandramogan (70yo)

    MD & Executive Director

    • Tenure: 15.4yrs
    • Compensation: ₹6.68m
  • K. Thanarajan (70yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: ₹330.00k
  • S. Subramanian (60yo)

    Non-Executive Independent Director

    • Tenure: 0.7yrs
  • C. Sathyan (41yo)

    Executive Director of Operations & Executive Director

    • Tenure: 18.3yrs
    • Compensation: ₹6.61m
  • Balasubramanian Thenamuthan (59yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: ₹210.00k
  • Balaji Tammineedi (59yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹360.00k
  • Chalini Madhivanan (62yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹300.00k
  • D. Sathyanarayan (60yo)

    Non-Executive Non-Independent Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Hatsun Agro Product Limited
  • Ticker: HATSUNPP
  • Exchange: NSEI
  • Founded: 1970
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹97.331b
  • 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 INR444 UPD111)ININRJul 2018
HATSUNPPNSEI (National Stock Exchange of India)INR1 (PPD INR444 UPD111)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 Aro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 12:56
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
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.