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

Proven track record with moderate growth potential.


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

9.8%

HATSUNPP

3.4%

IN Food

1.6%

IN Market


1 Year Return

5.4%

HATSUNPP

11.7%

IN Food

0.8%

IN Market

Return vs Industry: HATSUNPP underperformed the Indian Food industry which returned 11.7% over the past year.

Return vs Market: HATSUNPP exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

HATSUNPPIndustryMarket
7 Day9.8%3.4%1.6%
30 Day33.7%8.0%1.5%
90 Dayn/a10.9%-3.3%
1 Year6.3%5.4%13.2%11.7%2.7%0.8%
3 Yearn/a62.4%57.7%22.0%16.0%
5 Yearn/a137.3%125.6%42.3%29.3%

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 compared to its fair value and its price relative to the market?

79.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HATSUNPP (₹548) is trading above our estimate of fair value (₹223.71)

Significantly Undervalued: HATSUNPP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HATSUNPP is poor value based on its PE Ratio (79.4x) compared to the Food industry average (13.9x).

PE vs Market: HATSUNPP is poor value based on its PE Ratio (79.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: HATSUNPP is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: HATSUNPP is overvalued based on its PB Ratio (12.6x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

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

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HATSUNPP's forecast earnings growth (30.6% per year) is above the savings rate (7.6%).

Earnings vs Market: HATSUNPP's earnings (30.6% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HATSUNPP's revenue (9.3% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: HATSUNPP's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if HATSUNPP's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: HATSUNPP's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: HATSUNPP's earnings growth over the past year (37.1%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: HATSUNPP earnings growth over the past year (37.1%) exceeded the Food industry 15.5%.


Return on Equity

High ROE: HATSUNPP's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: HATSUNPP has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: HATSUNPP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hatsun Agro Product's financial position?


Financial Position Analysis

Short Term Liabilities: HATSUNPP's short term assets (₹5.4B) do not cover its short term liabilities (₹9.0B)

Long Term Liabilities: HATSUNPP's short term assets (5.4B) do not cover its long term liabilities (5.4B)


Debt to Equity History and Analysis

Debt Level: HATSUNPP's debt to equity ratio (91.5%) is considered high

Reducing Debt: HATSUNPP's debt to equity ratio has reduced from 274.3% to 91.5% over the past 5 years.

Debt Coverage: HATSUNPP's debt is well covered by operating cash flow (50.9%).

Interest Coverage: HATSUNPP's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: HATSUNPP's 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?

0.64%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.8%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HATSUNPP's dividend (0.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HATSUNPP's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.6%), HATSUNPP's dividend 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

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

9.0yrs

Average management tenure


CEO

R. Chandramogan (70yo)

15.5yrs

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: Insufficient data to establish whether R.'s total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

9.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: HATSUNPP's management team is seasoned and experienced (9 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

60yo

Average Age

Experienced Board: HATSUNPP's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • R. Chandramogan (70yo)

    MD & Executive Director

    • Tenure: 15.5yrs
    • 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: 4.7yrs
    • Compensation: ₹5.88m
  • John Neizent (58yo)

    Specialist of Dairy Herd Development

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

    Company Secretary & Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: ₹2.60m

Board Members

  • Vaidyanathan Panchapagesan (72yo)

    Non-Executive Non-Independent Director

    • Tenure: 20.6yrs
    • Compensation: ₹370.00k
  • R. Chandramogan (70yo)

    MD & Executive Director

    • Tenure: 15.5yrs
    • Compensation: ₹6.68m
  • K. Thanarajan (70yo)

    Chairman of the Board

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

    Non-Executive Independent Director

    • Tenure: 0.8yrs
  • C. Sathyan (41yo)

    Executive Director of Operations & Executive Director

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

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: ₹210.00k
  • Balaji Tammineedi (59yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹360.00k
  • Chalini Madhivanan (62yo)

    Independent Director

    • Tenure: 5.1yrs
    • 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: ₹100.128b
  • 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 Analysis2019/10/14 12:51
End of Day Share Price2019/10/10 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.