Hatsun Agro Q4 Review - Strong Volume Led Revenue Growth, Margin Tailwinds; Upgrade To Buy: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Hatsun Agro Products Ltd. reported highest gross margins in past 10 quarters underlining the cyclical recovery in margins due to lower milk procurement prices. We believe margins may expand even in FY25 as-the company has accumulated large inventory of low priced skim milk powder at end of FY24. We model Hatsun to utilize it if milk procurement prices inch upwards,higher utilisation of Govindapuram (Andhra Pradesh) and Solapur (Maharashtra) plants andhigher revenue share of ice cream. .Hatsun Agro has also introduced chocolates under the brands Hanobar and Havia in FY24. We believe success of chocolates will likely be margin and discounted cash flow accretive.We remain positive on Hatsun due to competitive advantages such as established brands, distribution and direct milk procurement.We marginally raise FY25E and FY26E earnings by 0.4% and 3.3%, respectively. With 10% stock price correction over past six months and earning tailwinds, we upgrade stock to Buy from Hold with a DCF-based target price of Rs 1,190 (implied price/earnings of 50 times FY26E; earlier target price: Rs 1,145)..Click on the attachment to read the full report:.Page Industries - All Eyes On Inventory Liquidation; The Moat Remains Unchanged: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hatsun Agro Q4 Review - Strong Volume Led Revenue Growth, Margin Tailwinds; Upgrade To Buy: ICICI Securities

Margin expansion likely to continue in H1 FY25E

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