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Check Before You Invest : Hatsun Agro Product Ltd

BSE: 531531 NSE: HATSUN ISIN: INE473B01035
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Hatsun Agro Product Ltd belong to?
Hatsun Agro Product Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Hatsun Agro Product Ltd a good quality company?
Hatsun Agro Product Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hatsun Agro Product Ltd undervalued or overvalued?
Hatsun Agro Product Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 57.57 91.87
Price to Book 10.55 15.56
Price to Sales 2.06 2.99
EV to EBITDA 18.3 29.20
Q.4 Is Hatsun Agro Product Ltd a good buy now?
Hatsun Agro Product Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd revenue growth is 8.5% for FY-2025, which is below its 5-year CAGR of 10.3%, indicating slower growth.

Q.2 Gross Profit margin of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025, which is in line with its 5-year median of 9.8%, indicating stable margins.

Q.3 Operating Profit Margin of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.7% for FY-2025, which is in line with its 5-year median of 11.34% indicating stable margins.

Q.4 Net Profit Margin of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Net Profit Margin is 3.29% for FY-2025, is in line with its 5-year median of 3.34%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.8 9.8
Operating Profit Margin (%) 11.7 11.34
Net Profit Margin (%) 3.29 3.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Return on Asset is 5.29%, which is below its 5-year historical median of 5.67%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Return on capital employed is 14.82% for FY-2025, which is in line with its 5-year historical median of 15.21%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Return on equity is 17.32% for FY-2025, which is in line with its 5-year historical median of 17.74%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Cash conversion cycle is 42 days, above its 5-year historical median of 25 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.61 1.8
ROE (%) 17.32 17.74
ROCE (%) 14.82 15.21
Cash Conversion Cycle 42 days 25 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Debt-to-Equity ratio is 1.22, which is above the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd Debt to cash flow from operations is 1.45, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Hatsun Agro Product Ltd?

Q.1 Promoter shareholding and pledge status of Hatsun Agro Product Ltd?
Promoters hold 73.17% of the Hatsun Agro Product Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Hatsun Agro Product Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Hatsun Agro Product Ltd vs industry peers?
Hatsun Agro Product Ltd revenue CAGR is 10.30%, compared to the industry median CAGR of 7.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.5 7
Gross Profit Growth (%) 11 13.3
Operating Profit Growth (%) 12.8 12.6
Net Profit Growth (%) 6.7 20.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.61 1.2
ROE (%) 17.32 7.22
ROCE (%) 14.82 11.34
Cash Conversion Cycle (days) 42.34 48

Valuation & price assessment

Q.1 Stock return of Hatsun Agro Product Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15.3% 1.9% 1.7% 2.3%
Q.2 Valuation ratios of Hatsun Agro Product Ltd vs historical?
The current P/E ratio of 57.57 is lower than its historical median of 91.87, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 57.57 91.87 26.55
Price to Book 10.55 15.56 2.53
Price to Sales 2.06 2.99 1.43
EV to EBITDA 18.3 29.20 14.38

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