Hatsun Agro Product Ltd

About

Hatsun Agro Product Limited has been in business for over 5 decades and achieved the position of the largest private-sector industry in the Dairy sector manufacturing and marketing Milk and Milk products, Ice-Cream, etc. [1] It was incorporated by Mr. R G Chandramogan, who has been in the dairy business for more than 30 years. [2] Its journey began with Arun Icecreams. [3]

Key Points

Products and Brands
Hatsun Agro manufactures and markets:

  1. Milk and Curd : Under the brand names “Arokya” and “Hatsun”. It has a HAP Daily store distribution network of 2500 outlets.

  2. Ice Creams : Under the brand names “Arun"(dominant position across South India) and new premium segment "IBACO". IBACO has a distribution network of 151 Stores.

  3. Cattle Feed : Under the brand name “Santosa”

  4. Ready To Eat : Under the new brand name “Oyalo” (100% vegetarian pizzas)

It also has a store distribution network of 949 outlets of HAP Daily (Icecream retail and distribution) and Oyalo together. [1] [2]

Read More
  • Market Cap 27,804 Cr.
  • Current Price 1,290
  • High / Low 1,534 / 644
  • Stock P/E 105
  • Book Value 47.9
  • Dividend Yield 0.47 %
  • ROCE 19.2 %
  • ROE 25.8 %
  • Face Value 1.00

Pros

  • Company has delivered good profit growth of 33.22% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 61.09%

Cons

  • Stock is trading at 26.92 times its book value
  • The company has delivered a poor sales growth of 10.09% over past five years.
  • Company might be capitalizing the interest cost

Peer comparison

Sector: FMCG Industry: Food - Processing - Indian

Loading peers table ...

Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
1,154 1,183 1,423 1,279 1,340 1,266 1,279 1,327 1,395 1,569 1,545 1,635
1,060 1,082 1,261 1,143 1,207 1,148 1,090 1,133 1,188 1,380 1,367 1,426
Operating Profit 95 101 163 136 133 118 189 194 207 189 178 209
OPM % 8% 8% 11% 11% 10% 9% 15% 15% 15% 12% 12% 13%
Other Income 2 3 9 2 2 -4 1 2 1 2 1 1
Interest 19 22 25 25 28 28 27 28 29 26 27 26
Depreciation 50 53 69 72 78 78 80 75 78 77 77 79
Profit before tax 28 28 78 40 30 9 83 93 101 87 75 105
Tax % 33% 29% 34% 37% 7% 7% 32% 29% 33% 35% 22% 22%
Net Profit 19 20 51 25 28 8 56 66 67 57 58 82
EPS in Rs 0.86 0.94 2.37 1.17 1.29 0.37 2.60 3.05 3.12 2.65 2.71 3.81

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
1,141 1,356 1,604 2,165 2,494 2,933 3,445 4,198 4,287 4,760 5,308 5,570 6,144
1,078 1,261 1,494 2,017 2,316 2,735 3,140 3,820 3,916 4,312 4,758 4,788 5,360
Operating Profit 63 95 109 148 178 198 305 378 372 448 550 782 783
OPM % 5% 7% 7% 7% 7% 7% 9% 9% 9% 9% 10% 14% 13%
Other Income 4 2 3 4 9 6 5 7 8 -1 9 3 6
Interest 28 36 38 44 41 63 68 70 88 86 106 110 109
Depreciation 27 37 42 50 65 94 107 143 174 201 296 310 312
Profit before tax 12 23 32 57 81 47 134 172 119 161 156 364 368
Tax % 77% 19% 17% 21% -0% 17% 55% 21% 23% 29% 28% 32%
Net Profit 3 19 27 45 82 39 60 135 91 115 112 246 265
EPS in Rs 1.25 2.09 3.82 1.82 2.81 6.28 4.21 5.33 5.21 11.43 12.29
Dividend Payout % 38% 21% 53% 41% 33% 50% 72% 45% 67% 56% 58% 70%
Compounded Sales Growth
10 Years: 15%
5 Years: 10%
3 Years: 9%
TTM: 18%
Compounded Profit Growth
10 Years: 30%
5 Years: 33%
3 Years: 40%
TTM: 68%
Stock Price CAGR
10 Years: 42%
5 Years: 38%
3 Years: 41%
1 Year: 82%
Return on Equity
10 Years: 25%
5 Years: 23%
3 Years: 20%
Last Year: 26%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
7 7 11 11 11 11 11 15 15 16 16 22 22
Reserves 47 86 97 119 169 211 220 333 350 789 888 1,000 1,011
Borrowings 314 297 341 402 494 614 672 919 1,299 1,028 1,434 1,622 1,659
98 96 120 155 171 220 255 320 367 413 376 474 490
Total Liabilities 466 486 568 687 844 1,056 1,157 1,588 2,032 2,246 2,714 3,117 3,182
322 349 361 392 504 632 647 991 1,217 1,408 1,756 1,929 1,971
CWIP 33 10 8 45 106 23 33 90 259 233 355 384 471
Investments 0 0 0 1 1 1 0 0 0 0 0 8 10
111 127 199 250 233 399 477 506 556 605 604 795 730
Total Assets 466 486 568 687 844 1,056 1,157 1,588 2,032 2,246 2,714 3,117 3,182

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
43 74 52 143 201 62 219 433 277 375 552 518
-85 -45 -47 -143 -212 -124 -134 -569 -523 -343 -537 -418
50 -34 -4 1 13 76 -79 162 223 -31 -7 -106
Net Cash Flow 8 -4 0 0 1 13 6 26 -23 1 8 -7

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 4 3 2 7 3 2 2 4 1 1 1 1
Inventory Days 24 23 43 25 17 43 51 36 45 44 36 55
Days Payable 20 13 18 19 18 18 20 20 20 19 14 13
Cash Conversion Cycle 8 13 26 13 3 27 32 19 26 25 24 43
Working Capital Days 6 9 19 11 3 17 22 6 10 10 10 19
ROCE % 12% 16% 17% 20% 19% 14% 23% 22% 14% 15% 13% 19%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
73.54 73.54 73.54 73.54 73.58 73.58 73.58 73.68 74.07 74.07 74.07 74.12
5.96 5.14 5.20 5.23 3.36 3.36 3.36 3.37 3.47 3.50 3.53 4.36
3.37 4.29 4.28 4.29 6.27 6.46 6.55 6.56 6.53 6.55 6.68 6.85
17.13 17.03 16.98 16.94 16.79 16.60 16.50 16.39 15.94 15.88 15.73 14.67

Documents