Hatsun Agro Product Limited (HATSUN) AI Stock Analysis

• Market Cap: ₹217.77B
• Dividend Yield: 0.61%
• Average Volume (3M): 10.36K
• Price to Earnings (P/E): 89.8
• Beta (1Y): 0.53
• Revenue Growth: 10.61%
• EPS Growth: 7.97%
• Country: IN
• Employees: 5,222
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.72
• Shares Outstanding: 222,748,260
• 10 Day Avg. Volume: 2,515
• 30 Day Avg. Volume: 10,356
• PEG Ratio: 16.99
• Price to Book (P/B): 11.72
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 25.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 17.45
• Revenue Forecast (FY): ₹97.66B

• Rating: 61 Neutral
• Price Target: ₹1,031.00 ▲(5.41% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Hatsun Agro Product Limited's overall stock score is driven by strong financial performance and bullish technical indicators. However, the high P/E ratio and overbought RSI suggest caution due to potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Diversified product & channels

Hatsun’s broad product portfolio (liquid milk, VADP, ice cream) and multi-channel distribution create recurring demand and reduce single-segment risk. Durable daily-consumption products plus company outlets and distributors support steady volumetric sales and geographic expansion over months to years.

Healthy operational margins and revenue growth

Consistent revenue growth with robust gross and operating margins indicates efficient processing and cost management in value-added products. Strong operational margins support reinvestment in cold-chain and brand, sustaining competitive advantage despite lower net margins, and underpin mid-term profitability.

Solid free cash flow generation

Recovery to sizable free cash flow and a high operating-cash-to-net-income ratio show the business can convert earnings into cash. That bolsters funding for capex, working capital for milk procurement and distribution, and provides balance sheet flexibility over the medium term.

Negative Factors

Moderate leverage

A debt-to-equity ratio near 1.5 and modest equity ratio indicate meaningful liabilities that reduce financial buffer. In an industry sensitive to raw milk price swings and seasonality, this leverage can constrain investment capacity and elevate refinancing or liquidity risk over a multi-quarter horizon.

Low net margin

A slim net margin limits the company’s ability to absorb commodity-cost shocks or rising logistics and cold-chain expenses. Even with solid gross and operating margins, low net conversion reduces retained earnings and weakens long-term resilience to sustained input-cost inflation or pricing pressure.

Volatile free cash flow history

Although FCF recovered recently, historical volatility points to seasonal working-capital swings or capex timing issues. Persistent FCF variability can complicate capital allocation, debt reduction and consistent reinvestment, making multi-quarter planning and deleveraging harder to execute reliably.

Hatsun Agro Product Limited Business Overview & Revenue Model

Company Description

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 Arokya brand name. It also provides milk, skimmed milk powder, dairy whitener, ghee, paneer cubes, table and cooking butter, and milk beverages under the Hatsun brand name; and ice cream cakes, bars, and shakes, as well as signature cones and chocolates under the Ibaco brand name. In addition, the company offers a range of ice creams, bars, flavoured tubs, and specialty products under the Arun brand; pizzas and cakes under the Oyalo brand name; cattle feed under the Santosa brand name; milk mixes and drinks under the Aniva brand name; and dairy ingredients, as well as milk-based refreshments like milkshakes, yogurt shakes, yogurt toppings, paneer snacks, coffee, and other hot beverages. Further, it offers dairy products through a network of Hatsun Daily outlets. The company distributes its milk and curd products through its logistics and distribution networks in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Maharashtra. It also exports its products to 42 countries, which primarily include the United States, the Middle East, and South Asia. The company operates approximately 3500 owned outlets. Hatsun Agro Product Limited was founded in 1970 and is based in Chennai, India.

How the Company Makes Money

Hatsun primarily makes money by purchasing raw milk from a large network of milk producers, processing it in company facilities, and selling branded dairy and ice-cream products at a markup through multiple go-to-market channels. Key revenue streams: 1) Branded liquid milk sales: The company sells packaged liquid milk (typically as standardized variants) via its distribution network and company-controlled outlets. This is generally a high-volume, frequent-purchase category that drives steady revenue. 2) Value-added dairy products (VADP): Hatsun generates revenue from higher-margin, processed dairy products such as curd/yogurt, ghee, butter, paneer, cream, flavored milk and other milk-based beverages. These products monetize the same raw milk supply through additional processing, branding, and packaging, often improving realizations versus liquid milk. 3) Ice cream and frozen desserts: Hatsun earns revenue from the manufacture and sale of ice cream and related frozen products sold through retail distribution and outlets. This segment is typically more seasonal but can carry attractive margins due to branding and product mix. Route-to-market and monetization mechanics: - Retail and company outlets: Sales through company-owned/controlled stores and franchise/partner retail formats allow direct customer access and can improve control over pricing, visibility, and product assortment. - Distributor/wholesale channels: A significant share of sales is generated through distributors/wholesalers supplying kirana stores, modern trade, and other retailers, enabling scale across regions. - Institutional/HoReCa and bulk customers: Where applicable, the company also supplies select products in bulk/large packs to institutions (specific share not available: null). Earnings drivers and factors influencing revenue: - Milk procurement and pricing: Profitability depends on procurement cost of raw milk and the company’s ability to pass input cost changes through pricing and mix. - Product mix and brand strength: A higher contribution from value-added dairy and ice cream generally supports better realizations. - Cold-chain and distribution scale: Efficient processing, chilling, and cold-chain logistics help reduce spoilage and enable wider reach, supporting revenue growth. Significant partnerships contributing to earnings: null

Hatsun Agro Product Limited Financial Statement Overview

Summary

Hatsun Agro Product Limited demonstrates strong financial performance with consistent revenue growth and solid profitability metrics. The balance sheet is stable but indicates moderate leverage. Cash flow generation is strong, though historical volatility may pose occasional challenges. Overall, the company is well-positioned in the packaged foods industry with opportunities for further profitability enhancements.

Income Statement

Hatsun Agro Product Limited shows a strong revenue growth trajectory with a revenue growth rate of 8.9% for the most recent year. The gross profit margin is robust at 30.7%, indicating efficient cost management. Net profit margin stands at 3.2%, suggesting room for improvement. EBIT and EBITDA margins at 27.8% and 11.6%, respectively, highlight solid operational performance.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.5, indicating balanced leverage. Return on Equity (ROE) is 16.2%, showing effective use of equity to generate profits. The equity ratio is 35.3%, signifying a stable financial structure but with potential risk due to significant liabilities.

Cash Flow

Free cash flow growth is strong, recovering from negative values to a solid 7.9 billion. Operating cash flow to net income ratio is healthy at 5.2, indicating efficient cash generation relative to net income. However, historical volatility in free cash flow suggests potential cash flow management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	92.70B	87.00B	79.90B	72.47B	63.54B	55.62B
Gross Profit	26.66B	26.68B	13.39B	20.64B	19.24B	17.41B
EBITDA	11.26B	10.10B	9.22B	7.12B	7.31B	8.04B
Net Income	3.29B	2.79B	2.67B	1.66B	2.18B	2.46B
Balance Sheet
Total Assets	44.29B	48.65B	47.35B	37.06B	35.42B	31.17B
Cash, Cash Equivalents and Short-Term Investments	719.60M	710.10M	516.72M	402.27M	379.25M	377.58M
Total Debt	20.11B	25.70B	26.98B	17.93B	19.39B	16.22B
Total Liabilities	26.00B	31.47B	31.62B	22.65B	24.33B	20.96B
Stockholders Equity	18.29B	17.18B	15.72B	14.41B	11.09B	10.22B
Cash Flow
Free Cash Flow	8.29B	7.93B	-6.07B	2.70B	-163.25M	1.01B
Operating Cash Flow	10.62B	14.50B	-714.57M	7.41B	5.76B	5.18B
Investing Cash Flow	-2.40B	-8.82B	-3.88B	-4.41B	-5.65B	-4.18B
Financing Cash Flow	-8.32B	-5.64B	4.74B	-3.00B	-82.22M	-1.06B

Hatsun Agro Product Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 978.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HATSUN, the sentiment is Positive. The current price of 978.1 is above the 20-day moving average (MA) of 917.21, above the 50-day MA of 917.80, and above the 200-day MA of 948.07, indicating a bullish trend. The MACD of 11.57 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HATSUN.

Hatsun Agro Product Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATACONSUM	71 Outperform	₹1.06T	76.67	―	0.70%	15.34%	14.67%
VADILALIND	68 Neutral	₹33.69B	-5,541.37	―	0.42%	11.81%	-12.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HERITGFOOD	62 Neutral	₹29.76B	30.82	―	0.54%	9.83%	-0.92%
HATSUN	61 Neutral	₹217.77B	89.83	―	0.61%	10.61%	7.97%
BECTORFOOD	61 Neutral	₹58.36B	46.45	―	0.45%	10.82%	-8.21%
PARAGMILK	61 Neutral	₹25.25B	30.64	―	0.33%	13.73%	32.07%

Hatsun Agro Product Limited Corporate Events

Hatsun Agro Files Action Taken Report on Accidental WhatsApp Disclosure by CFO

Hatsun Agro Product Limited has submitted an action taken report to the stock exchanges regarding a temporary and unintentional posting of financial information on a WhatsApp status by its Chief Financial Officer. The report, prepared by the company’s Insider Trading Investigation Committee under SEBI’s Prohibition of Insider Trading framework and the firm’s own code of conduct, outlines the incident as a compliance matter rather than a trading-related violation, indicating there were no associated share transactions or promoter group involvement and underscoring the company’s effort to formally address and record the lapse with regulators.