Chennai, India – May 29, 2025 – Hatsun Agro Product Ltd. (HAP), a prominent name in the Indian FMCG sector, particularly renowned for its dairy products, is currently in the spotlight. The company’s stock (HATSUN-E) recently experienced a notable surge, climbing +₹48.00 (+5.38%) to trade at ₹940.00. This uptick draws attention to its underlying financials, growth trajectory, and overall market standing. This article provides a comprehensive analysis based on the latest available data.
Hatsun Agro, with a significant market capitalization of ₹20,863 Cr, ranks as the 10th largest company out of 116 in the competitive FMCG sector. This underscores its substantial presence and influence in the market.
Valuation Metrics: A Closer Look
Hatsun Agro’s current valuation metrics present a mixed picture that warrants careful consideration by investors:
- P/E Ratio: Standing at a high 72.35, this suggests investors are paying a premium for its earnings compared to the broader market.
- PEG Ratio: At 10.64, this ratio, which compares the P/E to earnings growth, also indicates a high valuation relative to its expected growth rate.
- EV/EBITDA: The Enterprise Value to EBITDA is 22.64, while EV to EBIT is 41.84. These figures are often considered on the higher side, reflecting significant market expectations.
- EV to Sales: At 2.65, this metric provides another angle on its market valuation relative to its revenue generation.
While these numbers point towards a premium valuation, the company’s qualitative assessments offer some context. Hatsun Agro is rated as having “Good” growth prospects and “Good” management risk, factors that can contribute to higher valuation multiples. However, its “Average” capital structure is also a point to note.
Performance and Profitability
- Return on Equity (ROE): The latest ROE stands at a healthy 17.48%, indicating efficient use of shareholders’ equity to generate profits.
- 1-Year Stock Return: Over the past year, Hatsun Agro’s stock has delivered a return of -8.49%. This contrasts with the Nifty FMCG sector return of -0.1% and the broader market (represented by a benchmark like Nifty 50) return of 9.34% over the same period, indicating recent underperformance relative to both its sector and the market.
- Recent Price Action: The latest daily gain of +5.38% to ₹940.00 comes after a period of consolidation and a longer-term downtrend observed from late 2024/early 2025. This surge, on increased volume, suggests renewed investor interest and could mark a potential short-term turning point. The stock had found a bottom around the ₹800-₹840 levels in March/April 2025 before this recent recovery.
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Dividend and Market Position
Hatsun Agro offers a dividend yield of 0.65%, providing a modest income stream for its investors. Its strong market position as a top 10 FMCG player provides it with a solid foundation for future endeavours.
Looking Ahead
The key question for investors is whether Hatsun Agro’s “Good” growth prospects and strong market presence can justify its current high valuation multiples, especially in light of its -8.49% return over the past year. The recent positive momentum in the stock price is a welcome sign for shareholders, but sustained growth in earnings and improved market sentiment will be crucial for a more significant re-rating.
Investors will be closely watching if the company can translate its strong brand portfolio (including well-known brands like Arokya, Arun Icecreams, Hatsun Curd, Hatsun Paneer, Hatsun Ghee, Hatsun Dairy Whitener, and Ibaco) and extensive distribution network into improved financial performance that aligns with its current market valuation.
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Hatsun Agro Stock Analysis
HATSUN-E’s stock price has recently demonstrated a notable technical development, characterized by a significant bullish breakout from a consolidation phase that persisted for several months. This breakout follows a prolonged period of downtrend. The upward movement on the most recent trading day was accompanied by substantial volume, a factor that often lends credibility to such breakouts and suggests the potential for a near-term reversal of the preceding bearish trend.
The core findings of this analysis will focus on the transitionary period observed in HATSUN-E’s price action, moving from a discernible downtrend into what could be an emerging uptrend. Critical support and resistance levels, derived from historical price activity, will be identified and discussed in terms of their potential influence on future price movements. Furthermore, the implications of recent volume patterns, particularly the surge during the breakout, will be examined.
Based purely on the technical evidence presented in the daily chart, the overall technical stance for HATSUN-E is cautiously optimistic. This optimism is contingent upon the market’s confirmation of the recent breakout, specifically the stock’s ability to maintain its position above the breached resistance level and successfully navigate upcoming areas of potential supply.
Key Support and Resistance Levels for HATSUN-Agro
| Level Type | Price Zone | Significance/Rationale |
|---|---|---|
| Support 1 | ~920.00 – 940.00 | Recent breakout point, former consolidation top. Critical. |
| Support 2 | ~880.00 | Intra-consolidation level. |
| Support 3 | ~800.00 – 820.00 | Consolidation base, major recent low. |
| Support 4 | ~760.00 | Extreme low on chart. |
| Resistance 1 | ~960.00 | Minor previous swing high. |
| Resistance 2 | ~1000.00 – 1040.00 | Major former support, now key resistance. High congestion. |
| Resistance 3 | ~1080.00 – 1120.00 | Previous consolidation/support zone during downtrend. |
| Resistance 4 | ~1200.00 / ~1280.00 | Significant prior highs / peak of charted period. |
Frequently Asked Questions (FAQ) for Hatsun Agro Stock
What is Hatsun Agro’s current P/E ratio?
As of the latest data, Hatsun Agro’s P/E ratio is 72.35, which is considered high, suggesting strong investor expectations for future earnings growth.
How has Hatsun Agro’s stock performed recently?
Hatsun Agro’s stock recently saw a significant single-day gain of +5.38%, closing at ₹940.00. However, its 1-year return is -8.49%, underperforming both its sector and the broader market average during that period.
What are the growth prospects for Hatsun Agro?
Hatsun Agro is assessed as having “Good” growth prospects and “Good” management risk. The company is a major player in the Indian dairy industry, ranking 10th in the FMCG sector by market cap.
What is Hatsun Agro’s Return on Equity (ROE)?
Hatsun Agro’s latest Return on Equity (ROE) is 17.48%, indicating a good level of profitability relative to shareholder equity.
Does Hatsun Agro pay a dividend?
Yes, Hatsun Agro offers a dividend, with a current dividend yield of 0.65%.