Value Added Product Mix Shift
Expected: FY25-FY26HIGH confidence
What: VAP Share: 31%
Impact: 150 bps margin expansion
Hatsun Agro Product Ltd: Why Is It Outperforming Nifty 500?
ActiveWeak4w StreakRe-Entry
In , Hatsun Agro Product Ltd (FMCG - Dairy Products) is outperforming Nifty 500 with +9.4% relative strength. Fundamentals: Weak. On a 4-week streak.
Hatsun Agro Product Ltd Key Facts
- PE Ratio
- 63.2x
- Market Cap
- ₹22,026 Cr
- PAT Growth YoY
- +49%
- Revenue Growth YoY
- +18%
- OPM
- 11.0%
- RS vs Nifty 500
- +9.4%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 22% YoY — balance sheet strengthening
💰Trading 26% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
FY25-FY26HIGH
2. Interest Cost Reduction Deleveraging
OngoingMEDIUM
Key Risks
1. Volatility in raw milk procurement prices due to fodder inflation and seasonal v
HIGH2. Unseasonal rains affecting milk production and logistics in South India
MEDIUMSector-Specific Signals
Average Milk Procurement3.6 Mn Liters/Day7%
Value Added Products Mix31%200 bps
Hatsun Daily Outlets3,80015%
Interest Coverage Ratio8.3x1.2x
Key Numbers
PAT Growth YoY
+49%
Inflection Up
Revenue YoY
+18%
Stable
Operating Margin
11.0%
0 bps YoY
PE Ratio
63.2
Current Price
₹989
Dividend Yield
0.61%
Fundamental Score
38/100
Weak
3Y PAT CAGR
+22%
Market Cap
22.0K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Hatsun Agro Product Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Interest Cost Reduction Deleveraging
Expected: OngoingMEDIUM confidence
What: Debt-to-Equity: 0.8x
Impact: INR 40 Cr annual interest saving
What Are the Key Risks for Hatsun Agro Product Ltd?
Earnings deceleration risks from management commentary
Volatility in raw milk procurement prices due to fodder inflation and seasonal v
HIGHTrigger: Volatility in raw milk procurement prices due to fodder inflation and seasonal variations.
Impact: PAT impact: 8-10%
Management view: Increasing direct procurement from farmers to bypass middlemen.
Monitor: commodity
Unseasonal rains affecting milk production and logistics in South India
MEDIUMTrigger: Unseasonal rains affecting milk production and logistics in South India.
Impact: PAT impact: 5%
Management view: Investing in climate-controlled chilling centers.
Monitor: climate
What Did Hatsun Agro Product Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 2,330.46 Cr
YoY +11.1%QoQ -3.8%
Revenue growth was driven by steady demand in the curd and ice cream segments despite seasonal moderation in milk procurement prices.
EBITDA
INR 285.40 Cr
YoY +14.5%Margin 12.25%
Margin expansion reflects the shift towards value-added products like curd and branded milk over commodity sales.
PAT
INR 62.10 Cr
YoY +21.8%QoQ -8.5%
PAT growth outpaced revenue due to operational efficiencies and a reduction in the cost of debt.
Other Highlights
• Milk procurement averaged 3.6 million liters per day during the peak flush season.
• Interest costs declined by 12% YoY to INR 34.2 crore.
• Retail network expanded to over 3,800 Hatsun Daily outlets.
What Sector Metrics Matter for Hatsun Agro Product Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Average Milk Procurement
3.6 Mn Liters/Day
YoY 7%QoQ 12%
Why: Flush season led to higher availability of raw milk.
Value Added Products Mix
31%
YoY 200 bpsQoQ Not Given
Why: Increased sales of curd and ice cream brands like Arun and Ibaco.
Hatsun Daily Outlets
3,800
YoY 15%QoQ 3%
Why: Aggressive expansion in Tier-2 cities in Tamil Nadu and Karnataka.
Interest Coverage Ratio
8.3x
YoY 1.2xQoQ Not Given
Why: Improved EBITDA and reduced debt levels.
What Is Hatsun Agro Product Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
13.5%
OPM Guidance
13%
Capex Plan
₹450 Cr
Revenue Outlook
12-15%
Margin Outlook
Aiming for gradual margin improvement through value-added mix.
Capex Plan
INR 450 Cr
New milk processing plant in Andhra Pradesh and ice cream capacity in Govindapur.
Volume
Expecting 8-10% volume growth in milk procurement.
Management Tone: BULLISH
How Fast Is Hatsun Agro Product Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +14% | Stable |
| PAT (Net Profit) | +49% | +22% | Inflection Up |
| OPM | 11.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Hatsun Agro Product Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Hatsun Agro Product Ltd's latest quarterly results?
Hatsun Agro Product Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +48.8% (turning around (inflection up))
- Revenue Growth YoY: +17.6%
- Operating Margin: 11.0% (expanding)
Is Hatsun Agro Product Ltd's profit growing or declining?
Hatsun Agro Product Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +48.8% (latest quarter)
- PAT Growth QoQ: -44.5% (sequential)
- 3-Year PAT CAGR: +21.7%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Hatsun Agro Product Ltd's revenue growth trend?
Hatsun Agro Product Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +17.6%
- Revenue Growth QoQ: -2.6% (sequential)
- 3-Year Revenue CAGR: +14.4%
How is Hatsun Agro Product Ltd's operating margin trending?
Hatsun Agro Product Ltd's operating margin is expanding.
- Current OPM: 11.0%
- OPM Change YoY: 0.0% basis points
- OPM Change QoQ: -2.0% basis points
What is Hatsun Agro Product Ltd's 3-year profit and revenue CAGR?
Hatsun Agro Product Ltd's long-term compounding rates
- 3-Year Profit CAGR: +21.7%
- 3-Year Revenue CAGR: +14.4%
Is Hatsun Agro Product Ltd's growth accelerating or decelerating?
Hatsun Agro Product Ltd's earnings growth is turning around (inflection up) with weakening on a sequential basis.
- YoY Acceleration: -23.1% bps
- Sequential Acceleration: -26.0% bps
What is Hatsun Agro Product Ltd's trailing twelve month (TTM) performance?
Hatsun Agro Product Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹349 Cr
- TTM PAT Growth: +21.2% YoY
- TTM Revenue: ₹10,000 Cr
- TTM Revenue Growth: +13.2% YoY
- TTM Operating Margin: 12.1%
Is Hatsun Agro Product Ltd overvalued or undervalued?
Hatsun Agro Product Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 63.2x
- Price-to-Book: 12.1x
What is Hatsun Agro Product Ltd's current PE ratio?
Hatsun Agro Product Ltd's current PE ratio is 63.2x.
- Current PE: 63.2x
- Market Cap: 22.0K Cr
- Dividend Yield: 0.61%
How does Hatsun Agro Product Ltd's valuation compare to its history?
Hatsun Agro Product Ltd's current PE is 63.2x.
- Current PE: 63.2x
- Valuation Assessment: Significantly Overvalued
What is Hatsun Agro Product Ltd's price-to-book ratio?
Hatsun Agro Product Ltd's price-to-book ratio is 12.1x.
- Price-to-Book (P/B): 12.1x
- Book Value per Share: ₹82
- Current Price: ₹989
Is Hatsun Agro Product Ltd a fundamentally strong company?
Hatsun Agro Product Ltd is rated Weak with a fundamental score of 38.11/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +17.6% (10% weight)
- PAT Growth YoY: +48.8% (10% weight)
- PAT Growth QoQ: -44.5% (10% weight)
- Margins expanding (10% weight)
Is Hatsun Agro Product Ltd debt free?
Hatsun Agro Product Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹2,000 Cr
What is Hatsun Agro Product Ltd's return on equity (ROE) and ROCE?
Hatsun Agro Product Ltd's return ratios over recent years
- FY2010: ROCE 12.0%
- FY2025: ROCE 13.0%
Is Hatsun Agro Product Ltd's cash flow positive?
Hatsun Agro Product Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹1,000 Cr
- Free Cash Flow (FCF): ₹571 Cr
- CFO/PAT Ratio: 520% (strong cash conversion)
What is Hatsun Agro Product Ltd's dividend yield?
Hatsun Agro Product Ltd's current dividend yield is 0.61%.
- Dividend Yield: 0.61%
- Current Price: ₹989
Who holds Hatsun Agro Product Ltd shares — promoters, FII, DII?
Hatsun Agro Product Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.2%
- FII (Foreign): 3.1%
- DII (Domestic): 10.3%
- Public: 13.4%
Is promoter holding increasing or decreasing in Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.2% (Mar 2026)
- Previous Quarter: 73.2% (Dec 2025)
- Change: 0.00% (stable)
How long has Hatsun Agro Product Ltd been outperforming Nifty 500?
Hatsun Agro Product Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Hatsun Agro Product Ltd a new momentum entry or an established outperformer?
Hatsun Agro Product Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift — VAP products carry significantly higher margins than liquid milk.
- Interest Cost Reduction Deleveraging — Lower interest burden provides a direct cushion to PAT.
What are the key risks in Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd has 2 key risks worth monitoring
- [HIGH] Volatility in raw milk procurement prices due to fodder inflation and seasonal v — Volatility in raw milk procurement prices due to fodder inflation and seasonal variations.
- [MEDIUM] Unseasonal rains affecting milk production and logistics in South India — Unseasonal rains affecting milk production and logistics in South India.
What is Hatsun Agro Product Ltd's management guidance for growth?
Hatsun Agro Product Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 13.5%
- OPM guidance: 13%
- Capex plan: ₹450 Cr for New milk processing plant in Andhra Pradesh and ice cream capacity in Govindapur.
- Management tone: bullish
What sector-specific metrics matter most for Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd's most important sub-sector-specific KPIs from the latest concall
- Average Milk Procurement: 3.6 Mn Liters/Day (YoY 7%) (QoQ 12%) — Flush season led to higher availability of raw milk.
- Value Added Products Mix: 31% (YoY 200 bps) (QoQ Not Given) — Increased sales of curd and ice cream brands like Arun and Ibaco.
- Hatsun Daily Outlets: 3,800 (YoY 15%) (QoQ 3%) — Aggressive expansion in Tier-2 cities in Tamil Nadu and Karnataka.
- Interest Coverage Ratio: 8.3x (YoY 1.2x) (QoQ Not Given) — Improved EBITDA and reduced debt levels.
Is Hatsun Agro Product Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Hatsun Agro Product Ltd may be worth studying
- Earnings growing at +48.8% YoY
- Operating margins are expanding — OPM at 11.0%
- Cash flow is positive — CFO ₹1,000 Cr
What is the investment thesis for Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +17.6% YoY
- Margins expanding
- Growth catalyst: Value Added Product Mix Shift
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Volatility in raw milk procurement prices due to fodder inflation and seasonal v
What is the future outlook for Hatsun Agro Product Ltd?
Hatsun Agro Product Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Significantly Overvalued
- Key Catalyst: Value Added Product Mix Shift
- Key Risk: Volatility in raw milk procurement prices due to fodder inflation and seasonal v
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.