KRChoksey' is bullish on Hatsun Agro Ltd has recommended accumulate rating on the stock with a target price of Rs 693 in its research report dated July 14, 2017.
KRChoksey's research report on Hatsun Agro Ltd
Revenue in Q1FY18 stood at INR 11687.4 Mn which was a growth of 12.8% yoy and de-growth of 4% qoq due to summer season from April to June where production is lower as compared to other quarters. however, sales remains above our estimates. EBIDTA reported was INR 1033.6 Mn with growth of 23.8% yoy and de-growth of 11.8% qoq due to increase in price of milk and lower production. EBIDTA margins stood at 8.8% in Q1FY18 as compared to 8.1% in Q1FY17 and 9.6% in Q4FY17.PAT remained around INR 352.2 Mn with growth of 18.9% yoy and de-growth of 18.7% qoq. PAT margins stood at 3.0% in Q1FY18 as compared to 2.9% in Q1FY17 and 3.6% in Q4FY17.
We remain optimistic for the growth of company and also factors which leads to expansion in industry as India being a largest producer and Consumer of Dairy, rise in demand for different products, increase indisposable income, shift of unorganized to organized sector will bring in the progress of the dairy sector in India. At CMP of INR 652, we recommend ‘ACCUMULATE’ rating on the stock with the target price of INR 693 and upside of 6.3%.
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