January 19, 2017 / 17:37 IST
Hatsun Agro Ltd. reported Q3FY17 results with Net revenue of INR 9468.2 Mn with growth of 13.9% yoy and de-growth of 5.4% qoq which was in-line with our expectation. EBITDA stood at INR 879 Mn with margins of around 9.3% which was above are estimate of 8.7%. PAT for Q3FY17 was at INR 288.7 Mn with margins of 3.0% which was in-line with our estimate of 2.9%.
Outlook
Its products segment focuses on milk, curd, Ice creams, Paneer, Butter, cattle feed etc. as these segment have potential to grow. With the stable brand portfolio currently, Hatsun plans to diversify the portfolio into healthy, tasty and ready to eat foods. At CMP of INR 400, we recommend ‘ACCUMULATE’ rating on the stock with the target price of INR 432 and upside of 8.2%. We value the company at the premium and assign 35x PE multiple to EPS of INR 12.4 in FY19E.
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