Hatsun Agro Product Limited

Consumer Defensive — Packaged Foods · NSE

₹1,161.00+₹15.40 (+1.34%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Hatsun Agro Product Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hatsun Agro Product Limited engages in the manufacture and marketing of milk, milk products, and cattle feed in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees5,702

Annual revenue₹9,946 Cr

How does it make money?

Turns over ₹9,946 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 5,702 employees supports ₹1.74 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.74 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 5.7% and earnings to grow about 20.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.7%

Est. earnings growth+20.6%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +38% while net margin moved +56% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+38%

Margin effect+56%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 72.9x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 81.0x
✗ P/B of 13.33x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

34/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

72.9x

3Y Median

81.0x

40 monthly readings · mean 99.7x · range 68.7x–163.4x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 10% below its 3y median of 81.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 41% above the peer median of 51.7x.

vs. its own history

Fair

81.0x median over 40 months · -10%

vs. sector peers

Expensive

51.7x median of 4 peers · +41%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

23.3x

PEG

2.51

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 9.7% to 12.0% over 3 years.
Cash generation is improving
Free cash flow is up 314% over 3 years.
Return on equity is rising
ROE has improved from 11.5% to 18.3%.
Return on capital is rising
ROCE has improved from 13.7% to 20.2%.
High return on capital employed
ROCE of 20.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.52 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.7% to 12.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 41% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 11.2% CAGR
Latest reported year was 19.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,118 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹25,861 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

72.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.92

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

20.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.95x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-1.2%

Falling

Profits are shrinking

Dividend Yield

1.72%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,118 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

43.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.5%

Average

Average margins

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

0.52

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.03

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1134.4 / 1103.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,228 Cr	₹7,975 Cr	₹8,684 Cr	₹9,946 Cr	+11.2%
EBITDA	₹704 Cr	₹903 Cr	₹1,022 Cr	₹1,189 Cr	+19.1%
EBITDA Margin	9.7%	11.3%	11.8%	12.0%	—
PAT (Net Profit)	₹166 Cr	₹267 Cr	₹279 Cr	₹356 Cr	+29.0%
EPS	₹7.54	₹12	₹12.51	₹15.99	+28.5%
ROE	11.5%	17.0%	16.2%	18.3%	—
ROCE	13.7%	17.7%	18.2%	20.2%	—
Total Debt	₹1,793 Cr	₹2,698 Cr	₹2,570 Cr	₹1,838 Cr	+0.8%
Free Cash Flow	₹270 Cr	-₹607 Cr	₹793 Cr	₹1,118 Cr	+60.6%

🟢 Revenue has grown at 11.2% a year over 3 years.

🟢 EBITDA has grown at 19.1% a year over 3 years.

🟢 EBITDA Margin has risen from 9.7% to 12.0% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 29.0% a year over 3 years.

🟢 EPS has grown at 28.5% a year over 3 years.

🟢 ROE has risen from 11.5% to 18.3% over 3 years (+6.8 pts).

🟢 ROCE has risen from 13.7% to 20.2% over 3 years (+6.5 pts).

🟡 Total Debt has been broadly flat over 3 years (0.8% a year).

🟢 Free Cash Flow has grown at 60.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,443 Cr

Total Liabilities

₹2,498 Cr

Cash & Equivalents

₹49 Cr

Operating Cash Flow

₹1,557 Cr

Capex

-₹439 Cr

Shareholding (proxy)

Institutional Holding

10.6%

Insider Holding

78.3%

Corporate Actions

Next Earnings

26 Oct 2026

Dividend Rate

₹20

Ex-Dividend Date

26 May 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹931

-19.8% vs CMP

Target Range

₹862 – ₹1,000

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive1 mixed4 general

Compare with HATSUN AGRO PRODUCTS

Equitymaster, 14 Oct

Hatsun Agro Product Limited (NSE:HATSUN) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 22 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Hatsun Agro targets revenue of 120 billion rupees by FY27

scanx.trade, 12 Oct

Does Hatsun Agro Product (NSE:HATSUN) Deserve A Spot On Your Watchlist?

Simply Wall Street, 11 Sept

Hatsun Agro Product Share Price: Price Action and Valuation

Univest, 27 Aug

Shareholders Can Be Confident That Hatsun Agro Product's (NSE:HATSUN) Earnings Are High Quality

Simply Wall Street, 27 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Risk

MiddlingBusiness Quality · Financial Health

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑