Hatsun Agro Products shares zoom over 12% after Q1 results
Hatsun Agro Products rallied over 12% to Rs 1,095 in Thursday's trade after the company reported a 54.2% rise in its net consolidated profit to Rs 80.2 crore during Q1FY24 as against Rs 52 crore during the corresponding quarter of the previous fiscal. Meanwhile, the revenue of the company witnessed a 7% year-on-year (YoY) increase from Rs 2,014.6 crore to Rs 2,150.6 crore. The company also declared an interim dividend of Rs 6 per share (600%) on the fully paid-up equity shares of face value of Re 1 each.
The firm has fixed July 27 as the record date for the payment of the interim dividend, which will be paid on or before August 18, 2023. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Hatsun Agro Products was up by 33.5% to Rs 237.9 crore from Rs 178.2 crore during Q1FY23. The margin of the company also improved from 8.9% to 11.1% during the quarter ended June 2023.
At 10.33 am, the scrip was trading 8% higher at Rs 1,053.5 over its last day's closing price of Rs 976 apiece. On a year-to-date basis, the stock has surged 17%. Domestic brokerage ICICI Securities maintained a 'Hold' rating on Hatsun Agro Products with a target price of Rs 1,000.
«We are enthused by the EBITDA margin expansion posted by Hatsun in Q1FY24 YoY. Correction in milk procurement price has resulted in a gross margin expansion of 110bps QoQ. We model the full benefits of lower input prices to be visible in Q2FY24,» ICICI Securities said.
«We remain positive on Hatsun structurally due to competitive advantages such as brands, distribution and milk procurement. We also believe it is likely to benefit from a favourable milk cycle for dairy companies. However, we need more safety on valuations and retain a 'HOLD' rating,»
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