BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Takeaways from Hatsun Agro Products Ltd.'s Q2 FY23:
Revenue growth of 6.9% YoY is largely price led and we believe volumes were flat YoY. Unprecedented and prolonged rains in South India also impacted procurement,
With higher milk procurement prices, Hatsun’s Ebitda margin declined 268 bps YoY but we remain enthused with sequential recovery in margins. We believe the margins have bottomed out in H1 FY23 and model recovery from H2 FY23 and
Hatsun plans to incur capex of Rs 4.5 billion to expand manufacturing capacities.
We model it to report profit after tax compound annual growth rate of 25.3% over FY22-24E with:
high single-digit growth in milk procurement,
commencement of three new plants and
higher share of -added products.
We remain structurally positive on Hatsun due to its competitive advantages and strong growth opportunity in South India. We cut our earnings estimates to factor in delayed price hikes and weak Q2 FY23.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR