Hatsun Agro Q1 Result Review - Lower Milk Procurement Prices Lead To Margin Expansion: ICICI Securities

"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.We are enthused by Ebitda margin expansion posted by Hatsun Agro Products Ltd. in Q1 FY24 YoY. Correction in milk procurement price has resulted in gross margin expansion of 110 basis points QoQ. We model the full benefits of lower input prices to be visible in Q2 FY24. The sale of windmill assets is likely to be value accretive in our view as the return on capital employed on windmill operations was lower than cost of capital. 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 favorable milk cycle for dairy companies. However, we need more safety on valuations and retain 'Hold' rating. We value the stock at target price of Rs 1,000 (implied 50 times FY25E; prior target price: Rs 880) as per discounted cash flow methodology..Click on the attachment to read the full report:.Polycab Q1 Result Review - Strong Net Profit Beat; Earnings Upgrades Could Drive Valuations: Systematix.DISCLAIMERThis 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."

Hatsun Agro Q1 Result Review - Lower Milk Procurement Prices Lead To Margin Expansion: ICICI Securities

Debt repayment post sale of windmill assets.

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Hatsun Agro Q1 Result Review - Lower Milk Procurement Prices Lead To Margin Expansion: ICICI Securities

Debt repayment post sale of windmill assets.

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