Hatsun Agro - In Value Creation Zone: ICICI Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Hatsun Agro Product Ltd. made material investments over FY20–24 that are likely to result in strong value creation over FY24–26E and beyond. We note:Packaged milk realisation is ~20% higher than milk variants of co-operatives. Some peers also offer higher trade incentives than Hatsun. Also, trade pays in advance to Hatsun (before delivery of milk), resulting in negligible debtors – indicates consumers perceive Hatsun’s milk variants as a ‘value-added product’.Govindpur (Telangana) plant’s commencement and investments in HAP Daily (freezer and other furniture and furnishings), reimbursement of electricity bills and rent and investment in ice cream storage units offer multiple competitive advantages to Hatsun versus. peers.SMP accumulation is a prudent move, as it could protect profitability during milk inflation (likely in FY26 in our view).As FY25–26E depreciation will likely be less than capex and sale of SMP will also release resources, we model material debt and interest cost reduction by FY26E..Click on the attachment to read the full report:.Sapphire Foods Q1 Results Review - Leveraging Tactical Interventions To Navigate Uncertainty: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hatsun Agro - In Value Creation Zone: ICICI Securities

The brokerage believes that the company has right-to-win pan-India in the ice cream segment due to its finely crafted business strategies.

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Hatsun Agro - In Value Creation Zone: ICICI Securities

The brokerage believes that the company has right-to-win pan-India in the ice cream segment due to its finely crafted business strategies.

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