Hatsun Agro (HATSUN)
Fast GrowerFairStock Score: 49/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹980.8 |
| Market Cap | ₹21,847.15 Cr |
| P/E Ratio | 61.72 |
| ROCE | 13.12% |
| ROE | 23.57% |
| Dividend Yield | 2.04% |
| Profit Growth | -9.72% |
| Debt/Equity | 0.95 |
| Sales Growth | 21.87% |
| Free Cash Flow | ₹571 Cr |
| Promoter Holding | 73.17% |
| 52-Week Range | ₹855.3 — ₹1,220.15 |
| Sector | Food Products |
| Book Value | ₹87.12 |
Strengths
- Promoter holding of 73.17% aligns interests with minority shareholders.
- ROE of 23.57% indicates strong capital efficiency.
- Positive free cash flow of ₹571 Cr and Piotroski F-score of 7/9 reflect healthy financials.
- Revenue growth of 15.17% and profit growth of 64% show strong momentum.
Concerns
- P/E of 51.47 and P/B of 13.55 offer no margin of safety.
- Debt/Equity of 1.10 and ROCE of 13.12% show leverage drag.
- Latest quarter net margin is under 3% (₹67 Cr profit on ₹2,315 Cr sales), leaving little buffer for input cost shocks.
- Profit growth of 64% far outpacing sales growth of 15.17% raises sustainability questions.
AI Analysis
At ₹1,009, Hatsun Agro wears a rich price tag. A P/E of 51.47 and a P/B of 13.55 would make Graham reach for antacids. But quality deserves attention. The company earns a 23.57% ROE, and with promoter holding at 73.17%, there is plenty of skin in the game. Sales are up 15.17%, profit up 64%. That divergence is eye-catching but also a warning: profit growth at more than four times sales growth cannot be extrapolated forever. The latest quarter shows net profit of ₹67 Cr on sales of ₹2,315 Cr, a margin of under 3%, so this is a thin-margin business where input costs can hit earnings hard. Free cash flow is genuinely positive at ₹571 Cr, a comfort, but Debt/Equity of 1.10 shows they are not shy about leverage. ROCE of 13.12% is respectable but not exceptional once debt is considered. The Piotroski F-score of 7/9 suggests improving fundamentals, and the PEG ratio of 1.30 implies the market has already priced in a good deal of growth. I like the business, but I require a margin of safety. At 51 times earnings, I would wait for a better price or for earnings to grow into the multiple. If the company can sustain 15% to 20% sales growth while protecting margins, it may prove to be a wonderful business. But a wonderful business at any price is not a wonderful investment. Mr. Market is offering a quality compounder at a full price. I would keep it on my watch list rather than chase it here.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer