Hatsun Agro Product Ltd is Rated Hold

Current Rating Overview

On 11 Nov 2025, MarketsMOJO adjusted Hatsun Agro Product Ltd’s rating from 'Sell' to 'Hold', reflecting a positive shift in the company’s overall outlook. The Mojo Score increased by 13 points, moving from 48 to 61, signalling an improvement in the stock’s quality and market perception. This 'Hold' rating suggests that investors should maintain their current positions, as the stock demonstrates balanced attributes without a strong buy or sell signal at present.

Here’s How the Stock Looks Today

As of 05 January 2026, Hatsun Agro Product Ltd exhibits a mixed but cautiously optimistic profile across key evaluation parameters. The company operates within the FMCG sector and is classified as a small-cap stock, which often entails higher volatility but also potential for growth.

Quality Assessment

The stock holds an average quality grade, indicating a stable but not exceptional business model. Recent financial results support this view, with the company reporting a profit after tax (PAT) of ₹244.73 crores for the latest six months, marking a robust growth rate of 25.59%. Additionally, the operating profit to interest ratio stands at a healthy 8.66 times, underscoring efficient management of debt and operational costs. Profit before tax (PBT) excluding other income has surged by 77.14% to ₹143.27 crores, reflecting strong core earnings growth.

Valuation Perspective

Valuation metrics present a fair picture. The company’s return on capital employed (ROCE) is a respectable 16.7%, which is a positive indicator of capital efficiency. The enterprise value to capital employed ratio is 6.2, suggesting the stock is trading at a discount relative to its peers’ historical valuations. Despite this, the price-to-earnings-to-growth (PEG) ratio is relatively elevated at 3.4, signalling that the market may be pricing in higher growth expectations. Over the past year, the stock has delivered a modest negative return of 3.34%, while profits have increased by 17.9%, highlighting a divergence between earnings growth and share price performance.

Financial Trend

The financial trend for Hatsun Agro Product Ltd is positive. The company’s recent half-yearly results demonstrate strong earnings momentum, supported by efficient cost management and improving profitability ratios. The upward trajectory in PAT and PBT figures indicates that the company is strengthening its financial health, which is a key consideration for investors seeking stability in the FMCG sector.

Technical Outlook

From a technical standpoint, the stock exhibits mildly bullish characteristics. Short-term price movements show some volatility, with a one-day decline of 0.54% and a one-month drop of 6.00%. However, the three-month and six-month returns are positive at 5.56% and 2.21% respectively, suggesting underlying strength. Year-to-date performance is slightly negative at -0.35%, but the overall trend does not indicate any immediate bearish pressure. This technical profile supports the 'Hold' rating, implying that the stock is neither in a strong uptrend nor in a downtrend that would warrant a sell recommendation.

Implications for Investors

For investors, the 'Hold' rating on Hatsun Agro Product Ltd suggests a cautious approach. The company’s fundamentals are solid, with improving profitability and reasonable valuation metrics. However, the stock’s recent price performance and technical indicators do not currently justify a strong buy stance. Investors holding the stock may consider maintaining their positions to benefit from the company’s steady earnings growth, while new investors might wait for clearer signals of upward momentum before committing fresh capital.

Shareholding and Market Position

Promoters remain the majority shareholders, which often provides stability and alignment of interests with minority investors. The company’s position in the FMCG sector, known for resilience and steady demand, adds to its appeal as a defensive stock in a diversified portfolio.

Summary of Key Metrics as of 05 January 2026

• Mojo Score: 61.0 (Hold grade)


• Market Capitalisation: Small-cap


• Profit After Tax (Latest 6 months): ₹244.73 crores (up 25.59%)


• Operating Profit to Interest Ratio: 8.66 times


• Profit Before Tax (excl. other income): ₹143.27 crores (up 77.14%)


• Return on Capital Employed (ROCE): 16.7%


• Enterprise Value to Capital Employed: 6.2


• PEG Ratio: 3.4


• Stock Returns: 1Y -3.34%, 3M +5.56%, 6M +2.21%

Conclusion

Hatsun Agro Product Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced outlook based on its average quality, fair valuation, positive financial trends, and mildly bullish technical signals. Investors should consider this rating as an indication to maintain existing holdings while monitoring the stock for further developments that could prompt a clearer buy or sell decision. The company’s steady earnings growth and reasonable valuation metrics provide a foundation for cautious optimism in the FMCG space.

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