Hatsun Agro Product Ltd is Rated Hold by MarketsMOJO

Current Rating and Its Implications for Investors

MarketsMOJO's 'Hold' rating on Hatsun Agro Product Ltd suggests a balanced outlook for investors. It indicates that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors should consider maintaining their positions without expecting significant near-term gains or losses, while monitoring the company’s evolving fundamentals and market conditions.

Quality Assessment: Average Fundamentals

As of 25 December 2025, Hatsun Agro Product Ltd exhibits an average quality grade. The company’s recent quarterly results demonstrate robust profitability growth, with a profit before tax (PBT) excluding other income reaching ₹143.27 crores, reflecting a 77.14% increase. Net profit after tax (PAT) also rose by 70.3% to ₹109.54 crores. These figures highlight operational efficiency and effective cost management.

However, despite these encouraging profit trends, the company’s overall quality rating remains average due to consistent underperformance relative to broader market benchmarks. Over the past three years, Hatsun Agro has lagged behind the BSE500 index, delivering a negative 1.92% return over the last year. This underperformance tempers the otherwise positive earnings growth.

Valuation: Fair but Discounted Compared to Peers

The valuation grade for Hatsun Agro Product Ltd is fair. The stock trades at an enterprise value to capital employed (EV/CE) ratio of 6.3, which is modest and suggests a reasonable price relative to the company’s capital base. Its return on capital employed (ROCE) stands at 16.7%, indicating efficient use of capital to generate profits.

Importantly, the stock is currently trading at a discount compared to its peers’ historical valuations, offering a potentially attractive entry point for investors seeking value. The price-to-earnings-to-growth (PEG) ratio is 3.4, signalling that while earnings growth is solid, the stock’s price may be somewhat stretched relative to its growth prospects.

Financial Trend: Positive Momentum

The financial trend for Hatsun Agro Product Ltd is positive, supported by strong quarterly earnings growth and improving profitability ratios. The company’s operating profit to interest ratio reached a high of 8.66 times in the latest quarter, underscoring its ability to comfortably cover interest expenses from operating earnings.

Profit growth of 17.9% over the past year further reinforces the company’s upward financial trajectory. Despite this, the stock’s year-to-date (YTD) return is slightly negative at -1.59%, reflecting broader market volatility and sector-specific challenges.

Technicals: Mildly Bullish Signals

From a technical perspective, the stock exhibits mildly bullish characteristics. Recent price movements show modest gains, with a 0.56% increase on the latest trading day and a 9.99% rise over the past three months. However, the one-month performance shows a decline of 4.93%, indicating some short-term volatility.

These mixed signals suggest cautious optimism among traders, with the stock potentially poised for moderate upward movement but still vulnerable to market fluctuations.

Stock Returns and Market Performance

As of 25 December 2025, Hatsun Agro Product Ltd’s stock returns present a nuanced picture. The stock has delivered a 1-year return of -1.92%, underperforming the BSE500 benchmark consistently over the last three years. The 6-month return is positive at 6.34%, and the 3-month return is even stronger at 9.99%, indicating some recovery in recent months.

Year-to-date, the stock is down by 1.59%, reflecting a challenging environment for the FMCG sector amid inflationary pressures and changing consumer behaviour. The stock’s small-cap status also contributes to its higher volatility compared to larger peers.

Ownership and Corporate Governance

Promoters remain the majority shareholders of Hatsun Agro Product Ltd, which typically provides stability and alignment of interests with long-term investors. The company’s governance practices have supported steady operational performance, although investors should continue to monitor any changes in shareholding patterns or management strategies.

What the Hold Rating Means for Investors

The 'Hold' rating reflects a balanced view of Hatsun Agro Product Ltd’s prospects. Investors are advised to maintain their current holdings while keeping a close watch on the company’s financial performance and market developments. The stock’s fair valuation and positive financial trends offer some support, but the average quality grade and recent underperformance caution against aggressive accumulation at this stage.

For those considering new investments, the stock may be more suitable for investors with a medium-term horizon who are comfortable with moderate risk and volatility inherent in small-cap FMCG stocks.

Summary

In summary, Hatsun Agro Product Ltd’s current 'Hold' rating by MarketsMOJO, updated on 11 Nov 2025, is underpinned by average quality fundamentals, fair valuation metrics, positive financial trends, and mildly bullish technical signals. While the stock has faced challenges in outperforming benchmarks, recent profit growth and valuation discounts provide a foundation for cautious optimism. Investors should weigh these factors carefully in the context of their portfolio objectives and risk tolerance.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today