ICICI Securities released a research note on April 23, 2024, upgrading Hatsun Agro Products Ltd. to a 'Buy' and setting a target price of Rs 1190 per share. The brokerage highlighted the company's strong foothold in India's dairy segment, which has been benefitting from rising per-capita consumption and a favourable export environment. The recommendation comes as the Nifty Consumer Staples index has been outperforming the broader market, drawing attention from retail investors.
The analyst team cited several growth drivers: a consistent double-digit revenue expansion over the last three fiscal years, improved operational efficiency through its integrated milk-collection network, and a strategic push into value-added products such as cheese and yogurt. Hatsun's recent quarterly results showed a 15% jump in net profit and a healthy cash conversion cycle, reinforcing confidence in its ability to sustain margins despite volatile milk prices. From a market perspective, the upgrade could add a modest boost to the dairy sub-sector and may help lift the Nifty Consumer Staples index, which has been hovering around the 45,000-45,200 level. 2%.
However, investors should monitor raw material cost pressure and competition from larger players such as Amul and Mother Dairy. Overall, the Rs 1190 target suggests upside potential, but prudent investors should balance the stock’s valuation against sector risks before allocating a meaningful portion of their portfolio.