KRChoksey recommended hold rating on Hatsun Agro with a target price of Rs 752 in its research report dated June 07, 2018.
KRChoksey's research report on Hatsun Agro
Hatsun Agro Ltd reported its Q4FY18 results, revenue stood at INR of 10.5 Bn (-13.6% YoY) due to subdued volume growth. EBIDTA stood at INR 756.2 Mn (-22.5% YoY), with OPM at 7.2% (-83 bps). The de-growth in margins were mainly due to higher operating expenses (+20.4% YoY). EBIDTA for FY18 stood at INR 3.7 Bn (-1.7% YoY), with OPM at 8.7% (-34 bps YoY). PAT for Q4FY18 stood at INR 24.8 Mn (-94% YoY), with NPM at 0.2% (-303 bps YoY).
Outlook
At CMP of INR 720, the stock is trading at P/E of 89.5x for FY20E. We assign a P/E multiple of 93.5x and recommend ‘HOLD’ rating on the stock with the target price of INR 752 representing an upside of 4.5%.
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