Largest Private-sector Dairy Company Acquires 99.89 per cent Stake in Milk Mantra Dairy for Rs 232.88 Crores - Details Inside!
With a PE ratio of 68.4x, the company trades at a premium compared to the industry PE of 29.4x. The company has ROCE of 13.2 per cent and ROE of 17 per cent.
Hatsun Agro Product Limited (HAP) has successfully completed a significant acquisition of shares in Milk Mantra Dairy Private Limited. As of March 10, 2025, HAP has acquired an additional 2,500 equity shares of Rs. 10 each, further solidifying its stake in the target company. This transaction involved a gross purchase consideration of Rs. 0.08 crores. Cumulatively, HAP has now purchased 31,64,056 equity shares and 16,06,372 compulsorily convertible preference shares, amounting to a total purchase consideration of Rs. 232.88 crores. This acquisition represents 99.89% of the current issued and paid-up equity and preference share capital of Milk Mantra Dairy Private Limited. The acquisition is part of HAP's strategic initiatives to expand its footprint in the dairy sector, enhancing its product portfolio and market presence.
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Hatsun Agro Product Limited, a prominent player in the Indian dairy industry, is currently trading at a stock price of Rs. 884. The company has a market capitalisation of Rs. 19,685 crores. Over the past year, the stock has experienced a decline, with a 1-year return of -21.95 per cent and a 3-year return of -19.17 per cent. The stock's 52-week high stands at Rs. 1,380, while the 52-week low is Rs. 869.2. Hatsun Agro Product Limited continues to focus on strategic acquisitions and expansions to strengthen its position in the agro and dairy sectors. The company has been maintaining a healthy dividend payout of 63.3 per cent.
In the Quarterly Results of December 2024, the revenue stood at Rs 2,009.75 crore, reflecting a YoY growth of 6.48 per cent but a QoQ decline of 3.01 per cent from Rs 2,072.10 crore in September 2024. The net profit for the quarter was Rs 40.94 crore, marking a decline of 28.68 per cent YoY and 36.35 per cent QoQ. The net profit margin for the quarter was 2.04 per cent, compared to 3.10 per cent in September 2024 and 3.04 per cent in December 2023.
For the full financial year FY24, the revenue stood at Rs 7,990.40 crore, registering a growth of 10.26 per cent from Rs 7,246.97 crore in FY23. The net profit for FY24 was Rs 287.95 crore, reflecting a growth of 57.58 per cent compared to Rs 244.71 crore in FY23. The net profit margin for FY24 improved to 3.06 per cent from 2.14 per cent in FY23.
As of December 2024, the shareholding pattern of the company shows that Promoters hold 73.17 per cent, Foreign Institutional Investors (FIIs) hold 3.38 per cent, Domestic Institutional Investors (DIIs) hold 9.99 per cent, and the Public holds 13.45 per cent. The number of shareholders stands at 37,677. There are no significant changes in shareholding compared to the previous quarter.
With a PE ratio of 68.4x, the company trades at a premium compared to the industry PE of 29.4x. The company has ROCE of 13.2 per cent and ROE of 17 per cent.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.