Investors are accumulating this dairy stock before the approval of Rs 400 crore right issue

Yesterday, on November 30, the company announced to schedule a board meeting on December 3 to discuss the approval.

The shares of Hatsun Agro Product Ltd surged 8 per cent and closed trading at Rs 959.3. The stock opened at Rs 901.55 and made an intraday high and low of Rs 998 and Rs 900, respectively. Yesterday, the company announced the schedule of a board meeting on December 3 to discuss the approval of Rs 400 crore right issue. This news has helped the stock to gain upwards momentum today.  

Hatsun Agro Product Ltd is the largest private-sector dairy company in India. The company has established a market position supported by a strong brand, particularly in South India.  

The company owns over 12,000 procurement centres in 14000 villages, as well as cooling and dairy units in its key operating markets. This allows it to reach over 3.5 lakh farmers. Furthermore, the company has an established network of around 3500 own distribution outlets.  

The company has historically shown strong growth in its both financials and stock performance. Its 10-year sales and net profit CAGR stand at 15 per cent and 24 per cent, respectively. Whereas, the stock has delivered a 10-year CAGR of 34 per cent.  

The company has a market capitalisation of Rs 20678 crore and is trading at a PE multiple of 111.75x. The scrip has a 52-week high and low of Rs 1374 and Rs 806.1, respectively.      

About the shareholding pattern, 73 per cent of the stake is owned by the promoters, 14.68 per cent by the non-institutional investors, 8.15 per cent by DIIs, and the rest 4.17 per cent by DIIs.