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Multibagger alert: This stock doubled shareholder's money in 1 year; do you own it?

Multibagger alert: This stock doubled shareholder's money in 1 year; do you own it?

The multibagger stock has surged from Rs 560 to Rs 1,183.20 mark today in the last 12 months - yielding around 111 per cent in this period

Multibagger alert: This stock doubled shareholder's money in 1 year; do you own it? Multibagger alert: This stock doubled shareholder's money in 1 year; do you own it?

Shares of Hatsun Agro Product Limited have delivered more than 100 per cent return in the last one year. In comparison, the Nifty 50 index gained over 53 per cent and the S&P BSE Sensex rose over 52 per cent.

The multibagger stock has surged from Rs 560 to Rs 1,183.20 mark today in the last 12 months - yielding around 111 per cent in this period. It has gained 357 per cent in the last five years and has risen 62 per cent since the beginning of this year.

An amount of Rs 5 lakh invested in this stock a year ago would have turned into Rs 10.56 lakh today.

The stock rose 4 per cent to hit an all-time high of Rs 1,183.20 on Tuesday. It opened 0.64 per cent higher at Rs 1,139.70 against the previous close of Rs 1,132.45. The stock has been gaining for the last 2 days and has risen 11.15% during the same period.

With a market capitalisation of Rs 25,142.23 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

The company reported a standalone profit of Rs 58.33 crore for the quarter ended June 2021 compared to a profit of Rs 56.11 crore in the year-ago period. Revenue from operations grew 21 to Rs 1,544.71 crore in the June-ended quarter against Rs 1,279.28 crore a year ago.

According to MarketsMojo, the company has high management efficiency with a high ROCE of 19.76%. Also, the technical trend has improved from Mildly Bullish on August 23, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW.

The stock is trading at a discount compared to its average historical valuations and with an ROCE of 20.5, it has a Fair valuation with an 11.2 Enterprise value to Capital Employed. Along with generating 111% return in the last 1 year, the stock has outperformed BSE 500 in the last 3 years, 1 year and 3 months.

ICICI Securities believes that the commencement of three plants in a span of just 12 months is likely to lead to strong revenue growth and drive the return ratios upwards in FY22-23.

"We model Hatsun to report an earnings CAGR of 19.2% over FY21-23E with (1) high single-digit growth in milk procurement, (2) commencement of three plants and (3) lower effective tax rate in FY22E. We remain structurally positive on Hatsun due to its competitive advantages and strong growth opportunity in South India," the brokerage firm added.

Recently, the rating agency CRISIL revised the outlook on the long-term bank facilities of the company from "STABLE" to "POSITIVE" while reaffirming the long-term rating at CRISIL A+ and short term rating at CRISIL Al.

Published on: Sep 07, 2021, 3:06 PM IST
Posted by: Tanya Aneja, Sep 07, 2021, 3:04 PM IST