Hatsun Agro rallies 13% in four days as Sundaram, SBI MF pick up 1.3% stake

Shares of dairy major Hatsun Agro Products surged over 6 per cent to a day’s high of Rs 1118.15 apiece in Friday’s intra-day trade. 

The stock was trading higher for the fourth straight day, having gained 13.4 per cent during this period. 

This recent upswing in the stock comes after leading mutual fund houses bought stakes in the company on Tuesday, September 6. 

SBI Mutual Fund has bought an additional stake of 0.7 per cent or 15.2 lakh shares for Rs 150.2 crore, while Sundaram Mutual Fund picked up 12 lakh equity shares or 0.6 per cent stake for Rs 118.5 crore in the firm.

On the other hand, the company’s promoter Raja Ganesan Chandramogan, meanwhile, pared his stake (1.3 per cent) via these two deals in the company. 

As per shareholding data on the BSE, SBI Mutual Fund and promoter Chandramogan held 4.9 per cent and 56 per cent stakes in the company, respectively, as at the end of the April-June quarter.

Hatsun Agro had reported the highest ever quarterly sales volumes in the April-June quarter (Q1FY23), crossing the Rs 2,000 crore mark for the first time.

However, high raw material and milk procurement prices kept the company's profitability under check. 

The firm reported yearly revenue growth of 31 per cent, but its Ebitda margins sank 300 basis points while net profits declined 11 per cent to Rs 52 crore over last year. 

At the current level, the scrip is down 28 per cent from its 52-week high of Rs 1,533.7 touched on October 18, 2021.