This dairy stock is trending today!

Shares of the company surged 9% on Thursday.

On December 1, the market is trading in green scaling new lifetime highs. At noon, the S&P BSE Sensex is trading at 63,334.29, up 0.37%, while NIFTY50 is trading at 18,826, up 0.36%. Regarding sectoral performance, IT and Metal are the top gainers, while FMCG and Metal are among the top losers. Talking about stock-specific action, Hatsun Agro Product Ltd is among the top gainers in BSE group ‘A’.

The shares of Hatsun Agro Product Ltd surged 9% and are trading at Rs 975.9. The stock opened at Rs 901.55 and made an intraday high and low of Rs 988.9 and Rs 900, respectively. Yesterday, the company announced the right issue offer of Rs 400 crore which is scheduled to be held on December 3. 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% and 24%, respectively. Whereas, the stock has delivered a 10-year CAGR of 34%.

The company has a market capitalisation of Rs 20995 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% of the stake is owned by the promoters, 14.68% by the non-institutional investors, 8.15% by DIIs, and the rest 4.17% by DIIs.