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Hatsun Agro Product (NSE:HAPL) Limited (HAP), India’s leading private sector dairy company, has announced the acquisition of 100% equity and preference shares of Milk Mantra Dairy Private Limited for INR 233 crore. This move aligns with HAP’s strategic vision of expanding into new geographical markets while strengthening its presence in Eastern India.
Milk Mantra, well-known for its innovative brand ‘Milky Moo,’ has established a stronghold in Odisha’s dairy market. With a turnover of INR 276.42 crore in FY2023-24, the company has showcased impressive growth and innovation. Milk Mantra’s operations complement HAP’s existing product portfolio, which includes popular brands like Arun, IBACO, Hatsun, and Arokya.
Through this acquisition, HAP not only integrates Milk Mantra’s expertise but also secures access to broader markets, including Odisha, North Andhra Pradesh, West Bengal, and neighboring states. The synergy between the two companies aims to elevate value for farmers and consumers by leveraging extensive infrastructure and deep market penetration. Post-acquisition, Milk Mantra will become a wholly-owned subsidiary of HAP.
This strategic expansion underscores HAP’s commitment to delivering fresh, high-quality dairy products across the country. Commenting on the development, HAP emphasized that the acquisition is a natural progression in its mission to scale innovation and impact in the dairy industry.
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While HAP’s acquisition of Milk Mantra bolsters its long-term growth strategy, investors must evaluate the stock’s valuation before making investment decisions. According to InvestingPro, HAP’s intrinsic value is INR 906.7 per share, indicating a 5.2% downside from its current market price of INR 956.2. This suggests that the stock is slightly overvalued, making it a cautious investment at this stage.
Investors keen on adding HAP to their portfolio should consider waiting for a price correction before entering. To evaluate such opportunities, tools like InvestingPro provide invaluable insights. With its fair value feature, InvestingPro uses multiple financial models to calculate a stock's intrinsic worth, ensuring investors make informed decisions. And with the ongoing New Year sale, investors can fetch mouth-watering discounts of up to 50%
Hatsun Agro Product’s acquisition of Milk Mantra marks a pivotal step in its growth story, enhancing its presence in India’s rapidly evolving dairy market. While the strategic move holds immense potential, current valuations suggest that prospective investors should tread carefully, monitoring the stock for better entry points with the help of advanced tools like InvestingPro.
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