Hatsun Agro's Ice Cream Business Holds 'Potential to Create Value,' Says ICICI Securities; Rated as 'Buy'
ICICI Securities has issued a positive outlook for Hatsun Agro Products Limited, rating the company’s stock as a “Buy” on expectations of strong growth driven by its ice cream business. The brokerage highlighted the significant potential of the ice cream segment to create value for shareholders, leveraging the company’s strong brand positioning, expansive distribution network, and increasing demand for premium dairy products in India.
Hatsun Agro, one of India’s largest private sector dairy companies, is known for its flagship ice cream brands, including Arun and Ibaco. ICICI Securities noted that the company’s diversified product portfolio and regional dominance provide a solid foundation for scaling its ice cream business. The firm also praised Hatsun Agro’s focus on innovation and consumer-centric strategies, which have helped it maintain a competitive edge in a fragmented market.
“Given the rapid urbanization, rising disposable incomes, and shifting consumer preferences toward high-quality dairy products, Hatsun Agro’s ice cream business is poised to capitalize on these trends. We believe this segment has the potential to unlock significant value for the company in the medium to long term,” ICICI Securities stated in its research report.
The brokerage also pointed to Hatsun Agro’s ongoing efforts to expand production capacity and enhance its distribution footprint, particularly in underpenetrated markets. This is expected to drive volume growth and improve profitability.
With a strong balance sheet and a clear focus on growth, Hatsun Agro is well-positioned to sustain its leadership in the dairy industry while exploring new opportunities for expansion. Investors are optimistic that the ice cream division will emerge as a key revenue driver, complementing the company’s existing offerings in milk, curd, and other dairy products.
Hatsun Agro’s shares have shown resilience in recent months, reflecting growing investor confidence. ICICI Securities’ “Buy” rating reinforces the market’s belief in the company’s potential to deliver robust returns in the near future.
This development highlights the growing importance of the dairy and ice cream sector as a key contributor to India’s consumer goods industry. Investors and industry watchers will keep a close eye on Hatsun Agro’s performance in the coming quarters.
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