Dodla Dairy Vs Hatsun Agro Products – Best FMCG Stocks

Company Overview of Hatsun Agro Products Ltd

Hatsun Agro Product Limited, an India-based company, focuses on processing and marketing milk, milk products, and ice cream. The company’s operations are divided into the Milk & Milk Products segment. Its product range includes milk, curd, ice cream, dairy whitener, skimmed milk powder, ghee, and paneer, catering to cooking and consumption needs. 

The company’s well-known brands are Arun Icecreams, Arokya Milk, Ibaco, HAP daily, Ibaco, and Santosa. Arun Icecreams offers various products such as Bars, Cups, and Tubs. Arokya provides standardized milk, curd, and paneer. Hatsun offers butter, ghee, curd, yogurt, and other dairy products. HAP daily carries brands like Arokya, Hatsun, and Arun Icecreams.  

Company Overview of Dodla Dairy Ltd

Dodla Dairy Limited is involved in the marketing of a variety of milk and milk products. The company offers a diverse selection of items in both liquid milk and by-product categories. The liquid milk includes five different varieties, while the by-products encompass 14 different variants. 

The company’s range of milk products includes fresh milk, butter, ghee, paneer, curd, flavored milk, doodh peda, ice cream, and skimmed milk powder. Dodla Dairy Limited provides various types of milk in pouches to meet customer preferences, such as full cream milk, toned milk, standardized milk, double toned milk, and UHT milk. The company’s ghee is available in three versions – cow ghee, white ghee, and premium ghee.  

The Stock Performance of Hatsun Agro Products Limited

The table below displays the month-by-month stock performance of Hatsun Agro Product Ltd for the past year.

The Stock Performance of Dodla Dairy Limited

The table below displays the month-by-month stock performance of Dodla Dairy Ltd for the past year.

Fundamental Analysis of Hatsun Agro Products Ltd

Hatsun Agro Product Ltd is a leading food and dairy company in India, renowned for its diverse range of products, including milk, ice cream, and curd. Established in 1986 and headquartered in Tamil Nadu, the company has built a strong reputation for quality and innovation. With a robust supply chain and significant investments in technology, Hatsun Agro ensures high standards in production and distribution, making it a trusted name in the dairy sector.  

​The stock is currently trading at ₹868.00, with a market capitalization of ₹19,347.91 crore. Over the past year, it has declined by 21.31%, with a six-month drop of 29.39% and a one-month decrease of 12.05%. It remains 61.29% below its 52-week high, indicating a significant correction.  

• Close Price ( ₹ ): 868.00
• Market Cap ( Cr ): 19347.91
• Dividend Yield %: 0.69
• 1Y Return %: -21.31
• 6M Return %: -29.39
• 1M Return %: -12.05
• 5Y CAGR %: 14.57
• % Away From 52W High: 61.29
• 5Y Avg Net Profit Margin %: 3.12

Fundamental Analysis of Dodla Dairy

Dodla Dairy is a prominent company known for its innovative solutions in the food and beverage industry. Established with a commitment to quality, Dodla Dairy has carved a niche for itself by offering a range of products that cater to diverse consumer preferences. Their focus on sustainability and ethical sourcing sets them apart in a competitive market.  

The stock is currently trading at ₹992.90, with a market capitalization of ₹5,929.02 crore. Over the past year, it has delivered a 21.15% return, though the last six months saw a decline of 20.24%. It remains 35.57% below its 52-week high, indicating potential upside.   

• Close Price ( ₹ ): 992.90
• Market Cap ( Cr ): 5929.02 
• 1Y Return %: 21.15
• 6M Return %: -20.24
• 1M Return %: -7.21 
• % Away From 52W High: 35.57
• 5Y Avg Net Profit Margin %: 4.85 

Financial Comparison of Hatsun Agro Products and Dodla Dairy

The table below shows a financial comparison of Hatsun Agro Product Ltd and Dodla Dairy Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of Hatsun Agro Products and Dodla Dairy

Hatsun Agro Products and Dodla Dairy demonstrate a strong commitment to rewarding shareholders with consistent interim dividends. Hatsun Agro offers a higher dividend payout of ₹6, while Dodla Dairy provides ₹3. Both companies reflect stable financial performance. Check the table for complete details.  

Advantages and Disadvantages of Investing in Hatsun Agro Products Limited

Hatsun Agro Product Ltd

The primary advantage of Hatsun Agro Products Ltd is its strong market presence in the Indian dairy industry. Known for its high-quality dairy products, the company benefits from a trusted brand reputation and an extensive distribution network, ensuring consistent consumer demand and long-term growth potential.

1. Established Brand Recognition
   Hatsun Agro is one of India’s leading dairy companies, with well-known brands like Arokya Milk and Butterfly. Its long-standing reputation for quality and reliability helps maintain customer loyalty, making it a prominent player in the dairy market.
   
2. Diverse Product Portfolio
   The company offers a wide range of dairy products, including milk, ice cream, curd, butter, and cheese. This diverse portfolio helps cater to different consumer preferences and needs, contributing to stable revenue streams across various segments.
   
3. Expanding Market Reach
   Hatsun Agro has a robust distribution network across India, reaching both urban and rural markets. The company is actively expanding its presence in international markets, which helps boost brand visibility and increase global sales opportunities.
   
4. Focus on Innovation and Quality
   The company focuses on product innovation and consistently improving the quality of its offerings. Through advanced processing techniques and strong quality controls, Hatsun Agro ensures freshness, safety, and consistency in its products, gaining the trust of consumers.
   
5. Sustainability and Operational Efficiency
   Hatsun Agro emphasizes sustainable practices in its production process, with a focus on reducing energy consumption and waste. This commitment to environmental responsibility, along with efficient operations, contributes to long-term profitability and growth in the competitive dairy market.

The main disadvantage of Hatsun Agro Products Ltd is its heavy reliance on the competitive and price-sensitive dairy industry. Fluctuations in milk prices, regional supply chain challenges, and increasing competition from both local and national dairy brands may affect its profitability and growth in the long term.

1. Fluctuating Milk Prices
   Hatsun Agro’s profit margins are directly impacted by the volatility in milk prices, which are subject to seasonal fluctuations, supply shortages, or changes in government policies. This price instability can disrupt cost management and reduce profitability.
   
2. Intense Market Competition
   The company faces strong competition from well-established dairy brands like Amul, Mother Dairy, and regional players. Competing on price, quality, and market share against such industry giants makes it difficult to sustain a dominant position.
   
3. Dependency on Regional Markets
   A significant portion of Hatsun Agro’s revenue comes from southern India. Expanding further into other regions or internationally presents challenges, requiring heavy investments in marketing, logistics, and distribution channels to increase market penetration.
   
4. Regulatory and Compliance Risks
   The dairy industry faces stringent government regulations on quality, safety standards, and milk procurement. Non-compliance or changes in regulations could lead to penalties, recalls, or even operational shutdowns, affecting company operations and reputation.
   
5. Sustainability and Environmental Challenges
   With increasing concerns over environmental impact, Hatsun Agro faces pressure to adopt more sustainable practices. Its dairy farming and production processes must focus on minimizing waste and improving energy efficiency to align with global sustainability trends and consumer preferences.

Advantages and Disadvantages of Investing in Dodla Dairy

Dodla Dairy Ltd

The primary advantage of Dodla Dairy Ltd is its strong presence in the Indian dairy sector, with a well-integrated supply chain and diverse product portfolio. 

1. Strong Market Presence
   Dodla Dairy has established itself as a key player in the dairy industry, with a significant presence in southern and western India. Its strong brand reputation and loyal customer base help drive consistent sales and market growth.
   
2. Diversified Product Range
   The company offers a variety of dairy products, including milk, curd, paneer, butter, ghee, and flavored milk. This diversification helps reduce dependency on any single product and ensures a stable revenue stream.
   
3. Expanding Domestic and International Reach
   Dodla Dairy has successfully expanded beyond India, catering to international markets such as Africa. This global presence diversifies its revenue sources and strengthens its brand recognition in the dairy industry.
   
4. Robust Procurement and Supply Chain
   The company has a well-structured milk procurement system, sourcing directly from farmers. Its efficient cold chain logistics and processing units ensure high-quality dairy products while minimizing losses due to spoilage or inefficiencies.
   
5. Growing Demand for Dairy Products
   With increasing consumer preference for healthy and nutritious food, the demand for dairy products continues to rise. Dodla Dairy is well-positioned to capitalize on this trend by expanding its product offerings and enhancing its distribution channels.

The main disadvantage of Dodla Dairy Ltd is its heavy reliance on the dairy industry, which is highly competitive and price-sensitive. Fluctuating milk procurement costs, intense market competition, and regulatory challenges pose risks to the company’s profitability, making it difficult to sustain long-term growth and stable margins.

1. Fluctuating Raw Material Costs
   The company depends on direct milk procurement from farmers, making it vulnerable to price volatility. Seasonal fluctuations, inflation, and supply chain disruptions can significantly impact production costs, affecting profit margins and pricing strategies.
   
2. Intense Market Competition
   Dodla Dairy faces strong competition from well-established players like Amul, Mother Dairy, and Heritage Foods. Competing on price, quality, and distribution against these giants makes it challenging to maintain market share and brand differentiation.
   
3. Regulatory and Compliance Risks
   The dairy sector is subject to stringent regulations related to food safety, quality standards, and pricing policies. Any non-compliance, product recalls, or changes in government policies can lead to legal issues, financial penalties, or operational setbacks.
   
4. High Dependency on Limited Regions
   A significant portion of Dodla Dairy’s revenue comes from southern and western India, limiting its geographic expansion. Expanding into northern and eastern markets or diversifying internationally requires heavy investment in logistics and branding.

How to Invest in Dodla Dairy and Hatsun Agro Products Stocks?

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Step 3: Search & Analyze Dodla Dairy and Hatsun Agro Products Stocks

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Hatsun Agro Products vs. Dodla Dairy Limited- Conclusion

Hatsun Agro stands strong in the Indian dairy market with a well-established brand and diverse product portfolio. However, its reliance on regional markets and the competitive dairy industry poses risks. Its future growth will depend on expanding its footprint and managing fluctuating milk prices effectively.

Dodla Dairy has a strong regional presence and is expanding internationally, offering growth opportunities. The company’s focus on operational efficiency and quality product offerings has helped it capture market share. However, it faces similar challenges, such as competition and fluctuating raw material costs, impacting profitability.

Hatsun Agro Products vs. Dodla Dairy – FAQ

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.