Recommendation from Consumer Food and Packaging - Films sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

HATSUN AGRO PRODUCT LTD
CMP - ₹961.00
BSE CODE 531531
Volume 4,647
Face Value ₹1
Target ₹1030 - 1050
Stoploss ₹874 (CLS)

Hatsun Agro Product Ltd has a strong global presence, exporting dairy ingredients to over 40 countries worldwide, particularly in the American, Middle Eastern, and South Asian markets. It produces and sells a wide range of goods, such as ice cream, curd, ghee, paneer, dairy whitener, and skim milk powder. Taking into account the company's quarterly performance, it reported a growth of 10.04 per cent from ₹1,626.26 crore registered in Q4FY22, recording total revenue of ₹1,789.46 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it fell 15.7 per cent from ₹29.64 crore to ₹24.98 crore. With a return on equity of 23 per cent, the company has demonstrated strong profitability while maintaining a healthy dividend payout ratio. When corresponding to the 52-week high of ₹1,118.50 on the BSE, shares are trading much lower and have room to grow soon. Hence, we recommend BUY

Cosmo First Ltd
CMP - ₹700.65
BSE CODE 508814
Volume 11,469
Face Value ₹10
Target ₹754 - 768
Stoploss ₹672 (CLS)

Cosmo First is engaged in speciality films for packaging, lamination and labelling applications. Its film offerings include biaxially oriented polypropylene (BOPP) films, cast polypropylene (CPP) films and biaxially oriented polyethene terephthalate (BOPET) films. In March 2023, the net sales of the company were recorded at ₹715.05 crore, marking a decrease of 12.89 per cent compared to the net sales of ₹820.88 crore in March 2022. The EBITDA for March 2023 was reported at ₹74.23 crore, showing a decrease of 54.91 per cent compared to the EBITDA of ₹164.62 crore in March 2022. The quarterly net profit for March 2023 stood at ₹31.82 crore, indicating a decline of 70.59 per cent from the net profit of ₹108.18 crore in March 2022. The company is a diversified business with atarget 20 per cent CAGR topline growth in the next 3 years coupled with commensurate return growth. Hence, we recommend BUY.