Fundamental Analysis

BHARAT RASAYAN LIMITED

{Ticker : 590021 { BUY: Rs. 6900 { Target: Rs.7750

Bharat Rasayan is engaged in the manufacturing of pesticides- technical, formulations and its intermediates. On a quarterly standalone basis, the company reported net sales of Rs 365.66 crore in Q2FY20, up by 28.18 per cent from Rs 285.27 crore in Q2FY19. Operating profit grew by 19.64 per cent to Rs 61.1 crore in Q2FY20, as compared to Rs 51.07 crore in Q2FY19. Net profit for Q2FY20 came in at Rs 54.62 crore, increasing by an impressive 52.61 per cent from Rs 35.79 crore in the same quarter for the previous fiscal year. The sector is expected to grow with better momentum in the next few years, owing to an increase in investment in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Owing to this and the company's strong fundamentals, we recommend a BUY on Bharat Rasayan.