Fundamental Analysis

GODREJ AGROVET LIMITED

Ticker : 540743
BUY : Rs 549.60
Target : Rs 610

Godrej Agrovet Limited is a research & development agri-business company, which mainly focusses on improving the efficiency of the farmers by innovating services & products that helps in increasing crop and livestock yields. On a consolidated quarterly front, its net sales de-grew by 6.87 per cent for the quarter ended September 2020 to Rs 1,723.91 crore from Rs 1,851.12 crore in the same period of the previous fiscal year. The company reported an operating profit of Rs 181.47 crore in Q2FY21, up by 38.46 per cent from Rs 131.06 crore reported in Q2FY20. Similarly, its net profit decreased by 4.01 per cent from Rs 102.36 crore in Q2FY20 to Rs 98.26 crore in Q2FY21. Godrej Agrovet has a diversified product portfolio and also, enjoys a dominant position in the domestic organised capital feed industry. Considering the fact that the company would benefit from the combined revival of the agriculture business & advancement in technologies, we recommend a BUY.