Sharda Cropchem Ltd. share price target

We recently met Sharda Cropchem’s Chairman and MD, Mr R V Bubna to gauge the business outlook. Management is confident of achieving double-digit revenue growth (guidance raised 26% y/y post Q3 results vs. 15-20% earlier) in FY25, particularly due to volumes and penetration into new markets.

A gradual price increase, volume growth across regions and a good product mix drove Sharda Cropchem’s better-than-expected Q3 results. Growth would improve ahead as de-stocking is now complete

? Sharda Cropchem Limited (SCL) reported solid growth in 3Q FY25 as revenues increased by 46.9% y-o-y to Rs 929.3 crore, fuelled by a robust increase in sales volume and a strategic price adjustment. Growth was observed across regions, with Europe and North America exhibiting
strong performance.
? Gross margin expanded by 650 bps y-o-y to 32.7%.

Sharda Cropchem Limited (SCL) reported solid growth in 2Q FY25 as revenues increased by 33.8% y-o-y to Rs 776.9 crore. A volume growth of 21% y-o-y was driven by strong performance at the agrochemical segment with Europe being the key contributor.

Sharda Cropchem Limited (SCL) reported solid growth in 1Q FY25 as revenues increased by 23.1% y-o-y to Rs 785.1 crore. A volume growth of 41% y-o-y was driven by strong performance at the agrochemical segment.

Sharda Cropchem (SHCR) reported strong operational performance in 3QFY22, primarily led by healthy revenue growth across regions. Key highlights are: (1) Volume/Price/FX growth of 51%/26.5%/1% YoY respectively; (2) Gross margin declined 60bps YoY to 33.9% led by higher freight cost; (3) Better operating leverage coupled with superior geographical and product mix has resulted into EBITDA margins expansion of 250bps YoY to 22% (incl. IU&AD write-offs of Rs70mn in 3QFY22); and (4) Working capital days up by 1-day YoY to 72. Citing a positive growth momentum across...

We maintain reduce rating (TP- Rs 676) on CRIN due to capacity constraints in NPK and likely headwinds on the raw material side starting 4Q. We are positive on Urea companies given healthy volumes and significantly lower...

Sharda reported better than expected results driven by strong demand from Europe & NAFTA region, new product introduction and better penetration. Declining raw material cost led to 412 bps expansion in gross margin. With improving operating environment, FY21 is expected to be a turnaround year for SHCR with both Europe and NAFTA to be growth levers. Growth momentum is expected to continue driven by expanding distribution reach, new molecule introduction and strong demand for generic molecules....

Sharda Cropchem reported inline set of results as prebuying in 4Q'20 led to flattish topline in 1Q'21. Declining raw material cost led to 207 bps expansion in gross margin. With improving operating environment, FY21 is expected to be a turnaround year for the company with both Europe and NAFTA to be growth levers. Cushion on gross margin pressure is expected to continue with better availability and reduction in raw material prices. We have increased our EBITDA/APAT estimates by 22%/38% for FY21E and 18%/31%...

Gross margins improved significantly by 522bps YoY to 36.2% on account of higher margins from Europe (38.6% in Q4FY20) and better product mix. EBITDA could have been better had it not been for...

Sharda Cropchem reported disappointing set of results driven by high Change in Estimates | Target | Reco inventory related issues in NAFTA region amidst demand slump leading to flat business growth for the core agchem segment and 403 bps YoY decline...

Sharda Cropchem's 1QFY20 performance was below our expectations, Sales de-grew by 7.5% YoY to 4.23bn (D.est: 5.25bn). EBITDA/PAT degrowth was even sharper by 13.3/33.5% YoY to 616/228mn respectively. Gross margin contraction of 337 bps YoY and 331 bps QoQ was a function of consistently rising raw material prices and a sharp gross margin decline in Europe of 560bps YoY (to 36.5% in 1QFY20). The stress on gross margins is largely attributed to innovators not taking price hikes eventually deterring Sharda's ability to take pricing action....

Margin headwinds + higher Opex and depreciation dent profitability Sharda Cropchem (SHCR)'s sales/EBITDA/PAT declined 0.2/20.2/6.7% YoY to ` 7.64/1.54/1.05bn, respectively, in 4QFY19. The gross margin contracted 340 bps YoY, as an explosion in a chemical park in China in March-19, created supply shortage and increased raw material prices. Sales de-growth of 0.2% YoY was on account of a volume de-growth of 21.1%, value growth of 16.7% and forex led growth of 4.2%. SHCR has virtually no debt on its balance-sheet (net cash of ` 3.35bn as on 31st...