Agriculture share price target

insecticides & fungicides. While the domestic agrochemical market continues to deal with the vagaries of monsoon, exports have grown by 17.4% in volume and 22.8% in value YoY for the agrochemical industry YTD 11MFY19. Hence we continue to remain positive on companies with sizeable exports/ International business like PI Ind and UPLL given their high revenue growth visibility and consistency in performance. We also like DAGRI and...

insecticides & fungicides. While the domestic agrochemical market continues to deal with the vagaries of monsoon, exports have grown by 17.4% in volume and 22.8% in value YoY for the agrochemical industry YTD 11MFY19. Hence we continue to remain positive on companies with sizeable exports/ International business like PI Ind and UPLL given their high revenue growth visibility and consistency in performance. We also like DAGRI and...

Dhanuka Agritech (DAGRI) maintained that the launch of new products will continue to drive growth for the company in FY20. It is also increasing its distribution reach as newer markets have emerged in the deep interiors of the country. Channel inventory for the industry is 20-30% higher than normal, due to tepid demand. Despite tepid performance we remain bullish on the stock led by 1) 15 product introductions in FY17 and FY18 2) renewed focus on efficient marketing and 3) planned launch of ~5-6 new products in FY20. Additionally, its focus on herbicides (32% of sales) and fungicides (15%)...

Budget tries to bring ACHE DIN: NDA Govt's last budget has turned out to be fairytale election budget with a slew of measures for upliftment of marginal farmers and lower middle class. Govt has introduced PM Kisan Yojana (Rs750bn, Rs200bn in FY19 itself) extension of interest subvention for animal husbandry and Contributory pension scheme for unorganized workers. Interim budget has tried to bring ACHE DIN for the bottom end of the society. Middle class has been...

Budget tries to bring ACHE DIN: NDA Govt's last budget has turned out to be fairytale election budget with a slew of measures for upliftment of marginal farmers and lower middle class. Govt has introduced PM Kisan Yojana (Rs750bn, Rs200bn in FY19 itself) extension of interest subvention for animal husbandry and Contributory pension scheme for unorganized workers. Interim budget has tried to bring ACHE DIN for the bottom end of the society. Middle class has been...

Refer to important disclosures at the end of this report Agri Digest domestic players on a soft patch, exporters better placed Low precipitation, coupled with the decline in acreages, should result in lower output,...

Farmers have increasingly taken up policy focus in this past year, owing to increasing signs of distress in rural areas and the rural economy.

We attended the All India Agri Input Dealers Association Conference and interacted with distributors/dealers and farmers from across India to gauge the current mood in the Agriculture sector and key industry trends. Dealers have indicated that inventory of fertilisers and pesticides remains low, which will support volume growth in FY19E provided the southwest monsoon is normal. FY18 witnessed down-trading in mid-segment (value-wise) pesticides, as farm incomes In this monthly update on Agri Input...

Unseasonal rain and hailstorms in the 2nd week of Feb'18 have affected standing Rabi crops in parts of Maharashtra, Madhya Pradesh, Telangana and Karnataka. The rain has affected standing crops such as Wheat, Maize, Onion, Jowar, Coffee, Green Gram and several horticulture crops like Oranges, Grapes and Banana. Our interactions with several dealers in these regions reveal that the hailstorm may not have any material bearing on the Rabi output. However, it may change the quality of output, which in turn would have an adverse impact on pricing. The standing crops of Masur, which is grown extensively in these regions, is likely to suffer from the hailstorm....

Our interaction with seeds distributor in Telangana has indicated that cotton acreages are expected to increase by 20-25% while maize and pulses acreages are expected to fall by 30-40%. Kaveri is likely to gain market share on the back of new product launches such as Money Maker' which has got encouraging results during trial last year. Jadoo...