652.05 76.30 (13.25%)
The 6 reports from 2 analysts offering long term price targets for Godrej Agrovet Ltd. have an average target of 627.00. The consensus estimate represents a downside of -3.84% from the last price of 652.05.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-05-14||Godrej Agrovet Ltd. +||Prabhudas Lilladhar||540.95||639.00||540.95 (20.54%)||-2.00||Buy|
We roll forward to FY23 estimates and upgrade GOAGRO to BUY (from Accumulate) with SoTP (Exhibit 1) based target price of Rs 639 (previous 587). The company reported better than expected results driven by higher than anticipated margins in Animal Feed (@7.1% v/s PLe of 4.9%) and Crop protection (@20.3% v/s PLe of 18.6%) segment. Animal feed volumes were impacted by bird flu in Q4, but margins expanded by >300 bps due to commercialisation of R&D; initiatives. Increased sale of in-house products (up...
|2021-05-10||Godrej Agrovet Ltd. +||Motilal Oswal||531.50||615.00||531.50 (22.68%)||-5.68||Buy|
GOAGRO's strong 4QFY21 performance was aided by all segments and low base of 4QFY20. EBITDA margin expanded 440bp YoY due to lower raw material costs (-340bp YoY), which led to an EBITDA growth of 133%. All...
|2021-03-05||Godrej Agrovet Ltd. +||Prabhudas Lilladhar||491.00||587.00||491.00 (32.80%)||Target met||Accumulate|
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...
|2021-02-08||Godrej Agrovet Ltd. +||Prabhudas Lilladhar||503.25||587.00||503.25 (29.57%)||Target met||Accumulate|
GOAGRO reported lower than expected results driven by subdued performance from Animal feed & Palm oil segment. Animal feed demand remains impacted by slowdown in out-of-home consumption of dairy products and animal protein. Similarly, in palm oil segment, processing volumes took a big hit due to lower arrivals of Fresh Fruit Bunches (FFB) given white fly attack in AP & TG. While GOAGRO is getting its mojo back by (a) margin expansion across key segments (b) expected volume build up in...
|2021-02-06||Godrej Agrovet Ltd. +||Motilal Oswal||500.35||645.00||500.35 (30.32%)||-1.08||Buy|
GOAGRO's 3QFY21 revenue decreased by 14% YoY due to a 23%/17%/10% decline in the Animal Feed (AF)/Palm Oil/Dairy segment. However, EBITDA margin expanded due to lower raw material costs, which led to 12% EBITDA growth. Margin expansion was witnessed in AF and Processed Foods and Dairy, but contracted in Palm Oil and Crop Protection (CP). Factoring in the below expected performance during 3QFY21 (mainly due to Palm Oil, AF, and CP), we decrease our FY21E PAT estimate by 7%. We have maintained the same for FY22E/FY23E as performance in 3QFY21 was...
|2020-08-03||Godrej Agrovet Ltd. +||Motilal Oswal||468.00||540.00||468.00 (39.33%)||Target met||Buy|
Production disruption caused by the extended lockdown resulted in lower-than-expected sales volume of higher-margin specialty 45%/302% due to strong volumes and higher realizations in the enterprise declined 26% YoY and stood at INR2.4b with EBIT margin contracting 70bp to 1.4%. GOAGRO's CP business is expected to be on strong footing due to (a) product launches in the standalone CP segment, (b) strong performance in Astec owing to its expertise in triazole chemistry, and (c) commencement of a new herbicide In the AF segment, increase in chicken/milk prices should improve farm profitability, thereby driving demand for broiler/cattle feed. Crop protection segments performance was impacted as the company took a conscious call to reduce the receivable for The company launched new herbicides during the quarter Delete Aqua and Production disruption caused by the extended lockdown resulted in lower-than- expected sales volumes of higher margin specialty products.
|2020-06-04||Godrej Agrovet Ltd. +||Prabhudas Lilladhar||381.55||461.00||381.55 (70.90%)||Target met||Buy|
Domestic agrochemical industry is expected to grow +20% YoY in Q1 driven by massive surge in herbicide sales, pre-buying led by robust demand expectation and ~5% price increase in generic molecules. Geographically, North India followed by South is expected to drive growth. Also, crop wise Rice will be the single largest growth driver for the industry driven by acreage expansion and shift from transplanting rice to Direct Seeded Rice (DSR). Molecules like Bispyribac Sodium (Key player PI Ind- Nominee Gold), Pyrazosulfuron (UPL- Saathi, Dhanuka- Cempa) Pendimethalin (UPL- Dost...
|2020-05-13||Godrej Agrovet Ltd. +||Prabhudas Lilladhar||373.55||461.00||373.55 (74.55%)||Target met||Buy|
GOAGRO's results were significantly impacted due to COVID and lockdown measures leading to significant erosion in topline and profitability in the core business. Many one-offs and adjustments have impacted YoY comparison, but indicatively adjusted sales/EBITDA/APAT came at +2%/-5%/+38% YoY @ Rs 14.6 bn/ Rs 648 mn/ Rs 272 mn resp. Though its products fall under essential categories list the outlook continues to be grim for a while, as many...
|2020-05-12||Godrej Agrovet Ltd. +||Motilal Oswal||386.60||443.00||386.60 (68.66%)||Target met||Buy|
12 May 2020 Ex-Tyson Foods (absent in the base quarter) and sale of land, GOAGROs revenue declined 1%. On the other hand, EBITDA increased 9%, aided by performance in Crop Protection (CP) and Palm Oil, which was offset by Animal Feed (AF) and Dairy. Although quarterly performance was above our estimates, we maintain our estimates for FY21/FY22 due to the current uncertain scenario. Revenue improved 7% YoY to INR14.9b (v/s est. INR13.4b), largely attributable to growth in CP, Dairy, and Godrej Tyson Foods (absent in the base quarter). EBITDA margins contracted 220bp YoY to 3.2% (v/s est. They were weighed by margin contraction in AF, Dairy, and Godrej Tyson Foods, whereas they were offset by margin expansion in CP. However, higher other income restricted PAT decline to 10%. FY20 revenue/PAT grew 15%/6%, while EBITDA declined 10%. revenue remained flat YoY (at INR8.
|2020-02-06||Godrej Agrovet Ltd. +||Motilal Oswal||561.50||649.00||561.50 (16.13%)||Buy|
6 February 2020 GOAGROs 3QFY20 revenues were up 23% YoY (+12% ex-Godrej Tyson Foods as it was absent in the base quarter) while EBITDA stood flat due to margin contraction in crop protection (CP), dairy and Godrej Tyson Foods. However, PAT grew 26% YoY due to the lower tax rate. Revenue grew 23% YoY to INR17.8b (v/s est. INR17.7b) attributable to growth in animal feed (AF), palm oil and Godrej Tyson foods. EBITDA margins contracted 130bp YoY to 5.6% (v/s est. 7.7%) due to margin contraction in crop protection (CP), dairy and Godrej Tyson Foods. PAT was up 26% due to lower tax rate and higher other income. 9MFY20 revenue/PAT grew 18%/8% YoY, while EBITDA declined 5% YoY. Although EBIT/kg grew 37% YoY to INR1/kg, it declined 23% QoQ due lower share of high-margin shrimp feed sales and sale of feed to Godrej Tyson Foods (subsidiary company) at no profit.
|2019-12-03||Godrej Agrovet Ltd. +||Motilal Oswal||497.85||584.00||497.85 (30.97%)||Target met||Buy|
3 December 2019 Indonesia and Malaysia are the worlds largest palm oil producers and together account for ~86% share of palm oil production globally. According to both the South-East Asian countries are likely to increase the usage of palm oil for the production of biodiesel, which shall be used for their own consumption. The Indonesian government intends to implement B30 biodiesel (from B20 currently) in 2020, which would increase domestic consumption of crude palm oil by 3MMT. Therefore, post implementation of B30, incrementally 9% of Indonesias supply would be directed toward biodiesel Additionally, Malaysia which accounts for ~32% of the global production is also in the process of implementing B20. If B20 is implemented, domestic consumption of crude palm oil in Malaysia will incrementally increase by 1MMT; the country currently produces ~19MMT crude palm oil. GOAGRO is a participant in the governments Oil Palm Development Program (OPDP), which gives the company access to produce of Fresh Fruit Bunches (FFBs) from farmers in designated areas.
|2019-11-05||Godrej Agrovet Ltd. +||Motilal Oswal||500.65||584.00||500.65 (30.24%)||Target met||Buy|
YoY to INR9.4b). EBITDA margin contracted 240bp YoY to 6.5% (v/s est. 8.3%), mainly due to lower margin in crop protection and palm oil. EBITDA declined 15% YoY to INR1,197m (v/s est. INR1,561m). Adj. PAT was up 10% YoY to INR1,040m due to deferred tax benefit (v/s est. INR958m). Animal feed drives performance: Realization improvement in animal feed biz (+21% YoY) drove segment revenue growth of 32%; EBIT/kg stood at INR1.3 (up 1.7x YoY; flat QoQ). Astec posted strong revenue growth of 24% while EBITDA declined 32% YoY on account of INR120 inventory loss (related...
|2019-08-05||Godrej Agrovet Ltd. +||Motilal Oswal||427.75||522.00||427.75 (52.44%)||Target met||Buy|
Revenue in-line; EBITDA/adj. PAT below estimates: Consol. revenue grew 15% YoY to INR17b (our estimate: INR16.6b), mainly led by the animal feed segment (+20% YoY to INR8.9b). EBITDA margin contracted by 105bp YoY to 8.3% (our estimate: 9.5%), mainly on account of higher other expenses. EBITDA grew 2% YoY to INR1,419m (our estimate: INR1,584m). Adj. PAT was down 5% YoY to INR760m (our estimate: INR916m). Margin pressures evident: Animal feed revenue increased 20% YoY, led by price hikes of 13% YoY (+9% QoQ). However, segmental EBIT margin shrank...
|2019-04-01||Godrej Agrovet Ltd. +||Motilal Oswal||522.70||610.00||522.70 (24.75%)||Buy|
India has a huge opportunity in the palm oil business as it imports more than 90% of its demand due to supply constraint of fresh fruit brunches (FFBs). Oil palm plantation in India is regulated and GOAGRO has participated in the governments Oil Palm Development Program (OPDP) for accessing FFB produce from farmers in designated areas, thus being an asset-light model. GOAGRO being the largest palm oil manufacturer in India (35% market share) is well placed to capitalize on this opportunity as the government increases the area under cultivation. We expect the segment to deliver revenue CAGR of 11% over FY18-21 to INR8,046m by FY21 on account of increasing availability of FFBs (on higher mix of mature plants), increase in oil plantation area (currently has access to ~66k hectares of land and plans to add 2-2.5k hectares per year), and improvement in the Oil Extraction Ratio (OER).
|2018-12-03||Godrej Agrovet Ltd. +||Axis Direct||508.00||556.00||508.00 (28.36%)||Target met||Buy|
|2018-11-13||Godrej Agrovet Ltd. +||Religare||523.90||617.00||523.90 (24.46%)||Buy|
Godrej Agrovet Ltd (GAVL)'s Q2FY19 revenue was in-line with estimates, while higher expenses impacted operating profit. Its revenue grew by 11.4% yoy to Rs1,588cr, while EBITDA declined by 3.7% yoy to Rs141cr during the quarter due to lower operating leverage in animal feed (in Aqua) and palm oil segments. Net profit was up by 16.7% yoy to Rs94.2cr led by increase in other income.
|2018-10-30||Godrej Agrovet Ltd. +||Religare||522.25||617.00||522.25 (24.85%)||Buy|
Godrej Agrovet Ltd. (GAVL), part of the conglomerate Godrej group, is an agri-business company operating in five business verticals- animal feed, crop protection, palm oil, dairy and processed foods.
|2018-07-13||Godrej Agrovet Ltd. +||Rudra Shares and Stock Brokers Ltd||610.00||720.00||610.00 (6.89%)||Buy|
Rudra Shares and Stock Brokers Ltd
GoI has increased its investment towards agricultural and poultry industry which will benefit GAVL with its diversified business verticals coupled with pan India presence and established Godrej brand. Its significant investments towards R&D; and diversified business model would help to drive growth, optimize capital...
|2018-06-21||Godrej Agrovet Ltd. +||ICICI Securities Limited||642.00||642.00 (1.57%)||Mgmt Note|
ICICI Securities Limited
We recently met the senior management at Godrej Agrovet (GAVL) to get an insight into overall business model of the company and its position within the various business segments. GAVL is a well diversified agri business player having strong brand presence at a PAN India level. After being incorporated in 1991 GAVL has expanded exponentially both organically and through prudent strategic acquisitions (Cream line Dairy and Astec Life Sciences) thereby augmenting its product profile and widening its geographical footprint. GAVL currently operates across 5 key...
|2018-05-02||Godrej Agrovet Ltd. +||AUM Capital||700.05||805.00||700.05 (-6.86%)||Buy|
Godrej Agrovet Ltd. (GAVL), incorporated in 1991 in Gujarat is a subsidiary of one of the highly diversified Indian Conglomerate, the Godrej Group. GAVL is a diversified, research & development focused agri-business and animal feed company. GAVL holds leading market positions in the different businesses in which it operates - Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry and Processed Foods. GAVL is the largest crude palm oil producer in terms of market share...