Accumulate Godrej Agrovet, target price Rs 570: Prabhudas Lilladher

Prabhudas Lilladher has accumulate call on Godrej Agrovet with a target price of Rs 570. The current market price of Godrej Agrovet is Rs 498.15. Time period given by analyst is one year when Godrej Agrovet Ltd. price can reach defined target.

Godrej Agrovet Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 9569.57 Crore) operating in Agriculture/Horticulture/Livestock sector.

Godrej Agrovet Ltd. key Products/Revenue Segments include Animal Feed, Oil Vegetable, Crop Protection, Others, Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2517.53 Crore, up 17.98 % from last quarter Total Income of Rs 2133.92 Crore and up 25.67 % from last year same quarter Total Income of Rs 2003.21 Crore. Company reported net profit after tax of Rs 74.97 Crore in latest quarter.


Investment Rationale
With the spillover of sales from 1Q to 2Q coupled with softening of RM prices and liquidation of most high-cost inventories, we expect 2QFY23 to witness an improvement. The brokerage expects revenue/EBITDA/PAT CAGR of 10%/10%/9% over FY22-24E. Factoring in subdued 1QFY23 performance, it trims FY23/24E earnings estimate by 1%/2% each. Maintain ACCUMULATE rating on the stock with revised SOTP based TP of Rs570 (Rs577 earlier).

Promoter/FII Holdings
Promoters held 73.7 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.48 per cent, DIIs 2.89 per cent.