Buy Sharda Cropchem, target price Rs 730: Anand Rathi

Anand Rathi has a buy call on Sharda Cropchem with a target price of Rs 730. The current market price of Sharda Cropchem is Rs 577.25. Sharda Cropchem, incorporated in 2004, is a Small Cap company with a market cap of Rs 5146.18 crore, operating in Pesticides/Agro Chemicals sector.

Sharda Cropchem's key products/revenue segments include Agrochemicals, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 929.94 crore, up 15.90% from last quarter Total Income of Rs 802.37 crore and up 44.26 % from last year same quarter Total Income of Rs 644.62 crore. The company has reported net profit after tax of Rs 31.14 Crore in latest quarter.

The company?s top management includes Mr.Ramprakash V Bubna, Mr.Vinod Kathuria, Mr.H S Upendra Kamath, Ms.Sonal Desai, Mr.Shobhan Thakore, Mr.Shitin Desai, Mr.M S Sundara Rajan, Mr.Manish R Bubna, Mr.Ashish R Bubna, Mrs.Sharda R Bubna, Mr.Shalin Divatia. Company has BSR & Associates LLP as its auditors. As on 31-12-2024, the company has a total of 9 crore shares outstanding.

Investment Rational
Anand Rathi largely maintains their earnings estimates. The brokerage expects 14%/21%/23% revenue/EBITDA/PAT CAGRs over FY25-27. The recent correction in the stock price provides an attractive entry point for investors. They, thus, maintain a Buy rating, with an unchanged target price of Rs 730, 15x FY27eEPS. Anand Rathi believes risk-reward is favourable for the stock. Risks include escalation in geopolitical tensions between Russia and Ukraine, forex movements. No major improvement is seen in realisations and there may be delay in registrations.

Promoter/FII Holdings
Promoters held 74.82 per cent stake in the company as of 31-Dec-2024, while FIIs owned 3.77 per cent, DIIs 10.06 per cent.