Credit Suisse maintains neutral on Godrej Agrovet, lowers target price to Rs 415

Credit Suisse has maintained neutral rating on Godrej Agrovet in the long term and lowered target price to Rs 415 from Rs 425. The stock ended down 1.75% at Rs 491.95 on Wednesday while BSE sensex closed 221.55 points up at 40,469.78.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1846.97 crore, up 8.74% from last quarter sales of Rs 1698.55 crore and up 16.73% from last year same quarter sales of Rs 1582.26 crore. The company has reported net profit after tax of Rs 102.36 crore in the latest quarter.


Investment Rationale

Godrej Agrovet had another weak quarter with EBITDA decline of 15%, said Credit Suisse. The oil palm and crop protection business had profit decline which offset the high profit growth of animal feed, the brokerage said. The brokerage has cut earnings estimates by 4-9% for FY20-FY22.