Motilal Oswal has buy on Godrej Agrovet, target price Rs 584

Motilal Oswal has a buy rating on Godrej Agrovet in the long term with a target price of Rs 584. The stock ended up 2.3% at Rs 497.25 on Wednesday while the BSE Sensex closed 174.84 points up at 40,850.29.

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.


The company’s top management includes Dr.Raghunath A Mashelkar, Dr.Ritu Anand, Mr.B S Yadav, Mr.J N Godrej, Mr.K N Petigara, Mr.N B Godrej, Mr.Natarajan Srinivasan, Mr.Pirojsha Godrej, Mr.V M Crishna, Ms.Aditi Kothari Desai, Ms.Nisaba Godrej, Ms.Roopa Purushothaman, Ms.Tanya A Dubash. Company has B S R & Co. LLP as its auditors. As on 30-09-2019, the company has a total of 192,041,898 shares outstanding.

Investment Rationale

Indonesia and Malaysia – which account for around 86% of the world’s palm oil production – are planning to increase the usage of palm oil for the production of biodiesel, said Motilal Oswal. The brokerage said this event would be a positive for Godrej Agrovet's palm oil division in FY21.