Prefer Jain Irrigation, UPL, Advanta among agri stocks: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his view on agri space.

ET Now: The whole pesticide space, including names such as Dhanuka and PI Industries, has been participating. When I broaden the horizon and look at the agri space at large, we have seen a run-up in shares of EPC industries up as well. Anything that stands out?

Deven Choksey: There are three areas we like in the agri space — micro irrigation systems, seeds business and crop protection business (which is agro chemicals pesticides combined). We have selected one company each in three of these areas. In the irrigation systems we like Jain Irrigation, in the agrochemical business we like UPL and in the seeds business, we prefer Advanta.

Now these three companies have a distinctly different business model, when we compare them with peers. They are existing, they are leaders, they have a size and they have derisking business models.

Disclaimer: is that we do have the coverage on these companies. We request investors to do their own research before buying into these companies. But, certainly we have the liking for these companies.