Seed companies struggle as monsoon weakens; recommend no stock from entire agri pack: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his views on the agri space.

ET Now: A host of experts believe that the agri theme is making a comeback. What according to your mind is working for the agricultural sector right now? Which agri stocks could be good buying bets in the next 12 months?

Mayuresh Joshi: Something like United Phosphorus is what we liked a few quarters back. It has moved up substantially. For all other agri players, one really needs to understand how growth dynamics are panning out. For example, seed companies are clearly struggling with the monsoon not expected to come through at least for this year.

As pre-buying takes place before monsoon season begins, the possibility of lower seed sales coming through is not ruled out.

Chemical companies too are dependent on a lot of macro and micro data. Companies like Jain Irrigation, though the management is very hopeful of debt-equity ratio coming down, one really needs to understand how their micro irrigation system business is shaping up. The receivables from governments have come down substantially and there is lack of clarity on stake sale food processing unit. Therefore, a lot of these aspects need to be looked at. There is no definitive buy call still on these food stocks yet.