Godrej Agrovet Ltd., incorporated in the year 1991, is a Mid Cap company (having a market cap of Rs 11916.74 Crore) operating in Agriculture/Horticulture/Livestock sector.
Godrej Agrovet Ltd. key Products/Revenue Segments include Animal Feed, Oil Vegetable, Crop Protection, Other Operating Revenue, Others for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2003.21 Crore, up 36.05 % from last quarter Total Income of Rs 1472.39 Crore and up 28.21 % from last year same quarter Total Income of Rs 1562.43 Crore. Company reported net profit after tax of Rs 93.42 Crore in latest quarter.
Investment Rationale
Godrej Agrovet’s Animal feed and Vegetable oil segments reported strong revenue growth partially led by inflation in commodity prices. It notes (1) continued growth momentum in all feed categories and aggressive price hikes led to Animal feed segment to report 48.8% YoY revenue growth, (2) steep increase in palm oil prices resulted in 36.9% YoY higher revenues of Vegetable oil segment and (3) with an increase in milk procurement prices, Dairy segment reported losses again. Godrej Agrovet continued its efforts toward product portfolio expansion. It models GAVL to report earnings CAGR of 17.5% over FY21-24E and remain confident of value creation (RoE > Cost of Equity). Maintain ADD with a DCF-based TP of Rs680 (26x FY24E; Earlier TP – Rs720).
Promoter/FII Holdings
Promoters held 71.64 per cent stake in the company as of 30-Sep-2021, while FIIs owned 2.88 per cent, DIIs 1.46 per cent.
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