Motilal Oswal has given Buy recommendation for Godrej Agrovet recommended buy rating on the stock with a target price of Rs 755 in its research rep with a target price of Rs. 755 in its research report issued on Nov 10, 2021
Motilal Oswal’s research report on Godrej Agrovet
GOAGRO reported an in line revenue with robust growth (25%). EBITDA came in below our estimate due to gross margin pressure, led by higher commodity prices. EBIT margin witnessed a contraction across segments, except Palm Oil, which was aided by higher prices.
We reduce our FY22E/FY23E earnings estimate by 9%/8%, factoring in its 2QFY22 performance. We value the stock on a SoTP basis to arrive at our TP of INR755 per share. We maintain our Buy rating.