Motilal Oswal has given Buy recommendation for Godrej Agrovet recommended buy rating on the stock with a target price of Rs 760 in its research r with a target price of Rs. 760 in its research report issued on Aug 11, 2021
Motilal Oswal’s research report on Godrej Agrovet
GOAGRO registered robust revenue growth due to a recovery in demand across segments. The Animal Feed and Palm Oil business drove performance on the back of a demand uptick and price hike. EBITDA margin contracted by 220bp YoY due to a surge in commodity prices, thereby affecting gross margin.
We largely maintain over earnings estimate for FY22E/FY23E, as its 1Q performance was broadly in line with our estimates and the continued demand recovery across segments. We value the stock on a SoTP basis to arrive at our TP of INR760. We maintain our Buy rating.