Review

GODREJ AGROVET LTD.. 

Ticker : 540743
FV : Rs 10 
52-Week H/L : Rs 568.70/265.05

We had previously recommended Godrej Agrovet Limited in volume 37, issue no. 09, dated December 21, 2021, when the scrip was trading at Rs 549.60. It was recommended based on the company’s strong growth prospects. Looking at the consolidated financial front on a quarterly basis, for Q3FY21, its net sales declined by 14.41 per cent to Rs 1,523.44 crore from Rs 1,779.90 crore reported for Q3FY20. The operating profit expanded by 14.16 per cent in Q3FY21 to Rs 125.51 crore compared to that of Rs 109.94 crore in Q3FY20. Godrej Agrovet reported the net profit for Q3FY21 to be Rs 58.20 crore, which is an increase of 28.59 per cent compared to the net profit of Rs 45.26 crore reported for Q3FY20. The company reported lower-than-expected results for Q3FY21, led by a subdued performance from the animal feed & palm oil segment. Going forward, a turnaround is expected in FY22 with volume build-up and a boost in business. Hence, we recommend-HOLD.