Dairy margins are expected to stabilise owing to expansion towards the value-added products, says Chhitij Jain of Rudra Shares & Stock Brokers.
Godrej Agrovet has launched new products in crop protection segment with capital expenditure of Rs 275 crore in the current fiscal to boost its chicken meat processing, oil palm and agro-chemicals businesses.
Additionally, the company is setting up a palm oil processing facility to increase its production capacity with 60 tonnes per hour. Moreover, an increase in import duty on palm oil, making imports expensive and domestic production competitive, will benefit the company substantially.
Dairy margins are expected to stabilise owing to expansion towards the value-added products, though volatility in milk prices can play a spoilsport. The target for the next 2-3 years is estimated at Rs 810.Disclaimer: The author is Head- Equities at Rudra Shares & Stock Brokers. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.