Godrej Agrovet shares surged 2 percent to Rs 805 apiece on August 28 as the company completed the acquisition of an additional 49 percent stake in subsidiary Godrej Tyson Foods, thereby increasing its shareholding to 100 percent.
Consequent to the acquisition, Godrej Tyson Foods has become a wholly-owned subsidiary of Godrej Agrovet with effect from August 27, 2024, the company said in an exchange filing.
So far this year, shares of Godrej Agrovet surged over 44 percent, beating benchmark Nifty 50's 15 percent rise. Earlier, the stock had hit Rs 877 apiece on July 15, 2024, and a 52-week low of Rs 447 apiece on October 26, 2023.
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In the recently concluded June quarter, Godrej Agrovet reported a revenue decrease of 6.4 percent year-on-year to Rs 2,350 crore, marginally above market expectations of Rs 2,305 crore. EBITDA, meanwhile, increased 17.2 percent YoY to Rs 226 crore, while EBITDA margin expanded by 193 basis points YoY to 9.6 percent in Q1FY25.
The company continued to demonstrate strong growth in profitability and margin expansion in Q1FY25, said analysts at BP Wealth. They added that the increase was mainly driven by robust volumes and improved realisations in the domestic crop protection business and margin expansion in animal feed and dairy businesses.
On the other hand, Godrej Tyson revenue fell 25 percent YoY in Q1FY25 due to lower volumes in the live bird business as the company continued to focus on branded business and reduced exposure to live bird business.
Looking ahead, BP Equities analysts expect further consistency in performance in the upcoming quarters to consider a more constructive stance in FY25. They did not share a rating or target price for the stock.
However, currently, around 6 brokerage houses cover the stock, with 3 recommending a 'buy' rating, 2 'hold', and 1 'sell' call.
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