Accumulate Insecticides India; target of Rs 550: Prabhudas Lilladher

Prabhudas Lilladher's research report on Insecticides India

Insecticides India (INST) reported subdued results largely led by lower price realizations coupled with high cost inventory provisioning in 1QFY24. B2C/B2B/exports contribution stood at 66%/31%/3%, as against 66%/29%/5% in the same period last year. Further, Maharatna products contributed 61% of overall revenues in 1Q’24 as against 55% in 1Q’23. Going forward, management remains confident on achieving revenue growth of 10-12% YoY in FY24E aided by a) commencement of new facilities; b) new product launches; and c) significant export registrations.

Outlook

However, remains cautious on margins and guided for 9-10% EBITDA margins. We largely keep our estimates unchanged for FY24/25E. Maintain ‘Accumulate’ rating on the stock with an unchanged TP of Rs550/share based on 12XFY25 EPS.

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