Buy Insecticides India; target of Rs 949: Sharekhan

Sharekhan's research report on Insecticides India

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates. EBITDA came in at Rs. 90 crore, marking a 29% y-o-y increase but a 1% decline q-o-q, beating estimates by 7%. Margins were at 14%, rising by 251 bps y-o-y and 339 bps q-o-q. PAT stood Rs. 61 crore, up 47% y-o-y and 19% q-o-q, surpassing estimates by 8%.

Outlook

We retain a Buy rating with a revised PT of Rs. 949. Valuation of 19x/16x its FY2025E/FY2026E EPS is deemed justified.

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