Moneycontrol Be a Pro
Get App
Last Updated : Jul 26, 2019 04:48 PM IST | Source: Moneycontrol.com

Buy Sharda Cropchem; target of Rs 415: Dolat Capital

Dolat Capital is bullish on Sharda Cropchem has recommended buy rating on the stock with a target price of Rs 415 in its research report dated July 25, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Sharda Cropchem


Sharda Cropchem’s 1QFY20 performance was below our expectations, Sales de-grew by 7.5% YoY to ` 4.23bn (D.est: ` 5.25bn). EBITDA/PAT de-growth was even sharper by 13.3/33.5% YoY to ` 616/228mn respectively. Gross margin contraction of 337 bps YoY and 331 bps QoQ was a function of consistently rising raw material prices and a sharp gross margin decline in Europe of 560bps YoY (to 36.5% in 1QFY20). The stress on gross margins is largely attributed to innovators not taking price hikes eventually deterring Sharda’s ability to take pricing action.


Outlook


We continue to value Sharda cropchem at 15.0x FY21E EPS of ` 27.7, due to a correction in the stock price by 16.4% we foresee an upside of 43.0% with a target price of ` 415. We thus have to change our rating to Buy.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Jul 26, 2019 04:48 pm
Loading...
Sections
Follow us on
Available On