Motilal Oswal's research report on Godrej Agrovet
GOAGRO reported a muted operating performance, owing to continued volatility in input cost, price erosion in key products, and limited price pass on. Animal Feed (AF) EBIT grew 12% YoY; processed food division turned EBIT positive to INR137m; Crop protection (CP) business witnessed an EBIT decline of 45% YoY, led by adverse product mix, lower demand, and lower realization.
Outlook
We largely maintain our FY23/FY24/FY25 earnings estimate and reiterate our Buy rating with an SoTP basis TP of INR570.
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