Buy Sharda Cropchem; target of Rs 566: Khambatta Securities

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26 Aug, 2025 12:21

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Khambatta Securities' research report on Sharda Cropchem

Sharda Cropchem Limited (SCL) reported robust 3Q FY22 performance. Revenues increased by 78.2% y-o-y to ₹ 879.8 crore, driven by strong volume growth across geographies, better product mix, and higher price realisations. The agrochemicals-to-non-agrochemicals revenue mix remained broadly unchanged on a y-o-y basis at 82:18. The geographical split for agrochemicals revenues was NAFTA 43%, Europe 42%, LatAm 7% and RoW 8%. The geographical split for non-agrochemicals revenues was NAFTA 44%, Europe 38%, LatAm 3% and RoW 15%. Gross margin was marginally down by 60 bps y-o-y to 33.9% due to higher freight costs. EBITDA margin expanded by 220 bps y-o-y to 22.8% as the higher freight costs were more than offset by economies of scale and effective cost management. PAT grew by 111.6% y-o-y to ₹ 102.2 crore. PAT margin expanded by 184 bps y-o-y to 11.6% as a lower effective tax rate more than offset higher depreciation and FX loss during the quarter.

Outlook

We maintain a BUY rating on the stock based on a target P/E multiple of 12.0x FY24E EPS that generates a price target of ₹ 566 with an upside of 29%.

More Info

At 17:30 Sharda Cropchem was quoting at Rs 578.35, up Rs 52.55, or 9.99 percent.

It has touched an intraday high of Rs 578.35 and an intraday low of Rs 501.25.

There were pending buy orders of 4,948 shares, with no sellers available.

It was trading with volumes of 396,505 shares, compared to its thirty day average of 62,662 shares, an increase of 532.76 percent.

In the previous trading session, the share closed up 19.99 percent or Rs 87.60 at Rs 525.80.

The share touched its 52-week high Rs 578.35 and 52-week low Rs 265.00 on 27 January, 2022 and 27 January, 2021, respectively.

Currently, it is trading 0 percent below its 52-week high and 118.25 percent above its 52-week low.

Market capitalisation stands at Rs 5,217.90 crore.
For all recommendations report, click here

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