Buy Sharda Cropchem; target of Rs 660: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Sharda Cropchem has recommended buy rating on the stock with a target price of Rs 660 in its research report dated January 25, 2023.

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January 27, 2023 / 18:12 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Sharda Cropchem

We broadly retain our estimates for Sharda Cropchem (SHCR), given company’s decent performance amid challenging times in 3QFY23. SHCR reported strong revenue growth of 16% YoY, led by volume/price growth of 9%/7% YoY. Gross margins (GM) contracted by 340bps YoY to 30.5%, largely led by adverse forex impact (Euro/USD depreciated by 12% YoY during 3Q). While, lower GM coupled with lower other expenses restricted EBITDA margin contraction of 290bps YoY to 19.1% (incl. IU&AD write-off of Rs22mn in 3QFY23). Citing positive growth momentum across regions coupled with price hikes in the recent past, management remains confident of achieving 15-20% YoY revenue growth in FY23E.

Outlook

SHCR has taken several measures to mitigate adverse forex impact in the recent past and this should aid in supporting margins, going forward. That said, we largely maintain our estimates with unchanged TP of Rs660 based on 14XFY25 EPS. Maintain ‘BUY’.

For all recommendations report, click here