Godrej Agrovet: Bird Flu Scare To Impact In Near Term, Says ICICI Securities
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ICICI Securities Report
With several states facing concerns of bird flu, we believe animal feed and poultry segments of Godrej Agrovet Ltd. are likely to be impacted in near term.
However, we also expect organised players such as Godrej Agrovet to gain market share from unorganised players as consumers are willing to pay premium for hygienic and packaged products.
Key learnings from Bird flu epidemics in 2006 and 2008 -
1. There was impact on consumption and prices of chicken/eggs for approximately 12 months post outbreak of disease but consumption as well as prices recovered after the disease was controlled and
2. The profitability of poultry industry was impacted for three to four quarters in 2006 and 2008.
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