Godrej Agrovet: Bird Flu Scare To Impact In Near Term, Says ICICI Securities
Godrej Agrovet products kept in a fridge in a shop. (Photo: BloombergQuint)

Godrej Agrovet: Bird Flu Scare To Impact In Near Term, Says ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Godrej Agrovet Company Update.pdf

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