Godrej Agrovet Q2 Review - Strong Volume Growth; Weak Margins: ICICI Securities
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ICICI Securities Report
Godrej Agrovet Ltd.’s animal feed and vegetable oil segments reported strong revenue growth partially led by inflation in commodity prices. We note-
continued growth momentum in all feed categories and aggressive price hikes led to animal feed segment to report 48.8% YoY revenue growth,
steep increase in palm oil prices resulted in 36.9% YoY higher revenues of vegetable oil segment and
with an increase in milk procurement prices, dairy segment reported losses again.
Godrej Agrovet continued its efforts toward product portfolio expansion.
We model Godrej Agrovet to report earnings compound annual growth rate of 17.5% over FY21-24E and remain confident of value creation (return on equity more than cost of equity).
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