ICICI Securities: Deflation In Input Prices Leads To Higher Margin For Godrej Agrovet
Godrej Agrovet range of products. (Source: Company Website)

ICICI Securities: Deflation In Input Prices Leads To Higher Margin For Godrej Agrovet

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

ICICI Securities Report

Three pointers to note from Godrej Agrovet’s Q1 FY21:

1. With reducing fear of coronavirus, there is month on month improvement in company’s revenues.However, lower off-take from hotel restaurant cafe will continue to impact rest of FY21,

2. deflation in input prices for all segments will lead to better gross and Ebitda margin in FY21 and

3. the company has continued to focus on reduction in working capital which will lead to higher return ratios.

We expect most segments of the company to show recovery in H2 FY21 after weak H1 FY21 with normal monsoon and improved agriculture outlook.

Click on the attachment to read the full report:

ICICI Securities Godrej Agrovet Q1FY21 Results Update.pdf

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