ICICI Securities: Godrej Agrovet - A Beneficiary Of 60% Increase In Palm Oil Prices 
An employee holds harvested palm fruit for a photograph at a palm oil plantation (Photographer Sanjit Das/Bloomberg)

ICICI Securities: Godrej Agrovet - A Beneficiary Of 60% Increase In Palm Oil Prices 

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ICICI Securities Report

Higher palm oil prices (up 60% YoY) have increased realisations as well as profitability of Godrej Agrovet Ltd.’s vegetable oil segment.

Lower supplies from South-East Asia are leading to higher palm oil prices in India. With gradual reopening of the economy, demand from hotel restaurant cafe segment is likely to improve, which may further increase palm oil prices.

For every 5% increase in palm oil prices, Godrej Agrovet’s earnings can increase by approximately 2%. Customs duty on palm oil imports has been cut from 37.5% to 27.5%.

Click on the attachment to read the full report:

ICICI Securities Godrej Agrovet Company Update.pdf

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