Motilal Oswal's research report on Godrej Agrovet
GOAGRO reported an in line revenue with robust growth (25%). EBITDA came in below our estimate due to gross margin pressure, led by higher commodity prices. EBIT margin witnessed a contraction across segments, except Palm Oil, which was aided by higher prices.
Outlook
We reduce our FY22E/FY23E earnings estimate by 9%/8%, factoring in its 2QFY22 performance. We value the stock on a SoTP basis to arrive at our TP of INR755 per share. We maintain our Buy rating.
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