12-Oct-2026 13:36:47
ICICI SECURITIES ON GODREJ AGROVET ; BUY | TP ₹845 | EARLIER TP ₹865 | CMP ₹628
• Godrej Agrovet is undertaking a 3–5 year strategic transformation to simplify its portfolio and become more consumer-facing. • Company is exiting unprofitable businesses/geographies while increasing investments in brands, R&D and downstream value addition. • Oil Palm remains a key growth engine with ~80,000 hectares under cultivation; plans long-term investment of ~₹1,000 crore. • Dairy business undergoing an execution reset; aims to raise value-added product share to ~60% from ~40%. • Foods business shifting toward branded protein products, with quick commerce emerging as an important distribution channel. • Animal Nutrition focusing on premium products; shrimp feed under strategic review and non-competitive poultry exposure being reduced. • Crop Care strategy is diversifying beyond cotton and chilli to broaden the earnings base. • Astec Lifesciences being repositioned toward a specialised CDMO model; early improvement in losses and EBITDA break-even seen. • FY27E/FY28E EPS estimates cut by 6.5%/2.3% due to near-term uncertainty in dairy, poultry and crop protection. • ICICI Securities expects ~16% EPS growth with improving RoE/RoCE through FY28E; stock trades near the lower end of its 5-year valuation range.
GODREJ AGROVET LIMITED