๐
Report Period: Q4 FY25 & FY25
๐ CMP: โน3,688
๐ข Industry: Agrochemicals & Life Sciences
Domestic Agri Brands:
Q4: +21% YoY (Volume +24%)
FY25: +6% YoY (Volume +9%)
Strong growth due to good Rabi season and new launches
Agchem Exports:
Q4: -5% (Volume +7%)
FY25: +5% YoY (New product contribution +31%)
Price erosion due to softening input costs
Biologicals:
Q4: +10% YoY
FY25: +20% YoY
Strong traction with sustainable agri solutions
Pharma (PI Health Sciences):
Q4: 6% of exports revenue
33% QoQ growth
๐ FCF decline driven by higher capex for new capacity and R&D expansion.
6 new products commercialized in Exports, 7 in Domestic Agri
Biologicals: Global expansion plan with PREtec, Obrona, Saori, and Teikko in portfolio
Diversification into Specialty & Electronic Chemicals
Strong engagement via 15,000+ distributors and 1.6 Mn farmers
Valuation Ratios (CMP โน3,688):
PE Ratio: ~33.7x
PBV: ~3.6x
Near-term growth supported by:
Continued biologicals expansion
New launches in Agchem and Pharma
Strengthened India distribution
Challenges: Margin pressure in exports, high capex impacting cash
๐ท Long-term outlook remains promising, supported by diversified growth engines
๐ท Near-term volatility in profitability due to high tax and input price dynamics
๐ท Investors may accumulate on dips with a 5-year horizon
This analysis is for educational purposes only and should not be construed as investment advice. Investors are advised to do their own due diligence before making any investment decisions.