EUR 120.00 For Business Accounts Only

MOSL: Morning India (2/April/19): 1. Godrej Agrovet - Initiating Coverage (Agri behemoth in the making); 2. Coal India; 3. JSW Energy (Scraps electric vehicle plans); 4. Cyient; 5. Automobiles; 6. EcoScope; 7.

MOrning India (2/April/19): 1. Godrej Agrovet - Initiating Coverage (Agri behemoth in the making); 2. Coal India; 3. JSW Energy (Scraps electric vehicle plans); 4. Cyient; 5. Automobiles; 6. EcoScope; 7. Metals Weekly

 

Today’s top research idea

Godrej Agrovet (Initiating Coverage): Agri behemoth in the making; Riding on the back of crop protection and the palm oil business

• The diverse nature of GOAGRO's various businesses de-risks its operations. The diverse nature of GOAGRO's various businesses de-risks its operations. Strength of the 'Godrej' brand and its association with trust, quality and reliability help the company across segments, particularly in those involving direct sales to retail consumers.
• In crop protection, GOAGRO expects 10 product launches with a potential of INR10b over the next 3-5 years. Capacity expansion should drive growth in Astec with GOAGRO’s plans to invest INR350-400m every year over the next 3-4 years in triazole chemistry. As >90% of palm oil demand is imported in India, demand is not a constraint. The government has introduced a program to promote its palm cultivation in the country and GOAGRO as India's largest palm oil processor is well poised to tap this opportunity.
• Low compound feed penetration, decline in fodder availability and increased crossbreeding among cattle should drive industry-wide growth for cattle feed, which should benefit GOAGRO. We expect the animal feed segment to deliver revenue/EBITDA CAGR of 14%/12% over FY18-21.
• We expect consolidated revenue/ EBITDA CAGR (FY18-21) of 12%/ 16% to INR73b/ INR7.0b. We initiate coverage on GOAGRO with Buy rating and SoTP-based target price of INR610.

Piping hot news

Vinod Dasari joins Royal Enfield as CEO

• In order to propel Royal Enfield as a global motorcycling brand, Eicher Motors Ltd (EML) on Monday announced the appointment of Vinod K. Dasari as the Chief Executive Officer (CEO). Dasari will also join the Board of Eicher Motors Ltd as an Executive Director with immediate effect. He takes over from Siddhartha Lal who will continue as the Managing Director of Eicher Motors Ltd. At Royal Enfield, Siddhartha will continue to support Vinod and the team on product and brand related areas.