Agro Chemicals Q4 Results Preview — Challenges To Persist For Domestic Players: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We expect companies in our coverage universe to report revenue/Ebitda/ profit after tax growth of 21%/15%/8% YoY (agrochemicals 11%/9%/0.1% YoY), (fertilizers 51%/53%/48% YoY). Growth of agrochemical companies is likely to be subdued (expected to grow at mid-single to low double digit YoY; our estimate: 11% YoY revenue growth) primarily led by-sluggish demand environment in a seasonally lean quarter;higher carry-over inventory from kharif season, leaving limited room for further inventory push;higher sales return (particularly insecticides grades) exerting pressure on margins andprovisions of high cost inventory, amid falling raw material cost scenario. On the other hand, growth in fertilizer companies is likely to be higher led by higher subsidy payout from Government and reduced raw material prices. Citing above reasons, we remain cautious on the sector. Though major macro-economic variables (soil moisture, water reservoir levels, domestic crop prices etc.) continue to remain on positive trend, yet higher base of last year (H2 FY22, ~25% YoY growth) may pose challenges for domestic agri input players. Further, rising concerns on El-nino in the upcoming season is likely to dampen the earnings prospects going forward..Click on the attachment to read the full report:.Agro Chemicals Q4 Results Preview - CSM Segment Likely To Lead Sector Growth: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Agro Chemicals Q4 Results Preview — Challenges To Persist For Domestic Players: Prabhudas Lilladher

Rising concerns on El Nino in the upcoming season is likely to dampen the earnings prospects.

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