BSE:540743

Stock Analysis Report

Executive Summary

Godrej Agrovet Limited, an agri-business company, provides products and services that enhance crop and livestock yields.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Godrej Agrovet's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540743's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.3%

540743

4.2%

IN Food

2.2%

IN Market


1 Year Return

-23.7%

540743

10.0%

IN Food

-27.6%

IN Market

Return vs Industry: 540743 underperformed the Indian Food industry which returned 10% over the past year.

Return vs Market: 540743 exceeded the Indian Market which returned -27.6% over the past year.


Shareholder returns

540743IndustryMarket
7 Day9.3%4.2%2.2%
30 Day-12.1%-5.7%-20.0%
90 Day-30.1%-1.3%-25.9%
1 Year-22.9%-23.7%11.6%10.0%-26.1%-27.6%
3 Yearn/a59.8%54.9%-15.9%-20.5%
5 Yearn/a100.6%90.7%-5.7%-10.6%

Price Volatility Vs. Market

How volatile is Godrej Agrovet's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 years ago | Simply Wall St

Top 3 Growth Stocks For The Month

2 years ago | Simply Wall St

Top 3 Growth Stocks For The Month

Valuation

Is Godrej Agrovet undervalued compared to its fair value and its price relative to the market?

21.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540743 (₹387.35) is trading above our estimate of fair value (₹167.41)

Significantly Below Fair Value: 540743 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540743 is poor value based on its PE Ratio (21.6x) compared to the Food industry average (11.2x).

PE vs Market: 540743 is poor value based on its PE Ratio (21.6x) compared to the Indian market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 540743 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 540743 is overvalued based on its PB Ratio (4.3x) compared to the IN Food industry average (0.8x).


Next Steps

Future Growth

How is Godrej Agrovet forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540743's forecast earnings growth (19.7% per year) is above the savings rate (6.5%).

Earnings vs Market: 540743's earnings (19.7% per year) are forecast to grow faster than the Indian market (19.1% per year).

High Growth Earnings: 540743's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540743's revenue (11.3% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 540743's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540743's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Godrej Agrovet performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540743 has a large one-off gain of ₹1.5B impacting its December 31 2019 financial results.

Growing Profit Margin: 540743's current net profit margins (5.1%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 540743's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: 540743's earnings growth over the past year (44.1%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: 540743 earnings growth over the past year (44.1%) exceeded the Food industry 20.6%.


Return on Equity

High ROE: 540743's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is Godrej Agrovet's financial position?


Financial Position Analysis

Short Term Liabilities: 540743's short term assets (₹22.0B) do not cover its short term liabilities (₹22.9B).

Long Term Liabilities: 540743's short term assets (₹22.0B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: 540743's debt to equity ratio (30.1%) is considered satisfactory.

Reducing Debt: 540743's debt to equity ratio has reduced from 109.6% to 30.1% over the past 5 years.

Debt Coverage: 540743's debt is well covered by operating cash flow (39.4%).

Interest Coverage: 540743's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Godrej Agrovet's current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540743's dividend (1.16%) is higher than the bottom 25% of dividend payers in the Indian market (0.91%).

High Dividend: 540743's dividend (1.16%) is low compared to the top 25% of dividend payers in the Indian market (3.92%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540743 has been paying a dividend for less than 10 years.

Growing Dividend: 540743 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), 540743's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540743's dividends in 3 years are forecast to be well covered by earnings (28% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Balram Yadav (55yo)

no data

Tenure

₹46,903,986

Compensation

Mr. Balram Singh Yadav has been the Managing Director of Godrej Agrovet Limited since May 20, 2009. Mr. Yadav serves as Managing Director of Godrej Tyson Foods. He serves as an Executive of Godrej Industri ...


CEO Compensation Analysis

Compensation vs Market: Balram's total compensation ($USD620.20K) is above average for companies of similar size in the Indian market ($USD472.13K).

Compensation vs Earnings: Balram's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Balram Yadav
MD & Executive Directorno data₹46.90m2.22% 1.5b
S. Varadaraj
CFO and Head of Legal & IT3.5yrsno datano data
Vivek Raizada
Head of Legalno datano data0.000030% 20.8k
Salil Chinchore
Head of Human Resources2.75yrsno datano data
Praful Bhat
Head of Manufacturing & Supply Chain Excellence3.83yrsno data0.056% 38.8m
Pitamber Narkhade
Head of Research & Development and Nutrition3.5yrsno datano data
R. Govindan
Executive Vice Presidentno datano datano data
Rakesh Dogra
Head of Crop Protection Business3.5yrsno data0.046% 31.6m
Sanjivani Sadani
Head of Human Resources - Food Business3.83yrsno datano data
Nasim Ali
Chief Executive Officer of Oil Palm Plantations Business3.83yrsno datano data

3.5yrs

Average Tenure

Experienced Management: 540743's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Balram Yadav
MD & Executive Directorno data₹46.90m2.22% 1.5b
Vijay Crishna
Director27.67yrs₹750.00kno data
Nadir Godrej
Chairmanno data₹750.00k0.000050% 34.7k
Kavas Petigara
Independent Director27.67yrs₹1.50mno data
Tanya Dubash
Director17yrs₹750.00k0.000020% 13.9k
Jamshyd Godrej
Director27.67yrs₹750.00kno data
Ritu Anand
Independent Director2.75yrs₹1.50m0.000050% 34.7k
Raghunath Mashelkar
Independent Director2.75yrs₹1.35mno data
Roopa Purushothaman
Independent Director2.75yrs₹1.45m0.00052% 360.7k
Nisaba Godrej
Directorno data₹750.00k0.92% 637.5m

14.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 540743's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540743 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Godrej Agrovet Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Godrej Agrovet Limited
  • Ticker: 540743
  • Exchange: BSE
  • Founded: 1991
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹69.356b
  • Shares outstanding: 192.04m
  • Website: https://www.godrejagrovet.com

Number of Employees


Location

  • Godrej Agrovet Limited
  • Godrej One
  • 3rd Floor, Pirojshanagar
  • Mumbai
  • Maharashtra
  • 400079
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540743BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2017
GODREJAGRONSEI (National Stock Exchange of India)YesEquity SharesININROct 2017

Biography

Godrej Agrovet Limited, an agri-business company, provides products and services that enhance crop and livestock yields. It operates through Animal Feed, Vegetable Oil, Crop Protection, Dairy, and Other Business segments. The company offers animal feed, such as cattle, poultry, aqua, and specialty feed, as well as on-farm technical support services. It also engages in the oil palm cultivation with approximately 61,700 hectares of plantations across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Maharashtra, and Mizoram producing crude palm oil, crude palm kernel oil, and palm kernel cake. In addition, the company produces and markets plant growth regulators and bio-stimulants under the Vipul, Double, and Combine brands in India, as well as exports to the United States, Kenya, and Mauritius; herbicides; insecticides; fungicides; and soil conditioners and organic manures. Further, it manufactures and markets poultry and meat products under the Real Good Chicken brand; vegetarian and non-vegetarian ready-to-cook products under the Real Good Yummiez name; and processes and sells milk and milk-based products under the Jersey brand. Additionally, the company produces agrochemical active ingredients, intermediates, and pharmaceutical intermediates, as well as offers off-patented chemistries to domestic agrochemical marketers and also for exports to the United States, Europe, West Asia, South East Asia, and Latin America. It is also involved in the seed and real estate businesses, as well as energy generation through windmill. The company was incorporated in 1991 and is based in Mumbai, India. Godrej Agrovet Limited is a subsidiary of Godrej Industries Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 13:03
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.