Anand Rathi Recommends Buying Sharda Cropchem, Sets Target at Rs 730

Rapid Summary

• Company: Sharda Cropchem
• sector: Pesticides/Agro Chemicals
• Market Cap: ₹5146.18 crore
• Brokerage recommendation: Anand Rathi maintains a “buy” rating with a target price of ₹730.
• Current Share price: ₹577.25
• Financials:

– Last Quarter Total Income: ₹929.94 crore (up 15.90% from previous quarter)
– Year-on-Year Growth: Up 44.26%
– Net Profit After Tax: ₹31.14 crore

• Growth Projections (FY25-FY27): Expected CAGR for revenue/EBITDA/PAT is 14%/21%/23%.

• Risks Identified: Geopolitical tensions, forex movements, potential delays in registrations.

Indian Opinion Analysis

Sharda Cropchem has been identified as a favorable buy by Anand Rathi due to its strong financial performance and promising growth outlook in the pesticide/agrochemical sector. The recent increase in consolidated income showcases the company’s ability to leverage market opportunities effectively, despite global economic uncertainties.

The projections for revenue and profit growth underline an optimistic future trajectory for the company until FY27; however, reliance on external factors like geopolitical stability and currency exchange rates poses potential risks.

With a solid promoter holding of nearly 75%, commitment appears strong from internal stakeholders which may instill confidence among external investors as well.

Given these aspects, while riding on positive expected returns seems enticing for investors, awareness regarding geopolitical developments and market fluctuations remains essential when evaluating investment decisions in this context.

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