Godrej Agrovet IPO – Invest
Godrej Agrovet is one of the leading players in agri-business with operations across five business verticals – Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry & Processed Foods.
Investment Arguments :
- Presence in Attractive Businesses
Animal Feed, Crop Protection and Dairy are among high potential sectors in India, where demand is high but supply of quality products is low. Given the government’s ambition of providing food security to 1.2 billion citizens, each of these businesses have the potential to grow at 15% for the next five years.
- Superior Research Capabilities
Intense focus on R&D has helped Godrej Agrovet to consistently improve the yields of its existing products and develop newer products. As an illustration, this is the only company in India to offer cattle feed across the entire life cycle of the cattle. As of Jun’17, the company has 190 registered trademarks, 13 patents and 2 copyrights.
- Pan India Manufacturing & Supply Chain
Godrej Agrovet sells its products under more than 42 different brands, including Jersey and Real Good Chicken. Each of the five businesses has multiple manufacturing locations and a pan-India supply chain. As an illustration, its animal feed business has 35 manufacturing facilities and a network of 4,000 distributors across India to sell these products
Valuation &GreenEdge View
At the upper price band of Rs. 460 per share, the company will trade at 30x current year’s earnings. Given the huge opportunity in each of the businesses and the well established position of Godrej Agrovet, valuations are bound to remain elevated. This can be a great compounding story over the long term. We recommend investors to subscribe to this IPO.
|Issue Open Date||4th Oct,Wed|
|Issue Close Date||6th Oct, Fri|
|Issue Price (Rs.)||450 to 460|
|Market Lot||32 (Retail investors should apply for 1 lot i.e. 32 shares only)|
|Minimum Application Size for Retail (Rs)||14,720/-|