Godrej Agrovet is a company that focuses on research and development in the agriculture industry. It refers to itself as an agri-business company. The company operates a number of different businesses which are - animal feed, palm oil, crop protection, poultry, dairy, and processed foods.
As of the first week of September 2018, the market capitalisation of Godrej Agrovet is about Rs.11,230 crore.
Godrej Agrovet Wealth and Recent Performance
From the standalone financial highlights for the company spanning FY16, FY17, and FY18, the following can be seen:
- The company’s revenue from operations kept increasing over the last three years from Rs.3,365.98 crore in the FY16 to Rs.3,617.85 crore in the FY17 to Rs.3,691.72 crore in the FY18.
- The profit after tax increased from Rs.1,582.67 crore in FY16 to Rs.2,079 crore in FY17 but then decreased to Rs.1,908.65 crore in FY18.
- The total equity of the company rose from Rs.696.55 crore in FY16 to Rs.1,288.88 crore in FY18. In FY17, the total equity of the company was Rs.902.61 crore.
- The total debt of the company decreased from Rs.1,223.63 crore in FY16 to Rs.483.4 crore in FY17 to Rs.216.72 crore in FY18.
Godrej Agrovet Stock Trends in 2018
- The stock of the company opened at about Rs.591 in the beginning of January 2018. There was an initial spike in the price of the stock with it going over Rs.600. In January, the stock peaked at about Rs.624 and dropped in price after that. The stock did not regain that value again for the rest of the month. The stock closed at a low of about Rs.570 by the end of the month. This was much lesser than the peak and lower than the price that the stock was traded at at the beginning of the month.
- The stock fluctuated a lot in February 2018 but eventually rose towards the end of the month to close at about Rs.605. Thus, the stock made up for most of its losses in January, in the last week of February.
- The stock rose some more in the beginning of March 2018 with the stock price shooting up above Rs.650. The stock stayed at high prices till the mid-month period during which it hit a high of about Rs.696. This was not sustainable and the price dropped down to Rs.637 by the end of the month.
- The first week of April 2018 marked a solid period of increase for the stock price of the company. The stock breached the Rs.700 mark in the first week of the month. While the price did drop below Rs.700 briefly, the stock regained its position over the last week to close for the month at about Rs.704.
- The stock stayed steady in the first week of May 2018 but dipped steeply during the next two weeks. During this time, the stock had a low of about Rs.602 which was about a Rs.100 decrease in price over the first three weeks of the month. During the last week of the month, the stock regained in price, to close for the month at about Rs.633.
- The stock did not breach the Rs.700 mark in June 2018 and the stock did dip after the mid-month period to close for the month at about Rs.619.
- In July 2018, the stock did not perform that well. The final price for the month was about Rs.627. A final 45% dividend was announced on 23 July 2018.
- The stock appeared to gain a bit in price over the first week of August but the price dipped after that. The stock did not climb up again in price over the rest of the month. The final price was for the month was about Rs.583.
Godrej Agrovet Stock Trends in 2016 and 2017
- The company’s stock began trading on 16 October 2017. Therefore, there is no stock history information for the period before that.
- On 16 October 2017, the stock opened at about Rs.595. The stock dipped during the initial weeks of the month but rose a little towards the end of the month to close for the month at about Rs.575.
- In November 2017, the stock began trading at about Rs.572. The stock dipped during the first week of the month. This downward trend continued through to the second week of the month during which time the stock touched a low of about Rs.528. During the next week, the stock rose again to reach a high of about Rs.558. During the final week of the month, the stock dipped for five days and increased during the last couple of days. The increase was modest with the stock closing at about Rs.552 at the end of the month.
- In December 2017, the stock began trading at about Rs.555. This was followed by a dip during the first week of the month that saw the stock go down in price to about Rs.542. The stock then began steadily increasing for the next two weeks. By the end of the third week of the month, the stock price had climbed to about Rs.574. The stock dipped some more again but rallied on the last day of the month to close at about Rs.579.
Should You Invest in Godrej Agrovet?
The company’s stock price may not be the best indicator of its value. Instead, consider the following:
- The company has shown consistent growth in most metrics over the FY16, FY17, and FY18. This indicates that the company is on the right path and that its profitability is not being compromised.
- The company has a joint venture with Tyson Foods of the United States of America. This venture sounds promising owing to the fact that Tyson Foods is one of the biggest brands of poultry producers in the world.
- The company has developed a number of ways to improve its palm oil production. To that effect, the company has acquired more than 55,000 hectares of palm plantations around India.
- The company is a market leader when it comes to poultry feed.
- The company has entered the Bangladesh market with a 50:50 venture with another company.
- The company acquired a promoter level holding in Astec Life Sciences Limited. This is promising since Astec has a number of clients based out of Europe, Asia, and America.
- The company has also acquired a stake in one of the leading dairy producers in India.
- The company has invested heavily in research and development.
- While these points can be considered for investment, especially considering that the company is highly diversified, it would be better to invest in it after performing adequate personal research based on personal financial commitments and risk appetites.
Godrej Agrovet is a company that focuses on agricultural business. The company is also into the business of animal feed. It is one of the biggest animal feed companies in India. The company has a number of manufacturing units in India.
History of the Company
Godrej Agrovet is part of the Godrej Group that is a conglomerate based out of India. They have their headquarters in Mumbai in Maharashtra. It was initially set up in the year 1897. The company has a number of subsidiaries such as Godrej Industries, Godrej Consumer Products, Godrej Agrovet, Godrej Properties, and Godrej & Boyce Manufacturing Company Limited. The Godrej Group has a number of firsts to its name and is considered one of the pioneering companies in India. At present the company exports to over 60 countries around the world. The company manufactures things like broiler feed and layer feed. In addition to these, the company is one of the biggest palm oil producers in India. Godrej Agrovet has achieved this by having a number of palm plantations under its umbrella around the country in order to ensure that it has a steady supply of raw materials in order to manufacture palm oil. It is notable that the company works directly with farmers and cuts out the middleman. The company also manufactures a number of chemicals and pesticides and herbicides through its chemicals division. The company launched its poultry division in 2001. In 2004, the company expanded its presence to include Bangladesh also in the list of countries it operates in. In 2005, Agrovet allied itself with a Taiwanese company.
Management of the Company
The company’s board of directors includes the following people:
Adi B.Godrej - Chairman, Godrej Group
Nadir B.Godrej - Chairman
Balram Singh Yadav - Managing Director
Jamshyd N. Godrej - Director
Vijay M. Crishna - Director
Tanya A. Dubash - Director
Nisaba Godrej - Director
Kavas N. Petigara - Independent Director
Dr. Sudhir L. Anaokar - Independent Director
Amit B. Choudhury - Independent Director
Dr. Raghunath Mashelkar - Independent Director
Dr. Ritu Anand - Independent Director
Aditi Kothari Desai - Independent Director
Roopa Purushothaman - Independent Director
The leadership team of the company consists of the following people:
Balram Yadav - Managing Director Godrej Agrovet
S. Varadaraj - Head - Finance, Systems and Legal
Praful Bhat - Head - Manufacturing and Supply Chain Excellence
Salil Chinchore - Head - Human Resources
Pitambar Narkhede - Head - R&D and Nutrition, Animal Feeds
Sanjivani Sadani - Head - Human Resources, Food Business
Vinay Mishra - Head - Central Buying Organisation
Rakesh Dogra - Head - Crop Protection Business
Arabind Das - COO - Godrej Tyson Foods Limited
Sandeep Kumar Singh - Head - Strategy and Business Development
Nasim Ali - Head - Oil Palm Plantations Business
Raj Kanwar - CEO - Creamline Dairy Products Limited
Rajeev Murthy - Head - Animal Feed Business
Prashant Vatkar - CEO - Godrej Tyson Foods Limited
Mr. Adi Godrej, who heads the privately held Godrej Group, holds a master’s degree from USA. He was on the board of several institutions and has served as President of a number of Trade and Industrial Bodies and Associations in India. He has also received a number of awards including the Rajiv Gandhi Award in 2002 and the Padma Bhushan in 2013. He also received the Lifetime Achievement Award at the Forbes India Leadership Awards 2017.
Mr. Nadir B. Godrej completed both his bachelor’s and master’s degrees in the United States of America. He joined the GAVL (Godrej Agrovet Limited) as a Director in 1991 and currently serves as the Chairman and Non-Executive Director of the company. He has received a number of awards including from the Government of France.
Mr. Balram S. Yadav, has a Post Graduate Diploma in Management from the Indian Institute of Management in Ahmedabad in India. He also has the distinction of having done the Agribusiness Seminar from the Harvard Business School. While he joined the Godrej Group in the year 1990, he has been associated with GAVL only since the year 1992.
Godrej Agrovet Listing in BSE, NSE and Other Indices
The company is listed under the following codes:
- BSE: 540743
- NSE: GODREJAGROEQ
- SECT: Food Processing
- IND: Food Processing - Dairy/Fruits/Others
- ISIN Code: INE850D01014
The following indices contain the company:
- Nifty 200
- Nifty LargeMidcap 250
- Nifty Midcap 150
- S&P BSE 150 MidCap Index
- S&P BSE 400 MidSmallCap Index
- S&P BSE AllCap
- S&P BSE IPO Index
- S&P BSE MidCap
- Nifty 500
- Nifty Midcap 100
- Nifty MidSmallcap 400
- S&P BSE 250 LargeMidCap Index
- S&P BSE 500
- S&P BSE Fast Moving Consumer Goods
- S&P BSE LargeMidCap
- S&P BSE MidSmallCap
The company is listed on the National Stock Exchange of India Limited and The Stock Exchange Mumbai.
The registered office of the company is located at the following address:
Godrej Agrovet Limited, Godrej One, Third Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai - 400079, Maharashtra, India
Telephone Number: +91 22 2518 8010 / 8020 / 8030
Fax: +91 22 2519 5124
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