Buy Sharda Cropchem, target price Rs 660: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Sharda Cropchem with a target price of Rs 660. The current market price of Sharda Cropchem Ltd. is Rs 478.

Sharda Cropchem, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 4281.41 Crore) operating in Pesticides/Agro Chemicals sector.

Sharda Cropchem key Products/Revenue Segments include Agrochemicals, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 731.75 Crore, down -13.38 % from last quarter Total Income of Rs 844.78 Crore and up 11.61 % from last year same quarter Total Income of Rs 655.63 Crore. Company has reported net profit after tax of Rs 12.08 Crore in latest quarter.

The company’s top management includes Mr.Ramprakash V Bubna, Mrs.Sharda R Bubna, Mr.Ashish R Bubna, Mr.Manish R Bubna, Mr.M S Sundara Rajan, Mr.Shitin Desai, Mr.Shobhan Thakore, Ms.Sonal Desai. Company has BSR & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 9 Crore shares outstanding.

Investment Rationale
Citing positive growth momentum across regions coupled with price hikes in the recent past, the company's management remains confident of achieving 15-20%YoY revenue growth for FY23E, however adverse currency movement is likely to exert pressure on margins in the near term. The brokerage maintains buy on the counter with a target price of Rs 660 based on 14xFY25E EPS.

Promoter/FII Holdings
Promoters held 74.82 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.16 per cent, DIIs 12.93 per cent.