The company is present in five business verticals - animal feed, crop protection, oil palm, dairy, and poultry and processed foods.
In FY16, it was the leading compound animal feed company in India based on installed capacity (source: CRISIL).
As of March 31, 2017, Godrej Agrovet was the largest crude palm oil producer in India in terms of market share (source: Oil Palm Report).
Its strong parentage and established brands strengthen its position in all business segments.
The price band for the IPO was Rs 450– 460 per share.
Godrej Agrovet has a capital efficient and asset-light model. Its animal feed, crop protection, and vegetable oil (oil palm) segments generated higher ROCE of 73%, 59%, and 34% respectively in FY17.
The company’s sales and operating profit have grown at a healthy CAGR of 15.5% and 22.6% (over FY13-17), while adjusted net profit after tax grew at ~24% CAGR over the same period.
We believe the company has attractive long-term prospects.