Godrej Agrovet: Good prospects, but investors should look at stock on dips

The rally in agri-related stocks has helped Godrej Agrovet gain over 31 per cent since May 20. The gains were led by expectations of growth across segments, margin improvement, and earnings recovery in financial year 2020-21 (FY21). The company had posted muted numbers in the March quarter because of Covid-19, which dented the top line and profitability. 

Though the company has a presence across multiple segments, crop protection and animal feed account for 65 per cent of consolidated revenues. In the animal feed segment, demand from segments, such as poultry, has been muted because of the pandemic. While the situation has improved, growth rates for FY21 might stay sluggish before recovering in the second half.