Sharda Cropchem Q4 Results Review - Weak Market Conditions Could Pose Some Near-Term Challenges: Dolat Capital

Recovery in Europe to drive growth in FY24.

<div class="paragraphs"><p>A farmer using tractor to spray persticide in his farm. (Source: Company website)</p></div>
A farmer using tractor to spray persticide in his farm. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

Sharda Cropchem Ltd.'s revenues grew by 3.3% YoY to Rs 14.8 billion (our estimate: Rs 16.4 billion) with gross margins expanding by 235 basis points YoY to 31.6% driven by higher sales in Europe.

Ebitda grew by 9.6% YoY to Rs 3.2 billion (our estimate: Rs 3.4 billion) translating to an Ebitda margin expansion of 124 bps to 21.5%.

Profit after tax grew by 13.4% YoY to Rs 2 billion (our estimate: Rs 1.8 billion) benefitting from a lower depreciation charge (down 5.7% YoY).

We believe that despite near term concerns Sharda Cropchem will be able to achieve its guided revenue and margin target for FY24 largely led by improved performance in its largest region of Europe. We like Sharda Cropchem on account of its-

  1. asset light model,

  2. strong product registrations (2,821 products registered with 1,143 products in the pipeline),

  3. strong presence in regulated markets,

  4. highly flexible operating model and widespread distribution network.

We have broadly maintained our estimates for FY24/FY25, which are largely in line with the guidance provided by the company.

Click on the attachment to read the full report:

Dolat Capital Sharda Cropchem Q4FY23 Result Update.pdf
Aarti Industries Q4 Results Review - Muted Show; Headwinds Persist: Prabhudas Lilladher


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.