#Agriculture and Godrej Agrovet

Hi friends Narendra Modi Government is closely working for farmers to double their income up-to 2022. so today I’m going to discuss a company that will emerge as one of the biggest beneficiary in that sector which can give huge returns to their share holders.

Company has presence in Agriculture sector, Dairy sector, Animal feed, Aqua feed sector etc. Company is backed by a reputed Indian Group. Group had started business in India before Indian Independence.

Yes you people are guessing right I’m talking about Godrej Group. Godrej Group was founded by Ardeshir Godrej in 1897 is a well diversified conglomerate. Godrej are doing businesses all over the world.  It has presence in #FMCG, #REALTY, #DAIRY, #AGRI etc.

Godrej Agrovet Limited is an Indian Animal Feed Company and highly diversified across sectors. Company is mainly dealing in #Animal-Feed, #Palm-oil plantation, #Aqua-feed, #Crop-Protection, #Dairy-Products etc.

Let’s discuss Animal feed products in short

#In Animal-Feed they are having products for Cattle, Poultry, Aqua 3and Specialty Feed.

  1. Cattle Feed mainly for increasing milk production
  2. Poultry Feed mainly for Birds, used specially for Chicken Production
  3. Aqua Feed used for Fish & Shrimps production
  4. Specialty feed used for faster weight gain like for Sheep & Goats, Pigs, Ducks & Quails etc.
Palm-Tree
photo taken from Company Site

#In Palm oil they have developed more than 60,000 hectares of plantation across India mainly in Andhra Pradesh, Tamil Nadu, Telangana, Goa, Maharashtra & Mizoram and company has set-up 5 oil mills across the India to Meet Indian Edible Oil Requirement.

#In Crop Segments Company has presence in Plant-Growth Regulators and Bio-Stimulants which is used to increase yield with less input. It also operates in Herbicides, Insecticides & Fungicides, Soil Conditioners and Organic Manure also.

It has joint venture with Tyson foods U.S.A to manufacture and market processed poultry and vegetarian foods. Company markets their products with Real Brand like Real Good Chicken, Real Good Yummiez. They have variety of ready to cook products like nuggets, burger patties, vadas, tikkis, popcorn, sausages, parathas, French fries, sweet corn etc.

Company operates in Dairy Products with Brand Name “JERSEY”. Company has 1.36 million litres of Milk processing facilities across India with 119 Chilling centres.  Company has presence mainly in southern region like Andhra Pradesh, Telangana, Tamil Nadu, Karnataka & Maharashtra.

Some of the products are Milk, Paneer, Ghee, Ice-Creams, Curd, Lassi, Butter Milk, Flavoured Milk etc.

Well we have shortly discussed about company and about their products they are mainly dealing.

But we are here to make money so let’s check company’s Balance sheet how it looks?

Balance Sheet Godrej Agrovet
Mar ’19
Sources Of Funds
Total Share Capital 192.03
Equity Share Capital 192.03
Share Application Money 0.00
Preference Share Capital 0.00
Reserves 1,198.85
Revaluation Reserves 0.00
Networth 1,390.88
Secured Loans 108.70
Unsecured Loans 0.00
Total Debt 108.70
Total Liabilities 1,499.58

Let’s check last 3 Fiscal Years Performances

FY Revenue in Cr Profit in Cr EPS in Rs
2016-17 4911.08 254.37 12.55
2017-18 5185.52 234.96 12.02
2018-19 5851.88 337.22 16.99

Company is growing steadily and if we check the Godrej Group’s track record it never disappoints their investors. Godrej Group has delivered at its best and we all know about that.

I if you take my opinion we can invest in Godrej Agrovet also because In India now’s the time for Agriculture revolution many engineers and doctors are turning to agriculture. We can see in youtube and in news also.

Note: Please consult your Financial Advisor Before taking a Buy Call.

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