Why Godrej Agrovet Share Price is Falling

The Indian stock markets staged a good recovery in April, despite geopolitical tensions and global economic factors.

However, not all stocks are rising. Individual stocks have reacted to news. One such stock is that of Godrej Agrovet. The shares of the company are falling in trade today, despite the prevailing bullish sentiments.

Let's take a closer look at the factors leading to the fall in the share of Godrej Agrovet.

#1 Quarterly Results Disappoint

Godrej Agrovet reported its quarterly results for the fourth quarter FY25 with a consolidated net profit of Rs 661 million (m), compared to Rs 654 m in the same quarter last year. However, the total revenue from operations remained almost flat at around Rs 21.3 billion (bn).

For the entire year FY25 consolidated revenue from operations was Rs 93.8 bn compared to Rs 95.6 bn in FY24.

The company reported consolidated EBITDA, excluding non-recurring & exceptional items, of Rs 8.45 bn in FY25 compared to Rs 7.57 bn in FY24.

The performance of the company which was almost flat, particularly for the fourth quarter is what disappointed the markets.

#2 Poultry Business Faced Challenges

The second reason for the fall in the stock price was due to decline in topline and profitability in the poultry business.

One of the reasons for the same was on account of lower volumes in live bird category. This was as the company adopted a strategy to improve the salience of branded categories.

While this led to an improvement in the volumes in the branded category, elevated input costs and unfavourable product and channel mix adversely impacted profitability.

What Next?

Godrej Agrovet continues to create value for its stakeholders by focusing on margin expansion initiatives. It's also important to note that some of the other businesses of the company continue to do well.

The domestic crop protection business delivered stellar performance in FY25 primarily driven by higher volumes of in-house products.

The performance of the vegetable oil business improved significantly on the back of improved end-product prices.

The dairy business too continued to build on the turnaround and profitability seen earlier. The improved year-on-year performance was due to focused efforts on improving operational efficiencies and improved milk spread.

Despite a sluggish quarter, the past track record and focus on margin expansion should augur well for Godrej Agrovet going forward.

How Shares of Godrej Agrovet have Performed Recently

Over the last one month, the share price of Godrej Agrovet has lost 12.8% from levels of Rs 781 to the current levels of Rs 680.

In past one year, shares of the company have gained 23.4%.

The stock hit a 52-week high of Rs 877.85 on 15 July 2024. The stock also hit a 52-week low of Rs 475.70 on 4 June, 2024.

About Godrej Agrovet

Godrej Agrovet is a diversified Indian agribusiness conglomerate.

It is one of India's largest organised players in compound animal feed, offering cattle, poultry (broiler and layer), aqua (fish and shrimp), and specialty feeds.

It operates 31 manufacturing plants with a wide distribution network covering over 4,200 distributors across 31 states and union territories.

The company produces agrochemicals including plant growth regulators, organic manures, herbicides, and agrochemical active ingredients through its majority stake in Astec LifeSciences.

It also operates large-scale poultry farms through a joint venture with Tyson Foods (Godrej Tyson Foods), producing packaged poultry products under brands like Good Chicken and Yummiez.

The company is also engaged in milk procurement, processing, and distribution of dairy products under the brand Jersey, focusing on modern technology and sustainable practices.

To know more, check out Godrej Agrovet fact sheet and latest quarterly results. You can also compare Godrej Agrovet with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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