Prabhudas Lilladher Assigns Buy On 6 Agro Chemicals Stocks - 2 Large Cap, 2 Midcap, 2 Small Cap

Leading brokerage firm Prabhudas Lilladher has come up with a Buy recommendation on 6 stocks from Agro Chemicals Sector in a recently published report on the sector. The brokerage listed stocks of Coromandel International, Dhanuka Agritech, P.I. Industries, Sharda Cropchem, Sumitomo Chemical India, and UPL with a Buy rating. The stocks are likely to give a decent return of up to 39% if purchased at the current market price.

All eyes on the rain God..!!

Prabhudas Lilladher said, "We hosted Dr. D S Pai, (Scientist and Head climate services division) of IMD (India Meteorological Department) to take an update on current monsoon trend and impact of El-Nino in the upcoming season. Key takeaways are: 1) probability of El-Nino occurrence remains high with chances of getting preponed to former dates than earlier expectations in 2nd half of the monsoon season (i.e from Mid- august to September); 2) Northwest and some parts of central India likely to receive deficit rainfall, while Southern peninsula and North-east India at better off position; 3) arrival of monsoon delayed due to Cyclone Biporjoy, resulting in deficient rainfall (down 92% of LPA) in June month and 4) IMD remains hopeful of revival in rainfall from 3rd week of June'23 till mid-July, which would aid in narrowing down of deficient rainfall."

It added, "Accordingly, for our agrochemical coverage universe we have factored in revenue growth of 9.7% YoY in FY24E vs 8.7% CAGR clocked over FY14-16 (FY15/FY16 witnessed deficit rainfall). We continue to maintain our cautious stance on the sector and prefer PI Industries and Sumitomo Chemicals in the agrochemicals space. Coromandel International remains our preferred pick in fertilizer space."

Stocks To Buy

1. Coromandel International Ltd.

Prabhudas Lilladher assigned a target price of Rs. 1,310 apiece on the stock with Buy rating, claiming 39% potential upside from its current level. Its current market price is Rs. 944.50 apiece. It has given 3.95% positive return in 1 year, 30.57% in 3 years, and 129.29% in 5 years, respectively.

2. Dhanuka Agritech Ltd.

The brokerage has come with Buy rating on Stock for a target price of Rs. 950 apiece. It claims a potential upside of up to 18% from its current level. The stock's last traded share price on NSE is Rs. 805.45 apiece. It has given 19.02% positive return in 1 year, 11.59% in 2 years and 37.8% in 5 years, respectively.

3. P.I. Industries Ltd.

The brokerage places Buy in stock with a target price of Rs 4560 apiece. It sees a potential gain of up to 18% if purchased at the current market price. The stock's current market price is Rs. 3,879.95 apiece. The stock has given decent returns in the past 1 year. It gave 57.31% positive return in 1 year, 150.01% in 3 years and 403.69% in 5 years, respectively.

4. Sharda Cropchem Ltd.

The brokerage initiates a Buy on the stock with a target price of Rs. 640 apiece. It sees a robust upside of up to 18% from its current level. The stock closed in green at Rs. 545.45 apiece, up 2.33% from its previous close. It has given 8.56% negative return in 1 year, however, it gave 180.2% positive return in 3 years and 40.08% in 5 years, respectively.

5. Sumitomo Chemical India Ltd.

Brokerage initiates Buy on the stock with a target price of Rs. 550 apiece for a potential gain of up to 27%. The stock ended 1.4^% higher at Rs. 434.70 apiece. The stock has given 4.14% positive return in 1 year and 46.81% in 3 years, respectively.

6. UPL Ltd.

Buy the stock of UPL with a target price of Rs.850 apiece. The stock is likely to give a decent return of 25% if purchased at the current market price. The stock's current market price on NSE is Rs. 683.45 apiece. It has given 6.64% positive return in 1 year, 56.33% in 3 years and 57.07% in 5 years, respectively.

Disclaimer - The above Agro Chemicals stocks have been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.