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COMPANY OVERVIEW

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Godrej Agrovet Limited is a adapted analysis and development focused agri-business company. They accomplish beyond bristles business verticals: Beastly feed, Crop protection, Oil palm, Dairy and Banty and candy foods.

The aggregation has a 50:50 collective adventure in Bangladesh, ACI Godrej, which produces beastly augment articles in that country. In India, the aggregation is the better architect of beastly augment in agreement of capacity. The aggregation enjoys a pan-India arrangement of administration with about 4,000 distributors.

In the crop aegis business, the aggregation acquired Astec Lifesciences, a architect of agrochemical alive capacity and formulations which are awash beyond the globe. The aggregation has active a MOU with 9 accompaniment governments which gives them admission to 61,700 acreage of acreage for oil approach plantation, which is 1/5th of the acceptable acreage for such plantation.

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Godrej Agrovet is the better ambassador of approach oil in India.

In the dairy business, they accomplish through their accessory Creamline Dairy and their articles are marketed beneath the Jersey cast beyond the states of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra.

Under the banty business they accept a collective adventure with Tyson Foods Inc., USA, which is an accomplished amateur in the acreage of affairs banty and candy products. Godrej Agrovet sells banty beneath the Real Good Chicken cast and veg and non-veg candy foods beneath the Yummiez brand.

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HIGHLIGHTS

- Pan-India attendance with all-encompassing accumulation alternation and administration network.- Adapted business with synergies in operations.- Strong R&D capabilities.- Strong ancestor and accustomed brands.- Accomplished promoters and administration team.

Objects of the issue

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- Repayment or accommodation of alive basic accessories availed by the aggregation (Rs. 100 Cr.)- Repayment of bartering affidavit issued by the aggregation (Rs. 150 Cr).- General accumulated purposes, accountable to applicative laws.

OUR VIEW

The aggregation is able-bodied adapted with artefact offerings in 5 segments with anniversary articulation actuality able-bodied accustomed in its space. The acquaintance and abetment of one of the oldest business houses of the country, Godrej, and cardinal collaborations and acquisitions with industry experts has helped the aggregation in accomplishing success in these segments.

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On the banking front, the aggregation has a consistently growing top band which has developed at a CAGR of 12% over the aftermost 5 years. The EBITDA and PAT accept developed at 21% and 23% CAGR over 5 years.in F.Y. '17 the aggregation had ROE of 22% and ROCE of 31%. The Profit Margin for F.Y. '17 was 5.5%. Looking at the valuation, the allurement amount of 460 comes at 7 times the book amount and the P/E Ratio comes to about 40 and seems to be analytic priced.

Since the aggregation is into beastly products, on moral area as an centralized action we do not acclaim the aggregation and advance investors to deduce their own appearance based on the business and financials.



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