El Nino to provide opportunity to enter strong agri-linked firms in India - brokerage

Coromandel International

22/03/2023 07:45

** El Nino event is a threat to India's agriculture sector,
which contributes 14% to the country's GDP - Motilal Oswal
    ** "Historically, El Nino events have resulted in below
normal monsoon or drought in India" - brokerage
    ** Potential correction in agrochemical/fertiliser stock
prices due to El Nino provides opportunity to build positions in
companies with strong fundamentals - Motilal Oswal
    ** Identifies PI Industries  PIIL.NS , Coromandel  CORF.NS 
and Godrej Agrovet  GODE.NS  as top picks in the
agrochemical/fertiliser space
    ** PIIL stock up 2.7%, while both CORF and GODE rise more
than 0.5%
    ** Probability of El Nino occurrence in the later part of
CY2023 stands at 45%-60%, according to data from agencies across
the world
    ** Since agri-linked firms have a strong correlation with
monsoon, their revenue growth slows during events like El Nino -
Motilal Oswal



 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))