Indian crop protection market growth hits air pocket - Kotak

Rallis India

27/12/2022 09:53

** Analysts from Kotak Institutional Equities see turbulent
earnings Dec quarter earnings for Indian crop protection
companies due to higher inventories 
    ** Farmer demand significantly impacted by erratic rainfall,
leading to crop damage, low levels of pest infestation and loss
of sprays, analysts say
    ** Agrochemical industry faces risk of sales returns by
channel partners due to correction in vegetable and fruit prices
- Kotak 
    ** Although sales growth appears to have slowed in near
term, 2023 outlook is still generally believed to be fairly
healthy, with input costs also falling, particularly fertilisers
- analysts
    ** Falling agrochemical prices a headwind for revenue growth
in the year ahead, Kotak analysts write
    ** Rallis India  RALL.NS , National Fertilizers  NAFT.NS ,
Coromandel International  CORF.NS , Chambal Fertilisers
 CHMB.NS , Punjab Chemicals And Crop Protection  PCHM.NS , up
between 0.4%-10% as of 2:43 p.m. IST
    ** Stock moves so far this year: Rallis India  RALL.NS 
(-16.1%), National Fertilizers  NAFT.NS  (+23.4%), Coromandel
International  CORF.NS  (+15.4%), Chambal Fertilisers  CHMB.NS 
(-26.8%), PUNJAB Chemicals And Crop Protection  PCHM.NS 
(-24.7%)
 (Reporting by Yagnoseni Das in Bengaluru)
 ((yagnoseni.das@thomsonreuters.com;Mobile: +91 6001289066))