Indian agro chemical firms to see two more challenging quarters - Kotak

Sumitomo Chemical India

17/11/2023 08:41

** Indian fertilizer and agro-chemicals companies will
likely face challenges for two more quarters on destocking by
customers, Kotak Institutional Equities analysts said
    ** Add volume growth will remain under pressure until (and
including) Q1 calendar year 2024 on a yoy basis due to
destocking
    ** Outlook for the winter-sown crop season is somewhat
challenging in India, especially in the south, due to lower
water levels - brokerage
    ** Says recovery after Q1 CY2024 is seen only as modest, and
the recent softness in corn prices is a worry in terms of
end-demand for CY2024
    ** Ten out of 20 companies in Kotak's coverage universe,
including Best Agrolife  BESA.NS , Bharat Rasayan  BRSN.NS ,
Coromandel  CORF.NS , India Pesticides  IDIP.NS , Meghmani
Organics  MEGH.NS , Sumitomo  SUMH.NS  and UPL  UPLL.NS  posted
fall in core earnings and revenue in Q2 vs year ago
    ** Two cos, Astec LifeSciences  ASTE.NS  and Sharda Cropchem
 SHCR.NS , reported losses from yr ago profit 

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))