Shares of agrochemicals stock Sharda Cropchem have delivered exceptional returns in the last 3 years. Since March 2020, the stock has surged nearly 5 times.
The stock has skyrocketed 376 percent to ₹472 currently from ₹99, its all-time low hit on March 25, 2020.
However, in the last 1 year, the stock has shed nearly 30 percent. It has fallen 4.5 percent in February so far after a 4 percent fall in January. In December 2022, the stock surged nearly 25 percent.
Sharda Cropchem Limited is a fast-growing global agrochemicals company with an asset-light business model. The company is engaged in the marketing and distribution of a wide range of formulations and generic active ingredients in more than 80 countries.
In the December quarter, the company's net profit rose 6.07 percent to ₹108.40 crore as against ₹102.20 crore during the same period a year ago. Sales also advanced 15.63 percent to ₹1,017.30 crore in Q3 as against ₹879.81 crore during the previous quarter that ended December 2021.
In an exchange filing, the company said, "The Board of Directors considered and declared interim dividend at the rate of ₹3 per equity share of a face value of ₹10 each for the financial year 2022-23."
The record date of the interim dividend would be February 7 and the dividend would be paid or dispatched on or before February 23.
On the back of better-than-expected results, domestic brokerage house Anand Rathi sees further upside in the stock. The brokerage has a ‘buy’ call on the stock with a target price of ₹620, indicating a potential upside of 20 percent.
"Sharda Cropchem share has been under pressure for quite some time but at this juncture, it's trading near its crucial support. Previously the stock turned from this level and we saw a rally toward ₹700 per share level. On daily chart it has made nice rounding base near ₹500 to ₹510 levels along with multiple bullish candle-sticks pattern which is looking lucrative," explained the brokerage.
It expects a sustained revenue flow for the company, and is positive about its future performance, considering its focus on registrations, a rising proportion of high-margin products and deeper penetration.
It advises traders to go long on the stock with a stop loss of ₹465.
Meanwhile, Prabhudas Lilladher stated that with good growth momentum across regions coupled with price hikes in the recent past, Sharda Cropchem’s management remains confident of achieving 15-20 percent YoY revenue growth in FY23E.
The company has taken several measures to mitigate adverse forex impact in the recent past which should support margins, it added. The brokerage maintains a ‘buy’ rating with a target price of ₹660 per share, implying a 37 percent upside.
7 analysts polled by MintGenie on an average have a ‘strong buy’ call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
