Key highlights are

(1) postponement of kharif sales to 3Q

(2)rabi season started on positive note

(3) US market faced pressure led by high channel inventory

(4) softness in raw material prices could support margin

(5) ongoing capex is on schedule; likely to reap benefits from FY21E

(6) New product development in the metahelix business to be the key driver. We are positive on the stock led by 1) focus on domestic business driven by new product launches and improved distribution and 2) planned capex of INR8bn over 5-6 years vs. INR6.7bn over the past 10 years.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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