Target: ₹1,250
CMP: ₹813.50
Healthy, 35 per cent y-o-y, volume growth and market-share gains in its key regions drove Sharda Cropchem’s Q2 results. Recovery has been strong in the past few quarters. Q2 revenue shot up 20 per cent y-o-y to ₹930 crore, driven by +35/-17/+2 per cent volume/price/Fx y-o-y. Agrochemicals’ about 36 per cent y-o-y volume growth was seen across regions, with Europe and NAFTA being key contributors.
Ahead, we believe prices have bottomed out and management is confident of price hikes in the near term as volumes would rise on the company expanding its reach, penetrating markets and entering new ones.
Management expects the growth momentum to persist on a) an extensive registration pipeline, ₹450-500 crore capex driving revenue growth, and market-share gains and operational efficiency supporting growth. With realisations likely to rise in a better demand context globally, management maintains its 15 per cent annual revenue growth guidance, with 15-18 per cent EBITDA margins in FY26. Besides, it is optimistic about the non-agrochemical performance and hopes demand rises.
Further, concerns about the US-China trade war are now subsiding, providing stability to organic growth. That said, we expect 14/26/30 per cent revenue/EBITDA/PAT CAGRs over FY25-28. We retain a Buy recommendation, with an unchanged TP of ₹1,250, 18x H1 FY28 EPS.
Published on November 3, 2025
