Stocks To Buy: 5 Agriculture-Input Stocks For Good Returns In The Medium Term

It's been tough for investors, including long-term investors as markets have been very volatile in the last few days. Sharekhan continues to be optimistic on select stocks from the agri-input space. Here are 5 stocks that the brokerage has a buy call on in its latest report on the chemicals and agri-input space.

Agri-input stocks are good place to invest, says Sharekhan

Agri-input companies' earnings sharply beat estimates as price hikes and volume growth helped mitigate pressure on margins. UPL and Sumitomo Chemical India outperformed backed by strong revenue growth on high global crop prices, Sharekhan has said.

"Agri-input and specialty chemical companies in our coverage universe clocked strong revenue growth led by price hikes and sustained strong demand in overseas/ domestic markets. However, they continued to see margin pressure amid elevated input and high logistics/energy costs. Aggregate PAT for agri-input/specialty chemical companies in our coverage grew by 30%/27% y-o-y with outperformance from UPL, Sumitomo Chemical India, SRF and Aarti Industries," Sharekhan has said.

Buy the stocks of Coromandel International and Insecticides (India)

Sharekhan has a buy on the stock of Coromandel International with a price target of Rs 1,070, while it has also suggested to buy the stock of Insecticides India with a price target of Rs 790.

Coromandel International is one of the largest complex fertiliser manufacturer and marketer in the country, while  Insecticides (India) manufactures all types of insecticides, weedicides, fungicides and PGRs for all types of crops and household.

Both the stocks of Coromandel International and Insecticides India have fallen from 52-week highs recently, following the sharp fall that we have seen.

Buy UPL, Sumitomo Chemical India and PI Industries

Sharekhan has also a buy recommendations on the stocks of UPL, Sumitomo Chemical India and PI Industries. For UPL it has set a price target of Rs 930, while for Sumitomo Chemical the company has set a price target of Rs 500.

Apart from the above, one of the other stocks that the brokerage is recommending is the stock of PI Industries to buy with a price target of Rs 3500.
UPL is a producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals, while Sumitomo Chemical India manufactures, imports and markets products for Crop Protection, Grain Fumigation, Rodent Control, Bio Pesticides, Environmental Health, Professional Pest control and Feed Additives for use in India. PI Industries on the other hand are the pioneers in the introduction of granular formulations in India and are the largest sellers in this segment. The company has now scaled by becoming the biggest producer of generic molecules like Profenofos, Ethion, Phorate. All of the above stocks recommended by Sharekhan have a long-standing track record.

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses, especially as we are seeing volatile markets now. Investors must therefore exercise due caution. Greynium Information Technologies Pvt Ltd, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Please consider investing with utmost caution as markets movement has been very volatile.