Godrej Agro IPO: Strong prospects

For a company which operates in five different business segments with their attendant complexities, Godrej Agrovet’s ability to report robust top line growth, steady margins and strong return ratios is noteworthy.

The agri-business major, which operates in the animal feed, crop protection, palm oil, dairy and poultry segments, has grown its revenue by an average of 15.5 per cent over the past five financial years. For FY17, reported annual revenue was just under Rs 5,000 crore. Its operating profit margins were in the range of eight-nine per cent in the past three financial years and return on equity (RoE) averaged