Agrichemical exporters expected to clock better growth than domestic peers

Brokerages have a mixed outlook on margin trajectory for the sector

Near-term challenges for domestic agrochemical companies could see them underperforming compared to exporters. While higher demand and currency gains should aid export growth, inventory destocking could hit their domestic peers on margins.

Brokerage Prabhudas Lilladher Research believes that export-oriented players such as PI Industries, Sumitomo Chemicals and UPL are better placed than pure play domestic players like Dhanuka Agritech and Bayer CropScience in the near term.

“Near-term challenges pertaining to provisions for high cost inventory amid a falling raw material cost scenario coupled with higher sales return from kharif season and pricing pressure in the generic segment will likely weigh