Kotak Raises Target Price
This comes after Kotak Institutional Equities retained and thereby recommended a ‘Buy’ call, with a target price of ₹1,010 per share on September 1. This target price is pitching a 64.22% upside, compared to its previous day’s closing price of ₹615 per share.
This is also higher than the previous target of ₹850 issued in the note on July 8, 2026. This new rating marks a 19% rise in target price by the brokerage.
The brokerage noted that the company expects revenue to hit ₹4,500 crore by FY31 with a margin of over 23%. Kotak estimates the growth is likely to remain solid at least until 2040. The brokerage also highlighted that the company’s palm oil business clocked ₹430 crore in EBITDA in FY26 and that Godrej Agrovet expects this palm oil EBITDA to exceed ₹1,000 crore by FY31. This will be driven by double-digit growth in FFB volumes
Sharp increase in contribution from value-added products
Kotak emphasised palm oil’s long growth runway, margin stability & high Return on Capital Employed. The note added that this segment could be worth more than the company’s current market cap of ₹12,872.32 crore. Kotak noted that the palm oil business is enjoying the status of a local monopoly. As a result, Kotak raised the EBITDA multiple to 18X from 15X.
Earlier, in August, while speaking to CNBC-TV18, Abhijit Akella, Analyst at Kotak Institutional Equities, said that Godrej Agrovet is a stock he finds interesting, with valuations having fallen sharply over the past few years even as the underlying business mix has improved. The oil palm business, in particular, could become a significant value driver.
Furthermore, apart from Kotak, 5 other analysts cover the stock, and all 5 recommend a ‘buy’ rating.
Q1 Results
When we look at the company’s Q1 performance, the company came up with mixed numbers. In the first quarter of FY27, the company saw its profit numbers decline, falling 13.8% year on year. The consolidated net profit figure fell to ₹128.3 crore for the quarter ended June 30, 2026, down from ₹149 crore in the corresponding quarter last year.
Meanwhile, the revenue from operations rose 9.2% year-on-year to ₹2,855.2 crore from ₹2,614.3 crore a year earlier, potentially indicating steady growth in the company’s business operations.
Nevertheless, operating profitability came under pressure during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 10.9% year-on-year. The EBITDA slipped to ₹240.1 crore from ₹269.6 crore in the year-ago period.
As a result, EBITDA margin contracted to 8.41% from 10.32% a year earlier.
Stock Performance
The company’s shares have risen over 12% intraday, rising for the second straight row. The stock has closed in the green on only 4 out of the past 10 sessions.
Shares have gained 22.42% over the past month. The shares are trading 9.08% below the 52-week high of ₹760.00. The shares are trading 36.53% above the 52-week low of ₹506.10. The current stock price is at ₹670 per share.
Also Read: Godrej Agrovet Q1 profit falls 14% as margin pressure offsets revenue growth
