Specialty, Agro Chemicals - Awaiting A Strong Season Ahead: Systematix

Systematix Research Report

We hosted representatives from five leading companies at our insightful Specialty and Agrochemicals conference held on June 19, 2024. Managements of the agri input companies were gung-ho on improved demand environment driven by low channel inventory, high commodity prices, and forecast of an above normal monsoon.

They expect farmers’ earnings to surge this year, likely driven by higher agri-commodity prices and superior yields across most crops.

On the policy front, a likely increase in fertiliser subsidy should be a breather, enabling farmers to keep costs under control.

We view FY25 as a robust year for India’s agri sector. Agrochemical companies with higher herbicide contribution could post 12-15% growth versus anticipated 8-10% average growth for the industry.

Replenished ground water table and high commodity prices would ensure double-digit growth in the rabi season as well.

We expect all major agri-input companies to benefit. We maintain our positive stance on the sector.

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