02-05-2025
Why are Godrej Agrovet shares falling 10% today? Know More
By Aditya Bhagchandani Published on May 2, 2025, 10:06 IST
Shares of Godrej Agrovet Ltd plunged over 9% to ₹700.65 in Thursday's session, reacting sharply to its Q4 FY25 results. The stock emerged as the top loser on the Nifty 500 index, and is now down nearly 20% from its 52-week high of ₹877, touched in July last year.
The steep fall was triggered by muted financial performance for the March quarter. Revenue, EBITDA, and margins remained flat year-on-year, falling short of investor expectations despite a 24% rise in overall profitability. This growth was largely driven by gains in the domestic crop protection business, vegetable oil division, and improved margins in animal feed.
However, the company's subsidiary Astec Lifesciences reported another challenging quarter due to demand-supply imbalances, volume headwinds, and price pressures in both enterprise and contract manufacturing.
In the animal feed segment, margins were flat, while the dairy division saw margin erosion due to higher procurement costs. Additionally, Godrej Foods' profitability took a hit from lower live bird prices and weaker volume in that category.
Despite the poor show, 4 out of 6 analysts tracking the stock still maintain a 'buy' rating, indicating some long-term optimism. However, one analyst each has a 'hold' and a 'sell' recommendation, reflecting cautious near-term sentiment.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
