Budget My Pick: Sharda Cropchem stock is a top buy with 1-year view for analyst Siddharth Sedani; 30% upside expected

In today’s edition of Budget My Pick (#BudgetMyPick), market expert Siddharth Sedani recommended Sharda Cropchem Limited as a stock to buy for handsome gains ahead of the Union Budget 2022.  

The company has business interests in agrochemicals and non-agrochemical.  

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Sedani said that Sharda Cropchem has business interests in agrochemicals, industrial chemicals and pharma intermediaries.  

He recommends a buy on this share for a price target of Rs 480. He has a one-year view on this stock. The stock was trading at Rs 369 on the NSE around 1:35 pm on Monday and was up 1.6 per cent from the last closing price on Friday.  

This analyst said that the company has a strong product pipeline with a very robust distribution network.  

Talking abut the financials of the company, Sedani said that the agrochemicals business is expected to see a CAGR (Compound Annual Growth Rate) of 16 per cent while the non-agro business is likely to witness a 10 per cent CAGR over the next two years. 

Meanwhile, the profits are expected to see a 19 per cent uptick during this period, he further said. 

The company is also planning to increase its capacities through internal accruals, Sedani said. 

The current valuations are attractive and makes it a fit investment grade pick, he said. The stock has been picked with the budget in view.  

Many analysts have said that there could be big bang announcements for the agriculture sector in view of the upcoming elections in agrarian states Uttar Pradesh and Punjab.    

The former comprises of formulations and generic active ingredients in fungicide, herbicide and insecticide segments for protecting different kind of crops. The Mumbai-based company also serves turf and specialty markets and in biocide segment as disinfectants.  

In the latter, the business comprises of belts, general chemicals, dyes and dye intermediates. 

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जानिए #BudgetMyPick में मार्केट एक्सपर्ट सिद्धार्थ सेडानी ने किस शेयर को दिया बजट से बजट तक दमदार मुनाफे के लिए?#BudgetOnZee #Budget2021 #GrowthBoosterZee@AnilSinghvi_ | @s_sedani05 pic.twitter.com/Q771D3BGBp

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The stock has moved both ways over the past 4-5 trading sessions.