SID ki SIP: Analyst sees up to 38% upside in 4 agri-realted stocks; advises investors how to allocate funds in these stocks

In a special edition of SID ki SIP (Siddharth Investment Portfolio), Siddharth Sedani, Senior VP - Equity Support and Product Sales at Anand Rathi brokerage firm, listed four agriculture-related stocks with an upside of up to 38 per cent on the back of Harvesting Heroes theme. 

According to the market analyst, India is at all-time production capacity with respect to agricultural products such as wheat, and mustard among others.  

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Besides, monsoons this year are likely to be normal as expected and even a global surge in fertilizer prices due to geopolitical situations between Russia and Ukraine may also be seen as an advantage, he added. 

The market analyst suggested to Buy four farm-related stocks ahead of monsoons to reap results in the next couple of months. 

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1) RCF – Target: Rs 145, Upside: 38%, Allocation: 30%, Stop Loss: 75

RCF (Rashtriya Chemical Fertilizers) 85 per cent of revenue is garnered from the fertilizer business. The government is the biggest stakeholder in the company. It has a good land bank and a new urea plant of around Rs 7500 crore is scheduled to launch.  

2) UPL – Target: Rs 940, Upside: 17%, Allocation: 30% 

UPL is the fifth largest generic agrochemical company in the world with a supply capacity to around 150 countries. The company’s key products have strong demand in the market; margins are good.  

3) Rallis India – Target: 350, Upside: 25%, Allocation: 20% 

The company is in the business of crop protection and crop care. It has a strong network of around 6000 dealers and 80000 retailers. The company’s seed business is quite strong and has a CAPEX of around Rs 250 crore.  

4) Coromandel International – Target: 1012, Upside: 21%, Allocation: 20% 

The Murugappa group company is mainly in the business of fertilizer, crop protection, and crop protein. The company’s some key products market share is about 40 per cent. The company has a strong management team.