Buy AWL Agri Business: target of Rs 250: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Edible Oils growth: 23% YoY revenue growth, driven by higher realisations and 5% volume growth, with EBITDA per MT at INR 4,100.
  • Food & FMCG expansion: 32% YoY revenue growth, with UVG of 28%, and EBITDA margin at 3.2%, within the guided range.
  • Industry Essentials growth: 39% YoY revenue growth, driven by oleochemicals and specialty chemicals, with EBITDA margin above the guided range.
  • Alternate channels and distribution: Quick commerce grew 54% YoY, and direct retail reach increased to ~0.97mn outlets.

Thesis Validation Checklist

  • Revenue growth: Monitor broad-based growth across segments.
  • Margin expansion: Track improvement in operating leverage and EBITDA margin.
  • Distribution efficiency: Watch for improvement in throughput and distribution efficiency.
  • Non-GT channels: Monitor the growth of alternate channels, including quick commerce and branded exports.