Dolly Khanna exited Sharda Cropchem in June. Anand Rathi kept its ₹1,350 target, citing a volume revival, net cash of ₹7.5 billion, and a valuation of 11x forward earnings.
Dolly Khanna is out of Sharda Cropchem Ltd. The June 2026 shareholding pattern no longer lists her name among shareholders with more than a 1% stake. She held 1.09% at the end of March. The change means she either sold her entire position or cut it below the reporting threshold.
The exit of a well-known individual investor often triggers questions about a stock's outlook. Anand Rathi, however, is not budging. The brokerage published a research report on July 30 maintaining a target price of ₹1,350 on Sharda Cropchem, implying a 64% gain from current levels.
The call rests on two pillars: a volume recovery and a cheap valuation. After a rough patch for the global agrochemical industry, where inventory corrections and weak pricing squeezed margins, Sharda Cropchem is seeing signs of a rebound. The brokerage expects that revival to sustain earnings growth over the next few years.
The stock trades at roughly 11x estimated FY27 earnings and 10x estimated FY28 earnings. Anand Rathi considers that attractive given the improving trajectory and the company's return profile.
Sharda Cropchem's balance sheet is a key part of the story. The company holds net cash of more than ₹7.5 billion, giving it the flexibility to fund growth initiatives and navigate industry cycles without relying on debt. That cash cushion also limits downside risk during market stress.
The brokerage estimates Sharda Cropchem will deliver returns on capital employed of 18-20% and returns on equity of 16-18%. Those are among the strongest profitability ratios in the sector and point to efficient capital allocation.
Individual portfolio decisions like Khanna's can stem from many factors: profit booking, rebalancing, liquidity needs, or a shift in allocation preferences. They do not automatically signal a deterioration in a company's underlying business. Anand Rathi's analysis suggests the fundamentals are moving in the other direction. With volume recovery gaining traction, a debt-free balance sheet, strong profitability, and a valuation of 10-11 times forward earnings, the stock's risk-reward profile is worth a look for investors focused on the operating performance rather than the shareholder list.
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