HSBC has initiated coverage of Indian agricultural sector with following stocks
Kaveri Seed Company – seed supplier (overweight’ ratings)
PI Industries Ltd – agrochemical firm (overweight’ ratings)
HSBC cited their “growth profiles, favourable sector trends and attractive valuations
HSBC said projections for country’s food demand could see agricultural yields improving by 1.7 per cent annually, making companies in this segment “stronger gainers in coming years.”
The investment bank also initiated UPL limited with an “overweight” rating, calling the company “India’s only genuine play on global crop protection.”
But HSBC initiated Rallis India Ltd with a “netural” rating, saying a recent rally has made valuations rich.