SIP in Stocks: Siddharth Sedani recommends 'Crop Club' basket for up to 12 months; PI Industries, UPL on the list
Stock Market Investment: Market expert Siddhaarth Sedani of Anand Rathi brokerage has recommended a stock SIP basket with the theme called "Crop Club" — related to crops related firms' scrips for the next 6-12 months.
SIP in Stocks: Are you looking for stock investment ideas via the Systematic Investment Plans (SIPs) route amid the current market trend? As the IMD has projected that the southwest monsoon arrived 8 days early, which is happening for the first time in 16 years. It is also expected to be 105 per cent of the long-term average, a market expert is seeing opportunities to book profit amid monsoon season.
In conversation with Zee Business Managing Editor Anil Singhvi, analyst at Anand Rathi brokerage, Siddhaarth Sedani, has recommended stock SIP basket investment strategy with the theme called "Crop Club" — related to crops related firms' scrips for the next 6-12 months.
According to Sedani, this agrochemical theme focused on stocks that help farmers in sowing and crop protection, as the monsoon is expected to be early and above normal this year.
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
SIP in Agrochemical Stocks; PI Industries, UPL on his radar
"Food grain production is expected to be 254 million tonnes, compared to 234.1 million tonnes previously — a strong growth, possibly in double-digit volumes," according to him.
Agrochemical Growth
"The agrochemical industry could grow at 3.5 per cent in FY26, while globally it’s projected to grow at only 1.5 per cent–2 per cent. So the agrochemical industry is showing strong potential," Sedani said.
Here is a list of stocks that the market expert recommends investing in via the SIP route:
Stock SIP: UPL shares
Sedani has suggested investing in the UPL stock via the SIP route for a target of Rs 690.
Stock SIP: UPL shares
He has highlighted several positives in the stock as follows:
- It is the 4th largest agrochemical company in the world and has 11 per cent market share in seed manufacturing, expected by FY27
- For FY26, expected EBITDA margins are around 10-14 per cent, and revenue growth is expected at 426 per cent
- The company is launching new products in FY26, which is a major trigger. The management is confident of more than 15 per cent EBITDA growth
Stock SIP: Dhanuka Agritech shares
Sedani has also recommended the Dhanuka Agritech stock for a target of Rs 1,900, citing the company manufactures herbicides, insecticides, and other crop protection chemicals—over 300 products.
Dhanuka Agritech Q4 performance
Dhanuka Agritech Q4 Results: It showed 20 per cent revenue growth, 37 per cent EBITDA growth, and improved margins from 3 per cent to 24.8 per cent.
SIP in Stock: Dhanuka Agritech shares
According to the market expert, double-digit growth expected in FY26 and the company is planning to launch 8 new products, which is a major positive for this monsoon season.
Stock SIP: PI Industries shares
Sedani suggests doing SIP in the PI Industries stock for a target of Rs 4,200.
SIP in Stock: PI Industries shares
Here is the rationale by the analyst:
- Strong domestic and export business
- Their strength lies in biochemistry and specialty chemicals
- Q4 EBITDA grew 8 per cent, revenue has improved
- Products are diversified, not dependent on a single one
- New product launches and strong operating efficiency are key positives
- Planned capex of Rs 850 crore in FY26
Stock SIP: Sumitomo Chemical shares
Last but not least, he has recommended the Sumitomo Chemical stock with a target price of Rs 620.
SIP investment Idea: Sumitomo Chemical shares
Here are the key highlights of the company as outlined by the market expert:
- Over 25 patents granted recently
- Full-year revenue for FY25 is up by 11 per cent, with profit rising by 37 per cent
- Despite slightly weak Q4 results, the management's commentary remains optimistic
- New product launches are in the pipeline, with a 21 per cent profit growth expected from the CRAMS (Contract Research and Manufacturing Services)