Down 32% since the IPO a month ago, are AgroGalaxy’s shares an opportunity? See the company’s plans for the future

SAO PAULO — One of the main engines of the Brazilian economy, the agricultural sector still does not have as many representatives on the São Paulo Stock Exchange as other traditional segments. But that is changing: about a month ago, AgroGalaxy shares (AGXY3) debuted on B3 — although they have fallen 32.3% since then, the company has released strong numbers in the second quarter, and is optimistic about the future.

“Brazil is currently among the main producers and exporters of the main agricultural commodities. Just to give you an idea, for example, Brazil currently produces almost 40% of the world’s soy and coffee,” said Marco Teixeira, COO of AgroGalaxy, live on InfoMoney. “The agricultural inputs market in Brazil today is a US$25 billion market. The American market, the largest in the world, has been showing decreasing rates in recent years”, he added.

Live is part of the project Inside the Results, wherein InfoMoney interviews CEOs and directors of important publicly traded companies, in Brazil or abroad. They talk about the balance sheet for the second quarter of 2021 and perspectives. To follow all the interviews in the series, subscribe to the InfoMoney YouTube channel.

Read too:

AgroGalaxy currently has nearly 19,000 customers, with gross revenue of R$4.7 billion in the last 12 months, R$1.7 billion of which in grains and R$3 billion in inputs. “With these R$ 3 billion, we are the biggest in the market. But the size of the entire market is BRL 110 billion, it is very dispersed, even if compared to the BRL 80 billion of the addressable market through direct sales. is still a share small compared to the potential you may have and with more mature markets, where consolidation has already taken place”, said Mauricio Puliti, CFO of the company.

He also commented on the sector’s resilience at such a fragile time for the global economy. “It is not a sector that is unaffected by the impact of the pandemic, but it has been doing reasonably well. Last year, in the pandemic, I remember us going home in March and thinking: what are we going to do now? Our customer was used to our salespeople visiting his farm every week. And we saw that there was a quick adaptation. The producer started to relate more to us in a more remote way. Last year our result was also a record”, he stated.

The executive said from the point of view of supply chain there was also little impact on the agro sector, unlike what happened in other segments, such as automotive and technology. They also spoke about the recent partnership with Alper, the demand for storage services, crop insurance and credit for producers and how they are seeing the stock’s performance on the Stock Exchange a month after the IPO. Watch the full live above, or click here.

To understand how to trade the stock market through technical analysis, sign up for the free course A Hora da Ação, with André Moraes.