8/21/2019 Thematic Report@Agro Fertilizers
1/26Analyst: Ajoy mukherjee | [email protected]
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Agriculture is the engine of the Indias economic growth and the largest employer. Indithe W orlds second largest producer of food next to china. In the next 10 years the total fproduction in India is likely to double. India holds 179.90 million hectares which is second largest in the world. Agriculture sector is representing a share of around 14 per cof Gross Domestic Product (GDP) & 11% of Indias total export which reached US Billion during 2013-14 as compared US 25 Billion in 2012-13. India requires a robmodernised agricultural practices to ensure food security. The government has allowed per cent FDI under automatic route in storage and warehousing, including cold storages. per cent FDI is also permitted for development of seeds under the automatic route. Indnew stable government may give highest priority on agriculture. Govt. may take somefollowing initiative for this.
To arrest the inflation which has been a major challenge for the new Government since it took chaFinance Minister announced several measures including advising the State Governments to de-list fruits vegetables from the Agriculture Produce Market Committees (APMC) Act.
Government may install a Price Stabilisation Fund so that procurement and distribution at State level could
improved.
Govt. may take steps to enhance the profitability in agriculture, by ensuring a minimum of 50% profits othe cost of production.
Increase public investment in agriculture & cheaper agriculture inputs and credit. Introducing latechnologies for farming and high yielding seeds.
Govt. estimated increase in cash flow in sugar sector, following the export incentive scheme for raw subeing extended till September 2015.
Cold storage capacity also needs to grow rapidly from the current level of 24 MT.
Set up and endorse low water consuming irrigation techniques and optimum utilization of water resources.
Set up the 'Organic Farming and Fertilizer Corporation of India', to promote organic farming and fertilizand provide incentives and support for marketing organic produce.
Genetically Modified (GM) crops may be allowed with full scientific evaluation on its long-term effectssoil, production and biological impact on consumers.
Govt. may plan urea price hike to control fertilizer subsidies.
Govt. may increase the import duty on sugar.
New stable govt. may reform a meaningful Minimum Support price (MSP).
Agriculture Productive, Scientific ProsperinSector- Agriculture, Agrochemicals Sugar
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Government may provide a guaranteed assured monthly income for farmers.
Marketing fruits and vegetables like milk. For a country which was able to build up an excellent markenetwork for one of the most perishable commodities -- milk govt. may take similar approach to providinviable marketing network for fruits and vegetables.
Govt. may implement a comprehensive and an intensive soil testing programme across India and thereafformulate location specific measures to restore and improve soil health.
New government may implement a farm insurance scheme to take care of crop loss due to unforeseen naturcalamities.
The Government may develop a policy and research framework that is appropriate for the developmentagriculture in hilly and mountainous regions in different parts of India.
New government may increase the subsidy on different fertilizer & sugar.
Above measures are likely to benefit the following segments in Agriculture.Irrigation com paniesFertilizer com paniesSugar companiesSeed companiesWe have identified some of the companies which we believe is likely to outperformin the medium to long term. A brief of the same is mentioned below. We have alsorecommend ed some of them in Ou r Post Poll Theme Report dated May17, 2014, someof which have already appreciated significantly.
8/21/2019 Thematic Report@Agro Fertilizers
4/26Microsec Re5 June, 2014
We rate Bayer Cropscience Ltd. a BU Y based on factors like companys outstanding range of pro& extensive service backup for modern in three business area Crop Protection, Bio-Science
Environmental Science. The company has plans to reach leadership position in these areas in
coming years with a substantial survival in 122 countries and 22000 dedicated employees.
Investment H ighlightsN ew S table Go vernm ent to b ring r efor m s in Ag ricu ltur e: New stable Government maimplement to introduce the latest technology for farming & may take step to enhance th
profitability in agriculture. Bayer Cropscience Ltd. has 17 branded products in crop protection. Th
company offers an integrated portfolio of high quality seeds of Rice, Cotton, Pearl Millet, Corn
Grain Sorghum, Mustard etc.
Its a cash-rich Company: Bayer Cropscience is zero debt company for last three years withuge cash in hand. In current high interest rate system this conservative capital structure i
advantage for the company, thus, helping in improving the bottom line.
Bayer CropScience has a strong innovation pipeline: A strong innovation pipeline is expecteto bring in new protection 6 to 8 and Hybrid Seeds 13 to 14 products within the next two year
The companys New integrated crop solutions Bayer Labhsutra significantly benefits farmer
income.
The companys manufacturing capacity is set to increase: The company has capacity tprocess and package more than 200 metric tons of high-quality seed per day, It is one of the to
players in the country with four states Andhra Pradesh, Tamilnadu, karnataka, haryana and plan
to develop production centers in others state. The company warehouses are located throughout th
country.
Bayer En vironmental Science : It is a non agriculture product division with pioneer in the fielof public health, being a major contributor in this segment. It is covering three major segmenVector control, Professional pest control, Green Industry. The comminment of this division is t
consistently delever high quality research product for the control of insect pests of public healt
like malaria vectors, cockroaches, rodents, termites, stored grain pests, house flies,
Bayer CropscienceLimitedSector Agrochemicals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
ter
ter
p%
DII
11.58%
FII
7.96%
Non
Institutions
11.50%
areholding
ode 506285
ode BAYERCROP
berg Ticker BYRCS IN
s Ticker BAYE.BO
Value (INR) 10.00
Share Capital (In INR Crs) 36.62
ge P/E NA
s Sensex 0.90
ge Daily Volume 15,380
nd Yield 0.3%
Ratio NA
STOCK SCAN
91.66
01.66
11.66
21.66
31.66
41.66
17
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-2013
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17
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b-2
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-2014
Period
CLOSE(Bayer CropScience Ltd) CLOSE(SENSEX)
t Market Price (INR) 1,840.00
Price 2,240.00
(%) 21.7%
ek High / Low (INR) 1939.00/1362.00
Capitalization (In INR Crs) 6,737.90
MARKET DATA
Bayer Cropscience Limited Financial Performance-Standalone (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 2,317.80 2,725.30 3,245.20 3,657.00 4,206.00
Growth (%) 7.22% 17.58% 19.08% 12.69% 15.01%
EBITDA 298.00 326.96 361.16 477.00 564.00
EBITDA Margins (%) 12.86% 12.00% 11.13% 13.04% 13.41%
Net Profit 139.00 1,161.70 289.50 325.00 392.00
Net Profit Margins (%) 6.00% 42.63% 8.92% 8.89% 9.32%
Net Profit Growth (%) 5.38% 735.76% -75.08% 12.26% 20.62%
EPS 35.19 294.10 75.14 88.75 107.05
BVPS 200.68 488.94 476.03 556.85 661.25
P/E 22.80 4.10 19.73 20.76 17.37
P/BV 4.00 2.46 3.11 3.30 2.78
RoE 18.97% 85.29% 16.61% 22.42% 17.36%
EV/EBITDA 9.33 8.92 8.16 13.18 11.14
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
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Businesses/Products
ValuationThe stock is currently trading at INR1840.00. On FY16E expected EPS of INR107.05
assigned a P/E multiple of 20.90x to arrive at a target price of INR2240.00 which show
upside potential of 21.70 percent hence making the scrip an attractive buy.
Key Concern Crop protection sales like pesticides, insecticides etc depend upon various factors lik
monsoon and cropping conditions.
Prices of Commodity also impact the usage of crop protection products. Several o
these factors are beyond the control of the Companys long term.
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We rate BASF Ltd. a BUY based on factors like companys strong experienced managemhigh quality & innovative product range. BASF in India today has 9 production sites, 8
offices and 2 R&D centers employing over 2,157 employees. BASF in India manufact
polymers, tanning agents, leather chemicals and auxiliaries, crop protection chemitextile chemicals, dispersions and specialty chemicals, performance plastics, automotive
coil coatings, construction chemicals, polystyrene and polyurethane systems.
Investment H ighlightsNew Stable Government to bring major reforms in Agriculture: New stable Governmenmay implement to introduce the latest technology for farming & may take step t
enhance the profitability in agriculture. BASF Ltd. has 11 solutions to solve its custome
specific needs in this segment of business. The company may participate in this growt
by increasing its manufacturing and working capital efficiency, adding capacity &
introducing new innovative product & formulations. Above 25% of total revenue come
from this segment of business.
1 chemical company It i s uniquely positioned with broad market access, portfolio otechnologies and expertise. Innovations based on chemistry ding play the key role mainly
in three areas, a) resources, environment & climate. B) Food & Nutrition. C) Quality o
life.
The companys diversified and huge product range: Companys businesss is related witseveral industries, it has about 5.000 customers around the world to rely on it
comprehensive portfolio of intermediates - more than 600 chemical products tha
company develops, produces and markets.
The companys superior growth oportunities: Presently, the company has nine plantssales offices and 2 R&D centers employing over 2,157 employees. It has a plan t
implement expansion project. It has quite a lot of new R&D products and formulation i
its pipeline. The company will keep its feet in few new countries in coming years.Parent company has strong partnership companies in India as well as Overseas: Thcompany has established the partnership companies all over the world named Gazprom
Statoil, Monsanto, Petronas, Shell, Sinopec Total.
BASF LimitedSector Specialty Chem icals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
oter
d
oter
up
3%
DII
5.65%
FII
0.86%
Non
Institutio
ns
20.16%
areholding
ode 500042
ode BASF
berg Ticker BASF IN
s Ticker BASF.BO
Value (INR) 10.00
Share Capital (In INR Crs) 43.29
e P/E 9.1x
s Sensex 0.90
e Daily Volume 32,616
nd Yield 0.5%
atio NA
STOCK SCAN
BASF India Limited Financial Performance-Standalone(In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 3515.94 3,940.63 4,429.89 5,260.00 5,475.00
Growth (%) 14.75% 12.08% 12.42% 18.74% 4.09%
EBITDA 209.95 251.95 284.19 377.00 451.00
EBITDA Margins (%) 5.97% 6.39% 6.42% 7.17% 8.24%
Net Profit 100.86 114.08 127.87 160.00 186.00
Net Profit Margins (%) 2.87% 2.89% 2.89% 3.04% 3.40%Net Profit Growth (%) 11.76% 13.11% 12.09% 25.13% 16.25%
EPS 23.30 26.35 29.54 36.96 42.97
BVPS 242.25 249.35 294.92 331.00 373.00
P/E 21.53 21.94 28.93 23.62 20.30
P/BV 2.07 2.32 2.89 2.64 2.34
RoE 10.00% 10.72% 10.23% 12.40% 13.50%
EV/EBITDA 10.85 11.17 11.74 10.34 8.64
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
t Market Price (INR) 874.00
Price 1,058.00
(%) 21.1%
ek High / Low (INR) 913.90/490.00
Capitalization (In INR Crs) 3,783.16
MARKET DATA
89.64
99.64
109.64
119.64
129.64
139.64
149.64
159.64
169.64
25-Jun-2013
25-Jul-2013
25-Aug-2013
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Period
CLOSE(BASF India Ltd) CLOSE(SENSEX)
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We rate Atul Ltd. a BU Y based on factors like companys strong management, healthy business mwhich is adequate diversified and vast product range. Atul Ltd. has divided its portfolio of product
41 groups. The product group are managed through 7 Businesses namely Aromatics, Bulk Chem
Colors, Crop protection, Floras, pharmaceuticals and Polymers.
Investment H ighlightsNew Stable Government to bring major reforms in Agriculture: New stable Governmenmay implement to introduce the latest technology for farming & may take step to enhance th
profitability in agriculture. Atul Ltd. has 14 products and 44 formulations in this segment o
business & above 35% of total revenue comes from this segment of business. The company ma
participate in this growth by increasing its manufacturing and working capital efficiency, addin
capacity & introducing new product & formulations.
Strong Management: Lalbhai group is one of the oldest business houses in India. The knowlineage of Lalbhai family goes back 18 generations. Mr. Sunil Lalbhai has been the chairman of th
board since 2007 and MD since 1984.
The company is diversified and vast product range : Companys businesss is related with 2industries, which are Adhesives, Agriculture, Animal Feed, Automobile, Chemica
Composites, Construction, Cosmetic, Defence, Dyestuff, Electrical and Electronics, Flavour an
Fragrance, Food, Glass, Home Care, Horticulture, Hospitality, Paint and Coatings, Paper, Person
Care, Pharmaceutical, Plastic, Polymer, Rubber, Soap and Detergent, Textile, Tyre.
The companys manufactur ing capac ity set to expand: Presently, the company has threplants. One plant in Ankleshwar (Gujarat), second in Valsad Dist (Gujarat), and third in Than
(Maharashtra). The company has a plans to implement expansion project. It has quite a lot of new
products and formulation in its pipeline. The company will keep its feet in few new countries i
coming years. Companys operating profit margin & net profit margin both are increasing year o
year.
Strong Subsidiary JV companies in India as well as Overseas: The company has establishethe subsidiary company in Brazil, China, UK & USA named Atul Brasil Quimicos Limitada, Atu
China Ltd., Atul Europe Ltd., Atul USA Inc. The company has several Indian subsidiary compan
as well by the help of these companies it serves about 4000 customer world-wide.
Atul LimitedSector Specialty Chem icals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
oterd
oter
up
2%
II
5%
FII
1.45% Non
Institutio
ns
41.69%
Shareholding
ode 500027
Code ATULLTD
berg Ticker ATLP IN
rs Ticker ATLP.BO
Value (INR) 10.00
Share Capital (In INR Crs) 29.66
ge P/E 9.1xs Sensex 0.92
ge Daily Volume 142,147
nd Yield 0.8%
Ratio NA
STOCK SCAN
Period
CLOSE(Atul Ltd) CLOSE(SENSEX)
t Market Price (INR) 895.00
Price 1,098.00
(%) 22.7%
ek High / Low (INR) 941.00/280.20
Capitalization (In INR Crs) 2,654.73
MARKET DATA
Atul Limited Financial Performance (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 1,792.40 2,042.88 2,457.75 2,775.00 3,177.00
Growth (%) 15.24% 13.97% 20.31% 12.91% 14.49%
EBITDA 187.99 249.14 363.73 415.00 484.50
EBITDA Margins (%) 10.49% 12.20% 14.80% 14.95% 15.25%
Net Profit 91.10 119.77 219.19 262.00 308.00
Net Profit Margins (%) 5.08% 5.86% 8.92% 9.44% 9.69%
Net Profit Growth (%) 0.94% 31.47% 83.01% 19.53% 17.56%
EPS 30.71 40.38 73.90 88.33 103.84
BVPS 181.99 216.66 319.83 406.70 510.50
P/E 6.23 7.50 12.18 10.19 8.69
P/BV 1.05 1.40 2.81 2.20 1.75
RoE 18.97% 21.66% 25.74% 24.32% 22.64%
EV/EBITDA 4.33 4.69 8.16 8.19 7.52
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
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Businesses/ProductsAromatics Through this division company aims to be a world care business,offering its customer s in personal care and other chosen industries high qualityproducts & services. There are 37 products in this portfolio.
Bulk Chemicals The Company has 26 products in this division and serving 205customers in 19 countries. It is the only & largest manufacturers of resorcinol in
India. It is one of the largest manufacturers of 1, 3 Cyclohexanedione, Anisol,
sulphur trioxide and Sulphur dioxide in India.
C olor The Company is the one of the largest manufacturers of Vat dyes in theworld & largest manufacturers of Sulphur Black dyes in India. It is one of the
leading manufacturers of speciality Acid, Direct Disperse, Reactive Dyes. It has a
portfolio of 695 world-class product serving 324 customers in 40 countries.
Crop Protection It has 76 world-class products in this portfolio & it is serving1469 customers in 29 countries. It is one of the largest manufactures of 2, 4-D Acid,
2,4-D Sodium, 2, 4-D Amine 2,4-D Ester, Indoxacarb in India.F loras It is the largest producer of tissue cultured date palms in India. TheCompany is serving 68 customers in two countries with a portfolio of 22 world-
class products.
Pharmaceuticals Pharmaceuticals business mainly comprises API intermediatesand a few APIs. There are 29 products. Products are used by customers belonging to
pharma industry, under five broad therapeutic categories, namely Cardiovascular,
anti-depressant, anti-diabetic, anti-infected, anti-retroviral.
Polymers: It is one of the largest manufacturers of Epoxy hardeners and resins inIndia. These products are used by Aerospace, Automobile, Construction, Defence,
Electronics, Wind Energy industries. The Business comprises about 457 products
and formulations. It is serving 1032 customers in 18 countries.
ValuationThe stock is currently trading at INR895. On FY16E expected EPS of INR103.85.
assigned a P/E multiple of 10.60x to arrive at a target price of INR1098 which show
upside potential of 22.70 percent, hence making the scrip an attractive buy.
Key Concern More than 50% of the companys revenue derived from export, therefore, i
profitability may get impacted by Rupee- Dollar fluctuations.
The Company is doing business with mainly chemicals, price of some of the
chemicals are cyclical remain low for long term.
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Businesses ProductsAromatics Through this division company aims to be a world care business,offering its customer s in personal care and other chosen industries high qualityproducts & services. There are 37 products in this portfolio.
Bulk Chemicals The Company has 26 products in this division and serving 205customers in 19 countries. It is the only & largest manufacturers of resorcinol in
India. It is one of the largest manufacturers of 1, 3 Cyclohexanedione, Anisol,
sulphur trioxide and Sulphur dioxide in India.
C olor The Company is the one of the largest manufacturers of Vat dyes in theworld & largest manufacturers of Sulphur Black dyes in India. It is one of the
leading manufacturers of speciality Acid, Direct Disperse, Reactive Dyes. It has a
portfolio of 695 world-class product serving 324 customers in 40 countries.
Crop Protection It has 76 world-class products in this portfolio & it is serving1469 customers in 29 countries. It is one of the largest manufactures of 2, 4-D Acid,
2,4-D Sodium, 2, 4-D Amine 2,4-D Ester, Indoxacarb in India.F loras It is the largest producer of tissue cultured date palms in India. TheCompany is serving 68 customers in two countries with a portfolio of 22 world-
class products.
Pharmaceuticals Pharmaceuticals business mainly comprises API intermediatesand a few APIs. There are 29 products. Products are used by customers belonging to
pharma industry, under five broad therapeutic categories, namely Cardiovascular,
anti-depressant, anti-diabetic, anti-infected, anti-retroviral.
Polymers: It is one of the largest manufacturers of Epoxy hardeners and resins inIndia. These products are used by Aerospace, Automobile, Construction, Defence,
Electronics, Wind Energy industries. The Business comprises about 457 products
and formulations. It is serving 1032 customers in 18 countries.
ValuationThe stock is currently trading at INR895. On FY16E expected EPS of INR103.85.
assigned a P/E multiple of 10.60x to arrive at a target price of INR1098 which show
upside potential of 22.70 percent, hence making the scrip an attractive buy.
Key Concern More than 50% of the companys revenue derived from export, therefore, i
profitability may get impacted by Rupee- Dollar fluctuations.
The Company is doing business with mainly chemicals, price of some of the
chemicals are cyclical remain low for long term.
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We rate UPL Ltd. a STRONG BUY based on factors like companys strong balance sheet, knowbased dynamic business model which is prominent for global as well as Indian market. UPL Ltd
50+ products in its portfolio, which are exported to more than 120 countries in the world. UPL
acquired 19 companies within last 20 years.
Investment H ighlightsNew Stable Government reforms in Agriculture: New stable Government plans to introducthe latest technology for farming & may take step to enhance the profitability in agriculture. Th
company holds 83 product patents in India and the world over. Along with this, company ha
variety in its seeds portfolio like Sorghum, Oil Seeds, Rice, Corn, Cotton, vegetables.
Company is specialized in dairy cattle feeding: By the help of 25 years research experiencCompany is present in cattle feeding worldwide with high Nutritional, high Digestible and hig
palatable fodder crops. It is having special forage crops hybrid seeds for every fodder segment.
Strong acquisition histroy : UPL Ltd. acquired 20 companies within last 20 years and has builstrong distribution channels. United Posphorus acquired MTM, based in UK in 1994, a companwith rich capabilities, deep presence in Europe and USA but a weak balance sheet. Within 1
months, MTM reported a surplus. The most recent acquisition of DVA Agro in Brazil made
possible for the company to enter the largest & fastest growing agrochemicals market in the world
The companys increasing global business: As per companys Annual Report UPLs markshare in indian agrochemicals is above 17%. In USA, UPLs market share is 5% in agrochemica
products. In Europe it is 3%. Companys exports accounts for 61% of total revenues, which h
been increasing in every year with the help of 88 global subsidiaries. UPL Ltd. is twelfth large
agrochemical company in the world.
Ample capacity of manufacturing : The company has 23 manufacturing units across the worldWithin that 5 in India (4 in Gujarat & 1 in J&K). The company is extensively invested in variourelated initiatives. The Company also extended to the profitable use of its gross block with a vie
to eliminate low yielding assets, engaging in judicious capex based on cost and payback tenure.
UPL LimitedSector Agrochemicals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
Promoter
and
Promoter
Group
29.81%
DII
80%
FII
46.77%
Non
Institutions
16.55%
GDR
0.09%
Shareholding
ode 512070
ode UPL
berg Ticker UPLL IN
s Ticker UNPO.BO
alue (INR) 2.00
Share Capital (In INR Crs) 85.72
e P/E 9.6xs Sensex 0.97
e Daily Volume 2,891,908
d Yield 1.33%
atio NA
STOCK SCAN
84.38104.38124.38144.38164.38184.38204.38224.38
17-Jun-2013
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Period
CLOSE(UPL Ltd) CLOSE(SENSEX)
t Market Price (INR) 323.00
Price 421.00
e (%) 30.3%
ek High / Low (INR) 328.90/121.00
t Capitalization (In INR Crs) 13,843.92
MARKET DATA
UPL Limited Financial Performance- (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 7,763.65 9,185.70 10,770.88 11,975.00 13,316.00
Growth (%) 31.63% 18.32% 17.26% 11.18% 11.20%
EBITDA 1,454.17 1,660.41 2,019.58 2,252.00 2,519.00
EBITDA Margins (%) 18.73% 18.08% 18.75% 18.81% 18.92%
Net Profit 600.69 774.60 949.79 1,167.00 1,348.00
Net Profit Margins (%) 7.74% 8.43% 8.82% 9.75% 10.12%
Net Profit Growth (%) 1.58% 28.95% 22.62% 22.87% 15.51%
EPS 12.03 17.12 21.59 27.23 31.45
BVPS 90.36 104.95 122.43 145.91 171.90
P/E 10.81 6.70 8.52 11.56 10.01
P/BV 1.44 1.12 1.50 2.07 1.76
RoE 15.21% 16.80% 18.10% 19.94% 19.53%
EV/EBITDA 5.98 4.50 4.81 6.64 5.93
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
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Businesses/Products
ValuationThe stock is currently trading at INR323.00. On FY16E expected EPS of INR31.45.
assigned a P/E multiple of 13.40x to arrive at a target price of INR421.00 which show
upside potential of 30.30 percent, hence making the scrip an attractive buy.
Key Concern More than 60% of the companys revenue derived from export, therefore i
profitability may get impacted by foreign currency fluctuation.
The Agrochemicals industry is a highly regulated world, requiring registration wit
respective governments. Changes in regulatory policy may impact company
business.
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We rate PI Industries Ltd. a S TR O NG B UY . The company is one of the leader of manufacturinmarketing of agrochemicals, plant nutrients, specialty fertilizers & hybrid seeds. We are positive a
the company based on trigger like companys strong marketing & distribution network in
covering more than 40,000 retail points and over 9,000 distributors/ direct dealers. PIs strong brand equity across millions of Indian farmers is backed by a robust pipeline of product.
Investment HighlightsNew Stable Government reforms in Agriculture: New stable Government may implement tintroduce the latest technology for farming & may take steps to enhance the profitability i
agriculture. P I Industries Ltd. has 32 branded products in this segment of business. Company
high growth potential of the existing and pipeline products of custom synthesis exports gives cle
visibility of companys performance. This will be complemented by robust delivery from the ne
operations, where capacities will get sufficiently increased in the coming years.
Strengthening sustainability through Knowledge: Companys business is going througinvestment knowledge, research & competence. The company leverages its knowledge wha
farmers needs to capitalize on opportunities faster and lead to strong product recall. Company
knowledge helps moderate operating cost.
Vast product portfolio strong pipeline : PI Industries leverages its strong research anmanufacturing capability by providing Custom Synthesis and CRAMS to MNC clients. Currently
the company has enough order book position which provides revenue visibility in short-term
long-term. Some of high selling patent product are BIOVITA GR, CRINA, CLUTCH
COLFOS, COLR, FLUTON etc.
Expansion Plans: Presently, the company has four plants. Two plant in Gujarat, one iRajashthan & one in J&K. The Company successfully commissioned a new manufacturing site i
Jambusar, Gujarat for manufacturing agrochemicals, fine chemicals, pharma intermediates an
other specialty chemicals.
Healthy financials : Companys bottomline has been improving by reducing the debt which w187 crores in 2013 now it is 86 crores. There are significant increament in Fixed Asset, Investmen
cash & cash equivalents. The Companys revenue grew by 27% CAGR in last five years and PA
grew by 45% CAGR the same time.
P I Industries LimitedSector Agrochemicals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
oter
d
oter
up
7%
DII
5.30%FII
19.81%
Non
Institutions
16.31%
Shareholding
Code 523642
Code PIIND
berg Ticker PI IN
rs Ticker PIIL.BO
Value (INR) 1.00
Share Capital (In INR Crs) 13.61
ge P/E 24.2xs Sensex 0.61
ge Daily Volume 151,986
nd Yield 0.30%
Ratio 0.69
STOCK SCAN
Period
CLOSE(PI Industries Ltd) CLOSE(SENSEX)
t Market Price (INR) 335.00
Price 459.00
e (%) 37.0%
ek High / Low (INR) 344.00/120.00
t Capitalization (In INR Crs) 4,559.65
MARKET DATA
P I Industries Limited Financial Performance- (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 962.02 1,159.63 1,595.54 1,959.30 2,396.40
Growth (%) 19.95% 20.54% 37.59% 22.80% 22.31%
EBITDA 150.05 189.15 304.76 343.60 434.50
EBITDA Margins (%) 15.60% 16.31% 19.10% 17.54% 18.13%
Net Profit 103.59 97.34 188.00 237.00 298.40
Net Profit Margins (%) 10.77% 8.39% 11.78% 12.10% 12.45%
Net Profit Growth (%) 59.12% -6.03% 93.14% 26.06% 25.91%
EPS 8.30 7.65 13.84 17.41 21.92
BVPS 25.75 39.05 51.02 65.22 83.87
P/E 12.87 17.98 20.08 18.86 14.84
P/BV 4.13 3.31 5.44 4.97 3.86
RoE 39.38% 22.86% 27.06% 29.39% 28.68%
EV/EBITDA 10.54 10.15 12.55 12.23 9.90
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
- 11 -
8/21/2019 Thematic Report@Agro Fertilizers
13/26Microsec Re5 June, 2014
Businesses/Products/Brands
ValuationThe stock is currently trading at INR335.00. On FY16E expected EPS of INR21.90.
assigned a P/E multiple of 20.90x to arrive at a target price of INR459 which show
upside potential of 37 percent, hence making the scrip an attractive buy.
Key Concern Any significant changes in normal climatic conditions may affect the performanc
of its business. The weather can also affect pest infestations and the demand an
product mix for crop protection products.
Significant variations in the cost as well as availability of raw materials and energ
may impact companys financial bottom line.
- 12 -
8/21/2019 Thematic Report@Agro Fertilizers
14/26Microsec Re5 June, 2014
We rate Monsanto India Ltd. a BU Y based on factors like companys research based biotechnostrong parent & healthy business model with selective products. MIL mainly divided into
divisions one agro chemicals & another is hybrid seeds. It ranks number 10 on Forbess list of
world most innovative company.
Investment H ighlightsNew Stable Government reforms in Agriculture: New stable Government may implement tintroduce the latest technology for farming & may take steps to enhance the profitability i
agriculture. Monsanto Ltd. helps farmer by both side Seeds & traits and its productivity. Th
company may participate in this growth by working capital efficiency, introducing new product &
formulations.
Zero Debt Company: MIL is zero debt company for last eight years. In current high interest ratsystem, its conservative capital structure is advantage for the company; and is also expected t
improve the bottom line. MIL is also a regular dividend paying company.
MIL - Sustainable yield intiat ive company : Companys businesss model is a commitment thelp farmers produce more and conserve more to improve farmers lives. It has project name
SHARE thats mean Sustainable Harvest Agriculture, Resources, Envirnment. The Main moto othe project is Increase yield, Increase awareness, Field level demonstrtion, Capacity building
Query reddresal service & inprove socio-iconomic level.
Strong parent Company: MIL is a subsidiary of Monsanto, a USA based company, with 40facialities, fortune 500 MNC having existence in 66 countries. Monsanto Company is researc
based corporation which spent Rs.7500.00 crores on R&D activities in FY 2012-13 roughly 9-12%
of sales and one of the leading players in Genetically Modified Seed market. MIL benefits from
parent companys global expertise in agrochemical and seeds segment as well new produ
development initiatives.
Selected key products: Companys key products are one Dekalb Maize Hybrid Seeds ansecond is Roundup - Glyphosate Herbicide for Weed Management. Farmers choosing maiz
hybrid seeds have contributed in increasing maize production by approximately 93 per cent in th
last 11 years (22.50 million tons in 2012-13 from 11.15 million tons in 2002-03). Roundup ipotential to save crop-yield loss by approxymately 30-35%. It saves farmer money & time. It can b
used easily with minimal impact on soil fertility.
Monsanto India LimitedSector Agro Chem icals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
ode 524084
ode MONSANTO
berg Ticker MCHM IN
s Ticker MNSN.BO
Value (INR) 10.00
Share Capital (In INR Crs) 17.26
e P/E 16.2xs Sensex 0.55
e Daily Volume 55,191
nd Yield 2.0%
atio NA
STOCK SCAN
oter
d
oter
up
4%
DII
2.48% FII
0.25%
NonInstitutio
ns
25.12%
areholding
t Market Price (INR) 2,222.00
Price 2,672.00
(%) 20.3%
ek High / Low (INR) 2297.70/560.00
Capitalization (In INR Crs) 3,835.78
MARKET DATA
95.01
145.01
195.01
245.01
295.01
345.01
25-Jun-2013
25-Jul-2013
25-Aug-2013
25-Sep-2013
25-Oct-2013
25-Nov-2013
25-Dec-2013
25-Jan-2014
25-Feb-2014
25-Mar-2014
25-Apr-2014
25-May-2014
Period
CLOSE(Monsanto India Ltd) CLOSE(SENSEX)
Monsanto India Limited Financial Performance -Standalone (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 389.06 442.42 581.84 717.00 843.90
Growth (%) 4.60% 13.72% 31.51% 23.23% 17.70%
EBITDA 70.16 69.65 145.12 185.90 234.00
EBITDA Margins (%) 18.03% 15.74% 24.94% 25.93% 27.73%
Net Profit 50.19 67.34 122.89 171.00 216.00
Net Profit Margins (%) 12.90% 15.22% 21.12% 23.85% 25.60%
Net Profit Growth (%) 17.18% 34.17% 82.49% 39.15% 26.32%
EPS 29.08 39.01 71.19 99.06 125.12
BVPS 222.71 236.05 199.57 299.70 425.90
P/E 23.19 14.67 12.18 22.43 17.75
P/BV 3.03 2.43 2.81 7.41 5.22
RoE 13.23% 17.01% 25.74% 33.90% 32.50%
EV/EBITDA 16.32 11.18 8.16 18.60 14.70
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
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8/21/2019 Thematic Report@Agro Fertilizers
15/26Microsec Re5 June, 2014
ValuationThe stock is currently trading at INR2222.00. On FY16E expected EPS of INR125.10
assigned a P/E multiple of 21.35x to arrive at a target price of INR2672.00which show
upside potential of 20.30 percent, hence making the scrip an attractive buy.
Key Concern MIL is leading player in hybrid seeds in India and booking to take lead
Genetically Modified (GM) seeds segment. Unfavorable Regulatory instruction on
seeds may hamper the companys future growth.
Sale of seeds and agrochemicals, both of the company products depends upon var
factors like Irrigation, Monsoon Pattern, Demand and Pricing of Agricult
commodities which are beyond control of the company.
- 14 -
8/21/2019 Thematic Report@Agro Fertilizers
16/26Microsec Re5 June, 2014
We rate Rallis India Ltd. a BU Y based on factors like companys parent management, huge custbased & compact agriculture business. Rallis India Ltd. has divided its 5 portfolio of product, S
pesticides, fertilizers, Seed treatment Chemicals & household product. The Company expor
around 50 countries in the world.
Investment H ighlightsHuge client base: The Company provides Technical & Bulk of various molecules to leading Indibased MNCs & Indian Companies named Bayer Crop Science, P I Industries, Nagarjuna Agrichem
Ltd., SDS Ramcides Crop Science Ltd. Hyderabad Chemicals Ltd., Excel Crop care Ltd. Cheminov
India Ltd. Dhanuka Agritech Ltd., Coromandel International Ltd. & many more.
Building sustaining relationship: Key strength of the company is building sustaininrelationship with farmer through initiatives such as Expansion andAggressiveGrowth througLeadership and Excellence (EAGLE), Rallis KisanKutumb (RKK). The Company has added number of value added services such as SMS alerts on crop prices, weather and possible diseas
outbreak through Samrudh Krishiprogramme.
Big positive support from its parent Tata groups companies: Rallis is not only institution itata group that is focussing on agriculture. Tata chemicals and the Tata Trusts also have active
involved in improving the agriculture business.
Acquisition of Metahelix Life Sciences: In Dec, 2010 the company has acquired Metahelix LifSciences, it has facilitated the company to increase the capability to develop high yeilding hybri
seed varieties. After acquisition the seed company has started yeiding results. In 3 years th
revenue of Metahelix has grown significantly and reached INR180 crores during 2013-14.
Accelarating Plant Growth: Otherthan crop protection, the Company has been proactivelworking towards improving the quality of farm inputs. It has introduced a range of Specialt
Nutrient products addressing the deficiencies of secondary and micronutrients in the soil witemphasis on sustainable agriculture and greener and cleaner products such as GEOGREEN, TATA
BAHAAR, UPHAAR-RDS, GLUCO BATA which are the top selling brands.
Ample manufacturing capacity strong pipeline : Presently, the company has eight factoriethree in Gujarat, three in Maharashtra, one in Andhra pradesh and one in Namil Nadu. Th
company continues to focus on building a strong pipeline of every business segment.
Rallis India LimitedSector Agrochemicals Y
Analyst: Ajoy Mukherjeemailto:[email protected]
oter
nd
oter
oup
09%
DII
6.35%
FII
13.75%
Non
Institutions
29.80%
Shareholding
ode 500355
Code RALLIS
berg Ticker RALI IN
rs Ticker RALI.BO
Value (INR) 1.00
Share Capital (In INR Crs) 19.45
ge P/E 22.1xs Sensex 0.81
ge Daily Volume 372,325
nd Yield 1.19%
Ratio 12.89
STOCK SCAN
91.92
101.92
111.92
121.92
131.92
141.92
151.92
Period
CLOSE(Rallis India Ltd) CLOSE(SENSEX)
Rallis India Limited Financial Performance- (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 1,284.95 1,458.18 1,746.56 2,009.60 2,320.6
Growth (%) 15.92% 13.48% 19.78% 15.06% 15.48
EBITDA 212.46 210.57 261.28 269.90 335.9
EBITDA Margins (%) 16.53% 14.44% 14.96% 13.43% 14.47
Net Profit 100.69 119.02 151.87 189.90 227.5
Net Profit Margins (%) 7.84% 8.16% 8.70% 9.45% 9.80
Net Profit Growth (%) -20.36% 18.20% 27.60% 25.04% 19.80
EPS 5.10 6.12 7.81 9.77 11.7
BVPS 28.47 31.92 36.67 43.67 51.6
P/E 23.81 18.85 22.13 23.02 19.2
P/BV 4.27 3.61 4.68 5.15 4.3
RoE 19.04% 20.24% 22.81% 23.94% 24.58
EV/EBITDA 11.79 10.46 12.70 12.61 10.6
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
t Market Price (INR) 225.00
Price 274.00
e (%) 21.8%
ek High / Low (INR) 232.35/124.90t Capitalization (In INR Crs) 4,375.55
MARKET DATA
- 15 -
8/21/2019 Thematic Report@Agro Fertilizers
17/26Microsec Re5 June, 2014
Businesses/Products
ValuationThe stock is currently trading at INR225.00. On FY16E expected EPS of INR11.70.
assigned a P/E multiple of 23.45x to arrive at a target price of INR274.00 which show
upside potential of 22 percent, hence making the scrip an attractive buy.
Key Concern Around 30% of the companys revenue is derived from exports; therefore, i
profitability may get impacted by exchange rate fluctuations between Dollar
Rupee.
The performance of the crop protection industry is dependent on monsoons, pe
and disease incidences on crops. Major fluctuations in total rainfall and i
distribution affect the crop acreages and overall productivity and have a direc
correlation with sales.
- 16 -
8/21/2019 Thematic Report@Agro Fertilizers
18/26Microsec Re5 June, 2014
We rate Coromandel International Ltd. a BUY. With the up-coming government policieAgriculture sector likely to be implemented/ to be considered, we believe the company t
benefitted. It is part of the INR243 Billion Murugappa Group. It is a second largest phosphate fert
company in India. The Companys business segments are Fertilizers, Specialty Nutrients, Protection and Retail.
Investment H ighlightsNew Stable Government reforms in Agriculture: New stable Government plans to introducthe latest technology for farming & may take step to enhance the profitability in agriculture. Th
Company has vast products in this segment of business and strong pipeline of product.
Strong performing subsidiaries and joint ventures companies: The Company has stronperforming subsidiaries and joint ventures for its various business initiatives. Some of those ar
Sabero Organics Gujarat Ltd. (India & overseas), Liberty Phosphate Ltd.(India & Overseas), Parr
Chemicals Ltd. (India & Overseas) and many more.
Sufficient manufacturing capacity: Presently, the Company has seven manufacturing locationin India. It has been expanding the capacities and the plants are capable of producing differen
grades of complex fertilisers including urea based grades. The Companys adequate infrastructur
and storage facilities commensurate to the production capacities which help in managing volatilit
in raw material prices and ensuring uninterrupted production
Support of Retail business : The Company has over 600 retail outlet in rural retail business in thstates of Andhra Pradesh and Karnataka through a chain set up in various parts of these State
Each retail center has an average area of 2500 square feet with a catchment area of 30-40 village
and about 5,000 farmer families.
Coromandel International LimitedSector Fertilizer Y
Analyst: Ajoy Mukherjeemailto:[email protected]
nt Market Price (INR) 259.00
Price 313.00
e (%) 20.8%
ek High / Low (INR) 280.00/162.40
t Capitalization (In INR Crs) 7,334.41
MARKET DATA
terd
ter
up
9%
DII
5.63%FII
6.80%
Non
Institutions
23.78%
Shareholding
ode 506395
ode COROMANDEL
berg Ticker CRIN IN
s Ticker CORF.BO
Value (INR) 1.00
Share Capital (In INR Crs) 28.32
e P/E 16.4x
s Sensex 0.87
e Daily Volume 141,543
nd Yield 1.74%
atio 0.52
STOCK SCAN
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
19
-Jun-2
013
19
-Jul-2013
19
-Aug-2
013
19
-Sep-2
013
19
-Oct-2013
19
-Nov-2
013
19
-Dec-2
013
19
-Jan-2
014
19
-Feb
-2014
19
-Mar-2014
19
-Apr-2014
19
-May-2
014
Period
CLOSE(Coromandel International Ltd) CLOSE(SENSEX)
Coromandel International Limited Financial Performance- (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 9,901.57 9,033.72 10,053.21 11,879.20 13,048.00
Growth (%) 28.25% -8.76% 11.29% 18.16% 9.84%
EBITDA 928.32 767.94 805.24 918.40 1,041.20
EBITDA Margins (%) 9.38% 8.50% 8.01% 7.73% 7.98%
Net Profit 638.79 431.99 356.54 558.40 684.80
Net Profit Margins (%) 6.45% 4.78% 3.55% 4.70% 5.25%
Net Profit Growth (%) -7.91% -32.37% -17.47% 56.62% 22.64%
EPS 22.60 15.25 12.46 19.72 24.18
BVPS 84.82 77.73 80.55 94.70 111.15
P/E 12.61 12.14 17.81 13.21 10.79
P/BV 3.36 2.38 2.75 2.73 2.33
RoE 29.13% 18.87% 15.63% 21.81% 22.67%
EV/EBITDA 8.84 9.13 9.30 8.27 7.10
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAR)
- 17 -
8/21/2019 Thematic Report@Agro Fertilizers
19/26Microsec Re5 June, 2014
Businesses/Products
ValuationThe stock is currently trading at INR259.00 On FY16E expected EPS of INR24.20.
assigned a P/E multiple of 12.95x to arrive at a target price of INR313.00 which show
upside potential of 21 percent, hence making the scrip an attractive buy.
Key Concern Volatility in the price of key raw materials & restriction on sale of some produc
may impact the companys financials.
Currency, Interest rate fluctuation may impact the profitability.
- 18 -
8/21/2019 Thematic Report@Agro Fertilizers
20/26Microsec Re5 June 2014
We rate Bajaj Hindusthan Ltd. a STRONG BUY based on triggers like up-coming government poon sugar sector, healthy growth in power export business. BHL is Indias largest sugar and Eth
manufacturing company. Bajaj Hindusthan Ltd. has identified its Business Segments as S
Distillery, and Power.
Investment H ighlightsNew Stable Government expected to come out with new favorable policies for sugasector: New stable Government may implement to an estimated increase in cash flow, followinthe export incentive scheme for raw sugar in coming years which may be very positive moves fo
the sugar companies as well as sugarcane farmers.
Power generation is going substantially high : Presently company generating powethroughout all 14 sugar mills recording a growth of 48% on YOY. While most of the powe
generated by BHL continued to be used captively, the surplus power was sold to the Uttar Pradesh
State grid. The Company exported of power 97% more during the year as compare to previous yea
New government may increase the cap of ethanol blending in petrol: New governmenmight increase cap of the quantum of ethanol blending in petrol. This move, if this happens, then
expected to be constructive for the company as well as the sugar industry.
Sufficient manufacturing capacity across all business segment: Company has 14 Sugar mil& 4 Distillery in Uttar Pradesh. It is Asias No 1 & Worlds No. 4 integrated sugar company. It h
an aggregated sugarcane capacity of 136,000 tonnes crushed per day and alcohol distillatio
capacity of 800 kilo liters per day.
Bajaj Hindusthan LimitedSector Sugar Y
Analyst: Ajoy Mukherjeemailto:[email protected]
ode 500032
ode BAJAJHIND
berg Ticker BJH IN
s Ticker BJHN.BO
alue (INR) 1.00
Share Capital (In INR Crs) 63.94
e P/E 33.3xs Sensex 1.38
e Daily Volume 3,497,878
d Yield NA
atio NA
STOCK SCAN
oterd
oter
up
3%
II
0%
FII
3.19%
Non
Institutio
ns
36.39%
Shareholding
73.59
93.59
113.59
133.59
153.59
173.59
193.59
Period
CLOSE(Bajaj Hindusthan Ltd) CLOSE(SENSEX)
t Market Price (INR) 30.65
Price 53.00
e (%) 72.9%
ek High / Low (INR) 32.60/11.70
t Capitalization (In INR Crs) 1,959.76
MARKET DATA
Bajaj Hindusthan Limited Financial Performance (In crores except per share data & )(Previous Year End September)Particulars FY2011A FY2012A FY2014A* FY2015E FY2016E
Net Sales 5,195.35 4,344.06 6,645.36 5,319.68 5,735.00
Growth (%) 51.88% -16.39% NA NA 7.81%
EBITDA 1,016.14 457.05 (100.07) 1,063.94 1,175.68
EBITDA Margins (%) 19.56% 10.52% -1.51% 20.00% 20.50%
Net Profit 21.45 (276.67) (1,710.68) 135.12 149.11
Net Profit Margins (%) 0.41% -6.37% -25.74% 2.54% 2.60%
Net Profit Growth (%) -47.91% -1389.84% NA NA 10.35%
EPS 0.94 (5.01) (23.98) 2.11 2.33
BVPS 125.94 62.17 37.04 38.60 40.93
P/E 41.05 NA NA 13.98 12.66
P/BV 0.31 0.51 0.44 0.76 0.72
RoE 0.75% -8.08% -72.22% 5.70% 6.29%
EV/EBITDA 8.76 15.86 NA 6.11 5.53
Source: Bloomberg, Ace Equity, Microsec Research * (18 Months) (EPS adjustes as per PAT)
- 19 -
8/21/2019 Thematic Report@Agro Fertilizers
21/26Microsec Re5 June 2014
Board of directors
Businesses/Products
ValuationThe stock is currently trading at INR30.65 on FY16E expected EPS of INR2.35. We assi
a P/E multiple of 22.55x to arrive at a target price of INR53.00 which shows an up
potential of 73.00 percent, hence making the scrip an attractive buy.
Key Concern Business depends on the availability of sugarcane and any shortage of sugarcan
may adversely affect operations. A variety of factors beyond the companys contrmay result in shortage of sugarcane in any period of time.
The wholesale price of sugar has a significant impact on companys bottom line
Like other agricultural commodities, sugar is subject to price fluctuations resultin
from weather, natural disasters, domestic and foreign trade policies, shifts i
supply and demand and other factors beyond control.
- 20 -
8/21/2019 Thematic Report@Agro Fertilizers
22/26Microsec Re5 June, 2014
We rate Balrampur Chini Mills Ltd. a STRONG BUY based on triggers like up-coming governpolicy on sugar sector, healthy growth in power generation and selling. Its allied business consi
manufacturing and marketing of Ethyl Alcohol, Ethanol & Organic manure. Company has 11 fact
located in Uttar Pradesh having an aggregate crushing capacity of 79,000 MT per day.
Investment H ighlightsNew Stable Government may outcome some of favorable new policy for sugar sectoNew stable Government may implement to an estimated increase in cash flow, following th
export incentive scheme for raw sugar in coming years. It will be very positive moves for the sug
companies as well as sugarcane farmers.
Low Debt Company compared to peers : Companys total debt is reducing year on yeaCompared with its competitors, it has lowest Debt/Equity ratio, which presently stands at 0.5
This is expected to post better bottom-line in coming years.
Technology driven company: The Company is using latest technology, machinery aninfrastructure. It has second largest sugarcane crushing capacity. It has dual-fuel power generatio
facility & has ability to refine sugar during off season.
H and y B us iness U nit for m anu factur ing & m ar keting in a ll i ts b us iness s eg m enCompany is fully integrated and has 11 Sugar mills & 3 Distillery in Uttar Pradesh. It does fu
utilization of fixed assets. It has good mix of diversified customer. Company does maintai
excellent relationship with farmers.
Balrampur Chini Mills LimitedSector Sugar Y
Analyst: Ajoy Mukherjeemailto:[email protected]
ode 500038
ode BALRAMCHIN
berg Ticker BRCM IN
s Ticker BACH.BO
Value (INR) 1.00
Share Capital (In INR Crs) 24.48
ge P/E 1.2xs Sensex 1.09
ge Daily Volume 879,217
nd Yield 2.4%
Ratio NA
STOCK SCAN
moternd
moter
oup
84%
%
FII
17.47%
Non
Institutions
27.21%
Shareholding
Balrampur Chini Mills Limited Financial Performance (In crores except per share data & )Particulars FY2012A FY2013A FY2014A FY2015E FY2016E
Net Sales 2,336.07 3,317.12 2,690.77 3,001.10 3,346.1
Growth (%) -22.30% 42.00% -18.88% 11.53% 11.50%
EBITDA 264.47 462.06 243.88 230.50 292.50
EBITDA Margins (%) 11.32% 13.93% 9.06% 7.68% 8.74%
Net Profit 0.41 161.27 8.46 79.77 92.02
Net Profit Margins (%) 0.02% 4.86% 0.31% 2.66% 2.75%
Net Profit Growth (%) -99.75% 39234.15% -94.75% 842.91% 15.35%
EPS 0.02 6.60 0.35 3.26 3.76
BVPS 49.56 53.82 49.68 54.78 56.79
P/E NA 6.62 159.30 31.00 36.12
P/BV 0.31 0.51 0.44 1.50 1.44
RoE 0.30% 12.77% 0.70% 4.98% 4.22%
EV/EBITDA 12.74 5.71 10.63 10.50 11.46
Source: Bloomberg, Ace Equity, Microsec Research (EPS adjusted as per PAT)
81.65101.65
121.65
141.65
161.65
181.65
201.65
19
-Jun
-2013
19
-Ju
l-2013
19
-Aug
-2013
19
-Sep
-2013
19
-Oc
t-2013
19
-Nov
-2013
19
-Dec
-2013
19
-Jan
-2014
19
-Fe
b-2
014
19
-Mar-
2014
19
-Apr-
2014
19
-May
-2014
Period
CLOSE(Balrampur Chini Mills Ltd)
CLOSE(SENSEX)
nt Market Price (INR) 82.00
Price 123.00
e (%) 50.0%
ek High / Low (INR) 88.00/34.60
t Capitalization (In INR Crs) 2,007.69
MARKET DATA
- 21 -
8/21/2019 Thematic Report@Agro Fertilizers
23/26Microsec Re5 June, 2014
Businesses/Products
Valuation
The stock is currently trading at INR82.00 On FY16E expected EPS of INR3.75.
assigned a P/E multiple of 32.65x to arrive at a target price of INR123 which show
upside potential of 50.00 percent hence making the scrip an attractive buy.
Key Concern Business depends on the availability of sugarcane and any shortage of sugarcan
may adversely affect operations. A variety of factors beyond the companys contr
may lead to a shortage of sugarcane in any period of time.
The wholesale price of sugar has a significant impact on companys bottom lin
Like other agricultural commodities, sugar is subject to price fluctuations resultin
from weather, natural disasters, domestic and foreign trade policies, shifts i
supply and demand and other factors beyond control.
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8/21/2019 Thematic Report@Agro Fertilizers
24/26
Microsec Research: Phone No.: 91 33 66512121 Email: [email protected]
Ajay Jaiswal: President, Investment Strategies, Head of Research: [email protected]
Fundamental Research
Name Sectors Designation Email ID
Nitin Prakash Daga IT, Telecom & Entertainment VP-Research [email protected]
Sutapa Roy Economy Research Analyst [email protected]
Sanjeev Jain BFSI Research Analyst [email protected]
Soumyadip Raha Oil & Gas Executive Research [email protected]
Anik Das Capital Goods, Power Research Analyst [email protected]
Neha Majithia Metal, Mineral, mining Research Analyst [email protected]
Ajoy Mukherjee Pharma & Agri Inputs Research Analyst [email protected]
Saroj Singh Auto , Cement Executive Research [email protected]
Khusboo Jaiswal Mid Cap Research Executive [email protected]
Technical & Derivative Research
Vinit Pagaria Derivatives & Technical Sr.VP [email protected]
Ranajit Saha Technical Research Sr. Manager [email protected]
Institutional Desk
Abhishek Sharma Institutional Desk Dealer [email protected]
PMS Division
Siddharth Sedani PMS Research VP [email protected]
Research-Support
Subhabrata Boral Research Support Asst. Manager Technology [email protected]
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Microsec Benchmark its Research
Microsec benchmark its Research and the same is updated on our website at www.microsec.in.
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Benchmarking Fundamental Research
Microsec Research Nifty CNX Midcap
stAs on 31 May 2014
An amount of `1,00,000 invested individually in all 276 stocks ie, `2,76,00,000 investment as and
when recommended has appreciated to `3,72,44,233 giving a return of 34.9 percent. On the same
basis Nifty has given a return of 12 percent and CNXMID CAP has given a return of 14.3 percent.
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