Friday 9 May 2014

Insecticides India long term bet

Company Profile -
Insecticides (India) Ltd. Is committed to fortify Agriculture with a highly productiveand progressive vision and mission to make Indian Farmers prosperous. Having made a modest foray into Indian Agriculture Space in 2002, today Insecticides (India) is one of the premier names in Crop Protection Industry. Today with more than 110 formulation products and 15 technical products, Insecticides (India) manufactures all types of insecticides, weedicides, fungicides and PGRs for all types of crops and household.

Our International Tie ups with Nissan Chemical Industries Limited, Japan for products like Pulsor and Hakama and technical collaboration with AMVAC, USA for Products like Thimet and Nuvan corroborate our efforts to make agriculture rewarding for Indian Farmers.
                                       
Today our Tractor Brand Range of products like Lethal, Victor, Thimet, Monocil,Pulsor and Hakama are the choicest brands of every farmer.Another feather in the cap is setting up of a R&D facility in India in Joint Venture with a Japanese company OatsukaAgri Techno Co. Ltd., which will aim to invent new agrochemical molecules for global markets in India.
                                       
With 4 state-of-the-art ultra-modern Formulation plants, 2 multi stream Technical Plants and 20 depots spread across the length and breadth of the country, make it possible to make the products reach to its end consumers.
                                       
Insecticides (India) takes pride in mentioning that one of the major strength is the channel partners which include about 4000 distributors and 50000 dealers, who have always formed the face of the company and played a vital role in smooth operations of the company.


Current valuation-
Company has poste full year EPS close to 29 Rs. and hence currently it's running at the price of 10x of it's EPS. It is very cheap at current valuation with compare to Rallis, Monsanto , Advanta. Further, FII holding has increased in the company in last three months. We are expecting company to post 8 rs. EPS in current quarter which will boost the share price and investor confidence in the company. Hence, we recommend insecticides at CMP of 275 for the target of 340 in long term.

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