Insecticides (India) Ltd., incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 1563.52 Crore) operating in Pesticides/Agro Chemicals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 257.74 Crore, down -14.15 % from last quarter Total Income of Rs 300.21 Crore and up 8.40 % from last year same quarter Total Income of Rs 237.75 Crore. Company reported net profit after tax of Rs 21.95 Crore in latest quarter.
Investment Rationale
The brokerage models Insecticides to report revenue and PAT CAGRs of 8.6% and 10.6%, respectively, over FY21-FY23E. Return ratios are also expected to improve over the same timeframe. It maintains ADD rating on the stock. At the DCF-based target price of Rs800, the implied P/E works out to 13x FY23E. Key risk: Weaker-than-expected performance of new product launches and higher competition.
Promoter/FII Holdings
Promoters held 68.9 per cent stake in the company as of March 31, 2021, while FIIs held 5.4 per cent, DIIs 9.2 and public and others 16.5 per cent.
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