Being a producer of crop protection products it is the largest company in India and is among the top five producers in the same space. Among the Indian companies it is the only company which has a global generics opportunity in crop protection products.
With a strong presence in regulated markets of US and Europe, more than 50 per cent of the revenue comes from these regions. In its latest quarterly result, growth in numbers at the operating levels were strong. Its Q4FY09 operating profits stood at Rs 292.9 crore, i.e. a 28 per cent growth y-o-y. The operating margin was also up at 21 per cent.
For the full financial year FY2009, its profit went up by 114 per cent y-o-y to take its profit to Rs 465 crore.
The bottomline of the company will see further improvements in coming times, figuring from the guidance issued by the company regarding 10 to 15 per cent growth in revenue and plans to increase spending to register more products in European markets.
At current levels the stock is trading at a PE of 46, this very much inline of its historic valuations, and cannot be termed very cheap. But its strong fundamentals make the stock a very attractive proposition even at these levels.
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This article was originally published on June 30, 2009.
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