Analysis of agrochemical sector - Quantitative and Qualitative analysis of agrochemical stocks. Presenting investing options and arriving at a desicion

1. Investment Decisions
Industry - Agrochemicals
Prepared by –
Shefali Satija

2. Industry Analysis-Qualitative
Agriculture contributed 17% to our GDP in 2019-2020 .
Livelihood of 50% of county’s population.
Agrochemical market is worth Rs.38000 crore divided
equally between domestic consumption & exports.
Agrochemical Industry will continue to expand with
expected growth in agricultural output.
Government policies - subsidies to farmers, efforts to
ensure a timely harvest and procurement of Rabi Crop
improved liquidity for farmers.
Good on track monsoon ensures strong domestic
demand.
Movement of migrant workers shifts focus on agriculture.

3. Industry Analysis-Qualitative
 Government support to agriculture value chain will
tackle the challenges on the supply side.
In export market, demand robust given the need for
global food security.
Orders coming from key markets like Brazil, Japan, U.S as
buyers trying to shift their sourcing away from China.
Impact of pandemic limited on agrochemical compared
to other industries.
Few key players in the industry and less competition.
Major players-Bayer crop science Ltd., United
Phosphorus Ltd., Rallis India Ltd., Syngenta India Ltd
among others.

4. Quantitative Analysis
Company Market
Cap
(in cr)
Market
Price
(in Rs.)
52 weeks
High/Low
(in Rs.)
Book
Value
(in Rs.)
P/E Dividen
d Yield
(in %)
ROCE
(in
%)
ROE
(in
%)
Bayor Cop
Science
Ltd.
24958 5900 6449/2981 572.40 44.87 1.62 29.30 23.77
PI
Industries
Ltd.
26710 1983 2154/972 172.63 63.55 .17 24.66 19.14
Rallis
India Ltd.
5653 296 325/127 72.48 27.04 .86 16.31 12.92
Dhanuka
Agritech
Ltd.
3766 794 935/261 148.74 21.16 1.52 23.35 17.35
Paushak
Ltd
1090 4050 4315/1302 737.29 33.89 .17 20.70 15.89

5. Quantitative Analysis
Company Sales
Growth
(in %)
3 years
Promoter
Holding/
Pledged %
Debt to
Equity
Price
to BV
ROA EPS Return
over 3
years
(%)
Return
over 10
years
(%)
Bayor
Crop
Science
8.80 71.43/0.00 0.00 9.70 22.56 131.5 5.98 19.42
PI
Industrie
s Ltd.
10.66 46.79/0.00 0.00 10.20 18.18 31.20 32.47 40.65
Rallis
India Ltd.
10.62 50.09/0.00 .06
(79.7cr)
4.01 11.97 10.93 5.90 8.38
Dhanuka
Agritech
6.67 75/17 .001
(7.98cr)
5.33 16.45 37.52 1.36 23.97
Paushak
Ltd
24 66.71/0.00 0.00 4.80 15.83 113.3 69.34 44.88

6. Bayor Crop Science Ltd.
Global Presence & Very Strong brand across the globe.
Market Leader in its space & a Blue Chip Company
Strong promotor holding (more than 70%)
 Debt Free Company
Stocks are stable, can expect consistent returns.
Strong Sales & Profit Growth
Healthy Dividend Payout
Great Return to its shareholders in last 10 years.
High ROCE & ROE & ROA.
High P/E & P/BV ratio due to low float, short term
investor can exit easily by selling shares at a profit.

7. Thank You