Net profit ramps up by 214% for FY14 and stood at Rs. 672.51 million as against Rs. 214.24 million for the period of previous year. Operating Profit also increased by 90% to Rs. 1084.81 million. Buy for a target of Rs810.

1. CMP 730.00
Target Price 810.00
ISIN: INE223G01017
JULY 14th
2014
EXCEL CROP CARE LTD
Result Update (PARENT BASIS): Q4 FY14
BUYBUYBUYBUY
Index Details
Stock Data
Sector Agrochemicals
BSE Code 532511
Face Value 5.00
52wk. High / Low (Rs.) 944.00/180.00
Volume (2wk. Avg. Q.) 25000
Market Cap (Rs. in mn.) 8034.38
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY14A FY15E FY16E
Net Sales 9656.01 10959.57 12329.52
EBITDA 1084.81 1200.15 1359.62
Net Profit 672.51 749.48 827.41
EPS 61.10 68.10 75.18
P/E 11.95 10.72 9.71
Shareholding Pattern (%)
1 Year Comparative Graph
EXCEL CROP CARE LTD BSE SENSEX
SYNOPSIS
Excel Crop Care Ltd is engaged in the business of
agrochemicals comprising insecticides, weedicides,
fungicides, acaricides, fumigants and rodenticides.
Also includes soil and plant nutrition products, bio-
pesticides and plant growth promoters.
In Q4 FY14, Net profit jumps to Rs. 106.53 million an
increase of 336.78% against Rs. 24.39 million in the
corresponding quarter of previous year.
The company’s net sales registered 20.54% increase
and stood at Rs. 2220.93 million in Q4 FY14 as against
Rs. 1842.44 million in Q4 FY13.
The company has reported an EPS of Rs. 9.68 for the
4th quarter as against an EPS of Rs. 2.22 in the
corresponding quarter of the previous year.
Profit before tax (PBT) at Rs. 116.83 million in Q4
FY14 compared to Rs. 42.16 million in Q4 FY13,
registered a growth of 177.11%.
The company has recommended a dividend of Rs.
12.50 per share on face value of Rs. 5.00/- each for the
year 2013-14.
Net profit ramps up by 214% for the FY14 and stood at
Rs. 672.51 million as against Rs. 214.24 million for the
period of previous year.
Operating Profit also increased by 90% to Rs. 1084.81
million in FY2013-14 from Rs. 570.42 million in same
period Last year.
Net Sales and PAT of the company are expected to
grow at a CAGR of 17% and 57% over 2013 to 2016E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
Excel Crop Care Ltd 730.00 8034.38 61.10 11.95 2.78 250.00
Atul Ltd 988.10 29273.20 71.74 13.76 3.11 75.00
Dhanuka Agritech Ltd 444.85 22208.70 18.62 23.85 6.24 200.00
PI Industries Ltd 333.20 45337.90 13.50 24.67 6.40 200.00

2. QUARTERLY HIGHLIGHTS (PARENT BASIS)
Results updates- Q4 FY14,
The company has achieved a turnover of Rs. 2220.93 million for the 4th quarter of the financial year 2013-14 as
against Rs. 1842.44 million in the corresponding quarter of the previous year. EBITDA of Rs. 99.07 million in Q4
FY14. Net profit jumps to Rs. 106.53 million in Q4 FY14 against Rs. 24.39 million in the corresponding quarter of
the previous year. The company has reported an EPS of Rs. 9.68 for the 4th quarter as against an EPS of Rs. 2.22 in
the corresponding quarter of the previous year.
Break up of Expenditure
During the quarter, total Expenditure rose by 21 per cent mainly on account of increased cost of materials
consumed by 76%, other expenditure by 59%, Employee benefits Expenses 39% are the primary attribute for
the growth of expenditure. Total expenditure in Q4 FY14 stood to Rs. 2171.60 million as against Rs. 1791.98
million in Q4 FY13.
Break up of Expenditure
(Rs. In millions)
Q4 FY14 Q4 FY13
Cost of Materials Consumed 1659.96 944.75
Depreciation 35.41 33.88
Employees Benefit Expenses 162.04 116.97
Other Expenditure 590.15 371.59
Purchase of Stock-in-Trade 27.35 214.06
Rs. In million MAR-14 MAR-13 % Change
Net Sales 2220.93 1842.44 20.54
PAT 106.53 24.39 336.78
EPS 9.68 2.22 336.78
EBITDA 99.07 108.37 (8.58)

3. COMPANY PROFILE
Excel Crop Care Limited was established in 2002, has risen out of the demerged portfolio of the agricultural
products segment of Excel Industries Limited. It has realized its pride of being the ‘supplier of choice’ by reaching
out to millions of farmers in more than 50 countries.
Excel Crop Care enables in providing proper solutions in soil health, seed treatment, crop protection, pest
management and also offers effective post-harvest treatment that has ensured smooth supply and trade in
agricultural commodities in many countries. The company extends solutions developed through backward
integration of technology.
Research and Development are approved by the Department of Technology of the Government of India and
acquired more than 15 patents. The company invests in developing new means and ways for guiding farmers to
nurture and protect crops, right from the sowing stage to the final storage in warehouses.
Brand Products
• Excel Acetecel
• Excel Mera71
• Excel Bipex
• Excel Merit
• Excel Plus
• Excel Lalkar
• Excel Pyromite
• Excel Sure shot
• Excel Pyromite
• Hexzol Gold
• Karilex
• Madhyam
• Metacel
• Metrex
• Mighty
• Mobilcel
• Excel Nutri S-90
• Phoscel
• Phosinetrocalcium
• Propinex
• Sarvada
• Seedcel
• Sugam
• Sulfex
• Super Glow
• Tercel
• Triblast
• Trizocel
• Acefex
• Azaoil
• Azacel-10000
• Celcorn
• Commando
• Celphos
• Crotocel
• Ct50
• DZire
• Emisan-6
• Enhancecel

4. Subsidiaries
• Excel Crop Care (Australia) Pty. Limited
• Excel Crop Care (Europe) N.V.
• ECCL Investments and Finance Limited
• Excel Genetics Limited
• Excel Crop Care (Africa) Limited
• Excel Brasil Agronegocious Ltd

5. FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March31, 2013 -2016E
FY13A FY14A FY15E FY16E
I. EQUITY AND LIABILITIES:
A. Shareholders’ Funds
a) Share Capital 55.03 55.03 55.03 55.03
b) Reserves and Surplus 2328.09 2839.65 3407.58 3918.72
Sub-Total-Net worth 2383.12 2894.68 3462.61 3973.75
B. Deferred Government Grants 2.48 1.74 1.98 2.30
C. Non-Current Liabilities:
a) Long-term borrowings 177.28 85.97 68.78 74.28
b) Deferred Tax Liabilities [Net] 102.75 120.30 138.35 152.18
c) Other Long Term Liabilities 0.00 3.13 5.70 9.80
d) Long Term Provisions 81.13 115.20 149.76 170.73
Sub-Total-Long term liabilities 361.16 324.60 362.58 406.98
D. Current Liabilities:
a) Short-term borrowings 482.84 233.06 139.84 111.87
b) Trade Payables 1345.56 2267.87 2812.16 3359.07
c) Other Current Liabilities 260.62 298.84 334.70 368.17
d) Short Term Provisions 236.94 256.40 271.78 284.01
Sub-Total-Current Liabilities 2325.96 3056.17 3558.48 4123.12
TOTAL-EQUITY AND LIABILITIES (A+B+C+D) 5072.72 6277.19 7385.65 8506.15
II. ASSETS:
E. Non-Current Assets:
Fixed Assets 1349.11 1422.86 1479.77 1524.17
Non Current Investments 52.51 52.51 52.51 52.51
Long Term Loans and Advances 53.45 101.38 139.48 184.11
Sub-Total-Non-Current Assets 1455.07 1576.75 1671.76 1760.79
F. Current Assets:
a) Inventories 1515.09 2425.08 3176.85 3931.91
b) Trade Receivables 1418.45 1485.76 1545.19 1597.73
c) Cash and Bank Balances 202.89 110.43 119.26 131.19
d) Short Term Loans and Advances 380.92 549.88 714.84 893.56
e) Other Current Assets 100.30 129.29 157.73 190.98
Sub-Total-Current Assets 3617.65 4700.44 5713.89 6745.36
TOTAL-ASSETS (E+F) 5072.72 6277.19 7385.65 4506.15

6. Annual Profit & Loss Statement for the period of 2013 to 2016E
Value(Rs.in.mn) FY13A FY14A FY15E FY16E
Description 12m 12m 12m 12m
Net Sales 7649.07 9656.01 10959.57 12329.52
Other Income 63.02 67.28 71.32 74.88
Total Income 7712.09 9723.29 11030.89 12404.40
Expenditure -7141.67 -8638.48 -9830.74 -11044.78
Operating Profit 570.42 1084.81 1200.15 1359.62
Interest -129.83 -47.13 -41.95 -44.88
Gross profit 440.59 1037.68 1158.21 1314.74
Depreciation -138.21 -137.07 -154.89 -173.48
Exceptional Items 0.00 64.75 0.00 0.00
Profit Before Tax 302.38 965.36 1003.32 1141.26
Tax -88.14 -292.85 -253.84 -313.85
Net Profit 214.24 672.51 749.48 827.41
Equity capital 55.03 55.03 55.03 55.03
Reserves 2328.09 2839.65 3407.58 3918.72
Face value 5.00 5.00 5.00 5.00
EPS 19.47 61.10 68.10 75.18
Quarterly Profit & Loss Statement for the period of 30 SEP, 2013 to 30 JUNE, 2014E
Value(Rs.in.mn) 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14E
Description 3m 3m 3m 3m
Net sales 2728.00 2104.56 2220.93 2753.95
Other income 18.24 12.05 14.33 15.48
Total Income 2746.24 2116.61 2235.26 2769.43
Expenditure -2317.61 -1881.75 -2136.19 -2473.05
Operating profit 428.63 234.86 99.07 296.38
Interest -8.53 -6.47 -12.75 -9.82
Gross profit 420.10 228.39 86.32 286.56
Depreciation -30.82 -40.77 -35.41 -31.87
Exceptional Items -29.17 17.00 65.92 0.00
Profit Before Tax 360.11 204.62 116.83 254.69
Tax -127.66 -67.35 -10.30 -52.72
Net Profit 232.45 137.27 106.53 201.97
Equity capital 55.03 55.03 55.03 55.03
Face value 5.00 5.00 5.00 5.00
EPS 21.12 12.47 9.68 18.35

7. Ratio Analysis
Particulars FY13A FY14A FY15E FY16E
EPS (Rs.) 19.47 61.10 68.10 75.18
EBITDA Margin (%) 7.46 11.23 10.95 11.03
PBT Margin (%) 3.95 10.00 9.15 9.26
PAT Margin (%) 2.80 6.96 6.84 6.71
P/E Ratio (x) 37.50 11.95 10.72 9.71
ROE (%) 8.99 23.23 21.64 20.82
ROCE (%) 23.29 38.02 36.91 36.85
Debt Equity Ratio 0.28 0.11 0.06 0.05
EV/EBITDA (x) 14.89 7.60 6.77 5.95
Book Value (Rs.) 216.53 263.01 314.61 361.05
P/BV 3.37 2.78 2.32 2.02
Charts

8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 730.00, the stock P/E ratio is at 10.72 x FY15E and 9.71 x FY16E
respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.68.10 and
Rs.75.18 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 57% over 2013 to 2016E
respectively.
On the basis of EV/EBITDA, the stock trades at 6.77 x for FY15E and 5.95 x for FY16E.
Price to Book Value of the stock is expected to be at 2.32 x and 2.02 x respectively for FY15E and FY16E.
We expect that the company surplus scenario is likely to continue for the next three years, will keep its
growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of
Rs.810.00 for Medium to Long term investment.

9. INDUSTRY OVERVIEW
Agro Chemicals sector is vital for the food and nutritional requirement of the nation. The sector remains the
principal source of livelihood for more than 55% of the population. Compared to other countries, India faces a
greater challenge, since with only 2.3% share in world's total land area; it has to ensure food security of its
population which is about 17.5% of world population. India has the largest area under agriculture in the world
for major crops such as paddy and wheat.
India has achieved five-fold increase in food grains production from mere 50.8 million tonnes in 1950-51 to an
all time record production of 257.4 million tonnes in 2011-12 (source: Agril. Stat. at a Glance-2012).
However, the food security and sustainability concerns have become much more severe today due to many
challenges like fast rising population, diminishing arable land, rising cost of inputs, limited technology
reach, increasing losses caused by insect pests and weeds and so on.
Agro-chemical business is divided in two parts - 'Technical' manufacturing and 'Formulation' manufacturing.
a) 'Technical' or 'Active Ingredients' manufacturers: These are essentially the manufacturers of raw
materials for making Agro-chemicals, very similar to API manufacturers in Pharmaceutical Industry. This is
quite asset intensive business and requires significant capital expenditure and serves mostly B2B segment.
b) 'Formulation' manufacturers: These are manufacturers of final product from technical grade pesticides
(the usable form of pesticides). This is quite an asset light model and serves mostly B2C segment. The share
of Herbicides (48%), Fungicides (22%) and Insecticides (24%) in the world is quite different from India,
where the use is dominated by Insecticides (64%) followed by Herbicides (20%), Fungicides (16%) due to
tropical nature and historically higher prevalence of insects. However, with increasing importance of
weeding through chemicals (owing to rising labor costs), Herbicides represent the fastest growing segment
in India.
Domestic Agro-chemical Industry is expected to have a bright future due to favorable macro factors namely:
a) increasing minimum support price (minimum price of agri-commodities set by Government of India),
b) lower current penetration of Agro-chemicals in India,
c) MNREGA led labour shortage leading to increased herbicide usage.
Agro-chemical Industry Initiatives
The Agro-chemical Industry is organizing National and International Conferences in Public-Private Partnership
and through their marketing networks training farmers and AgriInput Dealers about judicious and safe use of

10. Agrochemicals. The Government of India is also launching several programmes, including 100% seed treatment
campaign, increasing food grains production, special focus on enhancing production of fruits and vegetables. The
National Food Security Mission, National Horticulture Mission, Bringing Green Revolution in Eastern India and
such other programmes are likely to increase the demand for Agrochemicals. The Rashtriya Krishi Vikas Yojna is
having a provision for giving subsidy to farmers for appropriate plant protection measures.
The Government policy for Minimum Support Price (MSP) and Fair & Remunerative Price (FRP) as in sugarcane
is a good incentive for saving crop losses due to pests to have assured economic return. The MSP and FRP have
been increased year after year.
Disclaimer:
This document prepared by our research analysts does not constitute an offer or solicitation for the purchase or sale
of any financial instrument or as an official confirmation of any transaction. The information contained herein is
from publicly available data or other sources believed to be reliable but do not represent that it is accurate or
complete and it should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of it’s affiliates shall
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. This document is provide for assistance only and is not intended to be and must
not alone be taken as the basis for an investment decision.

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