This document provides an overview of an internship project conducted at Elara Capital on the fertilizer and seed sectors in India. The project involved equity research on companies in these sectors including valuation, financial modeling and analysis. Key activities included assigning companies for research, collecting qualitative and quantitative data, developing revenue and cost sheets, and drawing conclusions about company performance and industry trends. Learnings included creating financial models, extracting relevant data from financial statements, and conducting qualitative research to identify growth drivers in the fertilizer sector.

1. PUNE INSTITUTE OF BUSINESS MANAGEMENT
Institutional Equity Research On Fertilizer
And Seed Sector
SUMMER INTERNSHIP PROJECT
WITH

2. Roadmap
Sector
Findings
About the
Company
Project
Detail
Findings
Learnings

3. Capital
Markets
Asset
Management
Broking
Wealth
Management
Investment
Banking
Insurance
Life
Non-Life
NBFC’S
Loan
Company
Asset Finance
Company
Investment
Company
Sector Findings: Financial services

4. Growing
demand
Innovation
Growing
Penetration
Policy
SupportAdvantage in
India

5. Company: Elara Capital
Commenced
Operations -
2002
First deal in
2003
Started in
Mumbai -2007
Successfully
completed over
60 fund raising
assignments
Leading investment
banks for Indian
companies

6. Investment
Banking
Equity
Research and
Analysis
Sales and
Trading
(Broking
Services)
Asset
Management
Products and Services:

7. Project Details
Equity research of Fertilizer and seed sector
Valuation of Indian Companies
Channel Check
Attended Bloomberg Seminar
Part of Concall with CRISIL and Himadri
cropchem

8. STEP 1
• Allotment of companies belonging to fertilizer and seed sectors
STEP 2
• Detailed research on the companies assigned
STEP 3
• Data mining from balance sheet, p/l and cash flow statements
STEP 4
• Data feeding in the financial model
STEP 5
• Formulated Revenue and cost sheet
STEP 6
• Live qualitative data collection from farmers to know about the fertilizer
sector
STEP 7
• Draw conclusion about the company's position and profitability
Methodology

9. Findings about the sector
Demand forecast methodology
MSPs of crops
Gross cropped area
Rainfall
Population

10. 292
328
382
360
217
133
96
118
108
66
275
201
207
223 178
700
624
707
691
461
0
100
200
300
400
500
600
700
800
FY13
FY14
FY15
FY16E
FY17P
FY13
FY14
FY15
FY16E
FY17P
FY13
FY14
FY15
FY16E
FY17P
FY13
FY14
FY15
FY16E
FY17P
Rs. Billion
Indigenous Urea Imported Urea Non-Urea Fertilizers Total Subsidy
SUBSIDY
Trend in Fertilizer Subsidies
Source: CRISIL Research
746
787
615
547
391
280
336 316
255
0
100
200
300
400
500
600
700
800
900
2014-15 2015-16 2016-17E
$pertonne
Declining Raw material prices
Phosphoric Acid Ammonia Pottasium Chloride

11. Player Profiles
Source: Company Financials
Chambal Fertilizers
and chemicals Ltd.
(CFCL)
Gujrat State fertilizers and
chemicals limited (GSFC)

12. Player Profiles
Source: Company Financials
Particulars
•Top Line
•Bottom Line
•Market Cap
•P/E
•Dividend yield
CFCL
•105473.2
•2,632.2
•5535
•12.2
•1.4
GSFC
•63788
•3,795.0
•5030
•13.1
•1.2
•1.6

13. Learnings
• Created financial model of fertilizer sector
companies
• Extracted relevant data from financial
statements, quarterly presentations,
Concall transcripts
• Conducted qualitative research on fertilizer and seed sector
• Modulated revenue and cost model of different companies
• Worked on two sectors – hospitality and fertilizer
• Explored the difference between EV/EBITDA band and PE value multiple used for valuation
• Conversed dealers of different regions for channel check
• Identified growth drivers of fertilizer sector