Initiating Coverage

Insecticides
(India) Ltd

Operating leverage at play, compelling valuation

Insecticides (India) Ltd (IIL) is one of the fastest growing agrochemical

companies in the country. It has established a strong position for itself in
the industry on the back of (i) strategic brand acquisitions (ii) new
innovativeproductlaunches(iii)closepartnershipwithleadingglobalagro
chemical players (iv) aggressive branding and marketing strategies (v)
strongpanIndiadistributionnetwork(vi)welldiversifiedproductportfolio
and(vii)experiencedmanagementwithprovencapabilities.Consequently,
share of IIL in the domestic agrochemical market has risen from 1.9% in
FY09 to 5.5% in FY15. During FY0914, the company witnessed 26.8%
revenue CAGR albeit on a lower base. We expect the revenue growth
momentum to continue along with more than commensurate earnings
growth as operating leverage comes through. We forecast ~20%/43%
revenue/EPSCAGRoverFY1517E.InitiatewithBUYand12monthtargetof
Rs1080basedon12xFY17EEPS.Hostileweatherconditionsremainkeyrisk.
Strategic acquisition of brands

Rating:
Target:
CMP:
Upside:

Sector:

Positive

Sensex:

28,516

52Weekh/l(Rs):

931/209

Marketcap(Rscr):

1058.3

6mAvgvol(000Nos):

68.6

Bloombergcode:

INSTIN

BSEcode:

532851

NSEcode:

INSECTICID

FV(Re):

10

PriceasonApril07,2015

LowHigh
1

EarningsGrowth

CashFlow

B/SStrength

Valuationappeal

Risk

Sharepricetrend

200
100
0
Feb14 Jun14 Sep14Dec14 Apr15

Shareholdingpattern

Financialsummary

FY15E
9,832
13.8
1,147
11.7
555
38.9
43.7
19.1
3.5
11.3
0.9
20.3
19.2

FY16E
11,643
18.4
1,449
12.4
817
47.2
64.4
12.9
2.8
8.8
0.7
24.3
21.7

FY17E
14,263
22.5
1,854
13.0
1,138
39.3
89.7
9.3
2.2
6.7
0.5
26.8
25.0

Source:Company,IndiaInfolineResearch
ThisreportispublishedbyIIFLIndiaPrivateClientsresearchdesk.IIFLhasotherbusinessunitswithindependentresearchteamsseparated
by'Chinesewalls'cateringtodifferentsetsofcustomershavingvaryingobjectives,riskprofiles,investmenthorizon,etc.Theviewsand
opinionsexpressedinthisdocumentmayattimesbecontraryintermsofrating,targetprices,estimatesandviewsonsectorsandmarkets.

Sensex

400

We forecast IILs earnings CAGR at 42% over FY1517E along with ~133bps
margin expansion supported by increased contribution from specialty
products,differentiatedproductofferings,andoperatingleveragefromramp
up at Dahej facility. The stock looks attractive at current valuations of 9.3x
FY17Ewhichisatasteepdiscounttothepeers(avgindustryP/E16x).

Insecticides

500
300

Agrochemicals

Sector view:

Robust earnings growth available at attractive valuation

FY14
8,641
40.1
818
9.5
399
13.1
31.5
26.5
4.3
15.8
1.0
17.4
16.2

Rs1,080
Rs834
29.1%

Companyratinggrid

IIL today is one of the fastest growing branded agrochemical player in the
country due to its smart strategy to acquire high recall but off the shelf
brands.IILcarefullypickedbrandshavinghighrecallinthemindsoffarmers
but which have been offtheshelve since few years. With aggressive
marketing,IILsuccessfullyrelaunchedthesebrandsinashortspanoftime.IIL
acquired21brandsfromMontariInd.(Ranbaxygroupco.)includingpopular
brandslikeLethal,VictorandMilchor.InFY12,IILalsoacquiredMonocilfrom
NocilLtd.Today,Lethal,VictorandMonocilareamongstthetop5brandsof
IIL and the trio contributes ~13% to net sales and continue to grow at a
robustrate.

Y/e31Mar(Rsm)
Revenues
yoygrowth(%)
Operatingprofit
OPM(%)
ReportedPAT
yoygrowth(%)
EPS(Rs)
P/E(x)
Price/Book(x)
EV/EBITDA(x)
Debt/Equity(x)
ROE(%)
ROCE(%)

BUY

Promoters
Insti
Others

Jun14
74.7

Sep14
74.7

Dec14
74.7

8.5

10.4

10.6

16.8

15.0

14.7

Research Analyst:

PratikTholiya
research@indiainfoline.com

April08,2015

CompanyReport

Insecticides (India)

MNC tie-ups bolster product basket; JV to strengthen R&D

Inthelastfewyears,IILhascollaboratedwithsomeofthetopMNCplayers
to expand its product portfolio. Its first tieup was with leading American
agrochemicalplayerAMVACin2006foritspopularbrandThimet.Thimetisa
generic insecticide which finds application in many crops such as paddy,
sugarcane,andgroundnut.IILreceivedthetechnicalandmarketingrightsfor
this product for 5 years which expired in 2011 and has been renewed for
another5years.ThimetisoneofthelargestsellingbrandsofIIL.In2012,IIL
wassuccessfulinsecuringanotherblockbusterproductfromAMVACNuvan.
Nuvan is an innovative insecticide having dichlorvos as its active ingredient
andiseffectiveforuseincropssuchaspaddy,wheat,cottonandsugarcane.

In the same year, IIL launched two more innovative products, Pulsor and
Hakama, by entering into a marketing collaboration with Nissan Chemicals,
Japan.Pulsorisathifluzamidebasedfungicidethatisusedforfightingsheath
blightinrice.HakamaisaselectiveherbicidebasedonNissansverypopular
quizalofopethyl molecule and is used for combating small leaf weeds in
broad leaf crops and vegetables like soybean, cotton, groundnut etc.
Together, these four products contribute ~1718% of the total revenues.
Threeoutofthefourproductshaveonlyseentwofullsowingseasonssofar
and as the brand attains maturity in the market the sales will increase
incrementally. Going ahead, IIL expects to launch one more innovative
productfromNissaninFY16andisworkingontwouniquemolecules,which
willbelaunchedin1824months.

OntheR&Dfront,IILhasenteredintoaJVwithJapanesefirmOATAgrioCo
Ltd.,forresearchanddevelopmentofnewmoleculestocontrolpest,weeds
andotherdiseasescurrentlyplaguingcropsandforwhichnosubstantialcure
isavailableinthemarket.A25,000sqftstateoftheartR&Dcenterhasbeen
setup at Chopanki, Rajasthan under the JV Company OAT & IIL India
LaboratoriesPvtLtd,foracapexofRs400mn.Thisfacilitygotoperationalized
in Q2 FY15 and currently employs 45 people including chemists and
biologists. OAT holds 70% in the JV Company while IIL holds the remaining
30%.WhileOATwillprovidetechnologicalknowhowneededforcarryingout
research and inventing new molecules, IILs expertise lies in knowledge of
Indian climatic and soil conditions, cropping patterns and strong panIndia
presence. The joint venture company aims to work on more than 7000
compoundseachyearandwillapplyforatleast10basicpatentsinthenext
threeyears.Itishopefuloflaunchingtwothreenovelmoleculesgloballyin2
3years.BoththeJVpartnerswillhavetherightstomanufactureandsellthe
moleculesthusdiscoveredincountrieswheretheyhavepresence.

TieupwithleadingMNCplayerslike
AMVACandNissanChemicalshasgiven
accesstopopularbrandslikeThimet,
Nuvan,HakamaandPulsor

WeexpectIILtolaunchatleast23
innovativeproductsthroughtechnical
tieups

JVwithOATAgriowillstrengthenR&D
capabilitiesandwillhelpindeveloping
newinnovativemolecules

Insecticides (India)

Wide-ranging product portfolio supports strong revenue growth

One of thereasons behind IILs above industryaveragerevenue growth has

been its wideranging product portfolio wherein the company has been
addingatleast34newproductseveryyear.AsofFY15,IILboastsofowning
more than 120 branded products in its portfolio catering to the complete
spectrumofagrochemicalscomprisingplantprotectionproducts(herbicides,
insecticides, fungicides) as well as specialty plant nutrient products and
solutions. Contribution from insecticide remains high at ~65% of total
revenues but has been reducing post the launch of novel products in other
segments such as Hakama, Racer, Hijack (Herbicide) and Pulsor (Fungicide).
Revenue contribution from these products, which were launched between
FY1013 have already shown good growth and are contributing 15% each.
Goingforward,astheseproductsgaintraction,theircontributionwillfurther
increase.

Last year, the company entered into bioproduct segment by launching

Mycoraja, a mycorrhizabased nutrient activating biofertilizer. It has been
wellacceptedbythefarmersinRajasthanwhereitwasinitiallylaunchedand
is being used for variety of crops such as cotton, rice, wheat, oilseeds and
vegetables.Twomoreindigenouslydevelopedinsecticides,XplodeandLogo
werelaunchedinFY14.Thecompanyisfocusedonlaunchingmoreinnovative
products in these segments especially in herbicide category where the
demandisverystrong.

AsofFY14,thetopfiveproductscontributed~27%whilethetoptenproducts
contributed~38%tothetopline.Asperthemanagement,alltheseproducts
aregrowingindoubledigitsasdemandremainsrobust.

RevenueShareofTopTenProducts
Product
Name

Technical

Thimet

Launch Category

NewlauncheslikeHakama,Racer,Pulsor
etcaregainingtractionandareexpected
toincreasetheircontributionfrom15%
eachtohighersingledigitinnext23
years.

Revenue
Type
Share
Generic Tieup
8.3% withAMVAC

Phorate10%CG
Monocrotophos36%
Monocil SL
Dichlorvos76%EC
Nuvan
(DDVP)

FY07

Insecticide

FY12

Insecticide

FY13

Insecticide

6.0% GenericInhouse
Specialty Tieup
5.9% withAMVAC

Hijack

Glyphosate41%SL

FY10

Herbicide

4.0% GenericInhouse

Lethal

Chlorpyriphos50%EC FY06

Insecticide

2.7% GenericInhouse

Victor

Imidacloprid17.8%SL
Quizalofopethyl5%
Hakama E.C.
ParaquateDichloride
Milquat 24%SL

FY06

Insecticide

FY13

Herbicide

3.4% GenericInhouse
Specialty Tieup
2.6% withNissan

FY07

Herbicide

1.9% GenericInhouse

Racer

Pretilachlor50%EC

FY05

Herbicide

Pulsor

Thifluzamide24%SC

FY13

Fungicide

1.6% GenericInhouse
Specialty Tieup
1.6% withNissan

Source:Company,IndiaInfolineResearch

Insecticides (India)

Backward integration into technicals

Fromapureformulatorofagrochemicals,IILrevampeditsbusinessmodelby
venturingintotechnicalmanufacturing.Technicalsaretheactiveingredients
which are added with other ingredients to formulate the pesticide into the
finalproductforsale.Thisenablescontroloversupplychain.IILmanufactures
offpatented technicals of which ~5660% is consumed inhouse for
manufacturingformulationswhiletheremainingissoldintheopenmarket.
Its pays to run an integrated model since integrated operations assure
availability of technicals and lead to lower margin volatility and higher
operating margins. IIL started manufacturing technicals in FY08 from its
Chopanki unit. In FY13, a new unit was setup at Dahej taking the total
capacity to 11,800MT. After facing initial teething problems at Dahej,
operationshavestabilized.Thecompanyisexpectedtoscaleupproductions
as its sees increased captive demand as well as demand from exports.
Currently,thecompanyhasmorethan40technicalgradechemicalssomeof
the popular ones are glyphosate, imidacloprid, acetamiprid, dichlorovos,
lambdacyhalothrin, methsulfuron methyl, sulfosulfuron, bifenthrin,
chlorpyriphos,fipronilandthiamethoxam.

IILconsumes~5658%ofthetechnicalit
manufactures,thusensuringavailability
oftechnicalandleadtolowermargin
volatilityandhigheroperatingmargins

ManufacturingandR&DFacilities
Formulation
Location
Chopanki(Rajasthan)
Samba(J&K)
Dahej(Gujarat)
Udhampur(J&K)
Technicals
Location
Chopanki(Rajasthan)
Dahej(Gujarat)
R&D
Location
Chopanki(Rajasthan)
Chopanki(JVwithOAT)

OperationalFrom

KeyProducts

FY03
FY04
FY12
FY12

Lethal
Nuvan,Victor,Hijack
Monocil
Hakama

OperationalFrom

KeyProducts

FY08
FY13

Glyphosate
Thiamoxam

OperationalFrom

KeyProducts

FY06
FY15

BackwardIntegratedProcessResearch
BackwardIntegratedProcessResearch

Source:Company,IndiaInfolineResearch

Insecticides (India)

Distribution and Marketing initiatives assist market share gains

IILsstrongruralbrandequityamongmillionsofIndianfarmershasbeenthe
result of its aggressive marketing initiatives and its panIndia distribution
networkthatcoversmorethan60,000retailpointsthatareservicedby4,800
distributorsand25depotspresentacrossallmajoragriculturalstatesinthe
country. Wider retail presence has also helped the company in attracting
MNCagrochemicalgiantswhohavenopresenceorlesspresenceinIndia.IIL
hasbeenleveragingonitsdistributionmighttosecuredistributionrightsfor
manynovelproductsfromtheseMNCs.Asthedistributionnetworkcontinues
toincrease,weareconfidentthecompanywillbeabletoropeinmanymore
suchexclusivemarketinganddistributiontieups.

IILhasbeenveryaggressiveinusingconventionalaswellasnonconventional
advertisingandmarketingstrategiestobuildabrandwhichisfastbecominga
household name within the farmer community. It has appointed Bollywood
stars such as Suniel Shetty and Aman Verma as its brand ambassador. The
company has also employed a team of technocommercial people who
directly interact with the farmers and educate them on various issues of
farming. This has helped in building trust and faith in the company and its
productsandactedasanindirectwayofmarketing.

PanIndiadistributionnetworkhas
enabledIILtoenterintomarketingtie
upswithleadingglobalagroplayersfor
theirnovelproductsinIndia.

ByropinginBollywoodcelebrities,IILhas
beenabletoincreaseitsvisibilityinthe
ruralpesticidemarket

No major capex in coming years; focus on increasing utilization

Post completion of Dahej facility, IIL does not envisage any major capex for
setting up new manufacturing/R&D units. Over the last five years, the
company invested Rs2bn in setting up green field formulation as well
technical facility at Dahej. This project was largely funded by debt.
Consequently, net debt/equity ratio ballooned from 0.1x to 0.9x over FY10
14. Similarly, RoCE deteriorated from 26.6% in FY10 to 16.2% in FY14.
Currently, this new unit is operating at suboptimal utilization levels of 35
40%.Atpeakcapacityutilization,thisfacilitycangeneraterevenuesof~Rs5
6bn,asperthemanagement.BytheendofFY16,themanagementexpectsto
rampupproductionandachieve75%utilizationlevels.Asoperatingleverage
kicks in, margins as well as operating cashflows will improve, which should
improve the net debt to equity position of the company. We expect return
ratiostoinchbacktowardsFY10levelsbytheendofFY17.
ReturnratiostostabilizeatFY10levels
30

RoE(%)

(%)

Withnofurthercapex,operating
leverageshouldhelpimprovefreecash
flowsandreducedebt.

NetDebttoEquityballoonedto0.9xinFY14
3,000

RoCE(%)

(Rsmn)

NetDebt

NetDebt/Equity

(%)

1.0

2,500
0.8

20

2,000
0.6

1,500
10

0.4

1,000

0.2

500

FY17E

FY16E

FY15E

FY14

FY13

FY12

FY11

FY10

0
0

0.0
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E

Source:Company,IndiaInfolineResearch

Insecticides (India)

Revenue CAGR highest amongst peers; to maintain same pace over

FY15-17E

Over FY1014, IIL has managed to outpace its peers on the revenue growth
front.Whiletheagrochemicalindustryhasseen~17%CAGR,IILhasclocked
23% during the same period. Even when we look at 9M FY15 which was a
weak period for all the companies due to deficient monsoon, IILs revenues
saw 10% yoy increase while the industry average stood at 9%. This
outperformance can be attributed to its aggressive marketing and brand
buildingstrategy.Beingafairlynewplayerintheagrochemicalspace,IILwas
facedwiththechallengeofgainingafootholdintheindustrywhichislargely
dominated by major MNCs like Bayer, BASF, Monsanto, etc., and domestic
stalwarts like Rallis, UPL, Dhanuka etc. As per industry estimates, market
leader Bayer commands 18% market share while UPL is close second with
16%. Rallis is distant third with 9%. IILs strategy to grow by acquiring well
knownbrandsandlaunchingnewinnovativeproductsthroughcollaboration
with foreign innovators has paidoff well. The company has managed to
increaseitsmarketsharefrom1.9%inFY09to5.5%inFY15.Recentlaunches
likeHakama,Pulsor,Nuvanarelikelytogainfurthertractionwhiletheolder
established brands like Thimet, Monocil, Lethal, Victor etc will continue to
dominate in their respective segments. Also, foray into technical
manufacturing is expected to further strengthen growth prospects in the
coming years. We envisage 30% revenue CAGR during FY1517E from the
technicalmanufacturingsegment.Overall,weestimatethecompanytopost
~20%CAGR.

PeerComparison
Company
BayerCropScience
DhanukaAgritech
ExcelCropCare
Insecticides(India)
PIIndustries
RallisIndia
UnitedPhosphorus
IndustryAverage

FY11
24.0
20.3
12.8
19.3
37.5
23.6
5.5

YoyRevenueGrowth(%)
FY12
FY13
6.3
19.9
7.8
10.0
6.7
13.0
15.9
18.2
22.6
8.9
17.4
14.4
33.2
19.7

FY14
19.1
26.8
26.2
40.1
21.5
19.8
17.3

4yr
CAGR(%)
17.1
16.0
11.0
23.0
22.2
18.7
18.5
17.0

IILssuperiorrevenuegrowthis
attributabletoitsabilitytoacquire
popularbrandsandsellthemthrough
aggressivemarketingstrategies

Source:Company,IndiaInfolineResearch

Insecticides (India)

Earnings to accelerate over FY15-17E led by OPM expansion

In spite of above average revenue growth, IILs margins have been much
below industry average. Its product portfolio has always been skewed
towards generics products which are essentially low margin. Moreover, in
order to gain a foothold in the industry, the company has been offering
higher discounts and rebates (~8% of sales v/s industry average of 24%).
These factors have weighed in on the OPM over the years. However, in the
coming 23 years OPM should expand by ~110bps on the back of higher
contribution from top ten brands that command superior margins, higher
capacityutilizationfromDahejplantleadingtohigheroperatingleverageand
lowerdiscountstodistributors.Weexpectoperatingprofittoregister~27%
CAGRduringFY1517E.Improvementinoperatingprofitwouldacceleratethe
earningsoverthenexttwoyearswithcompoundedgrowthof~43%v/s~14%
overFY0914.
OPMtoimprove~133bpsoverFY1517E
2,000

(Rsmn)

OperatingProfit

OPM%

Higherdiscountsandgenericproduct
portfoliohasweighedinonmargins;
howeverweexpectOPMtoexpand
~133bpsoverFY1517E

PATtoaccelerateoverFY1517E
(%)

1,800

14

(Rsmn)
12

1,600
10

1,400
1,200

1,200

PAT

Growth%(YOY)

(%)

40
800

1,000

50

1,000

30

600
6

800
600

400
200
0
FY13

FY14

FY15E

FY16E

20

400

200

FY17E

10
0
FY13

FY14

FY15E

FY16E

FY17E

Source:Company,IndiaInfolineResearch

RevenueBreakupSegmentwise(FY14)
3%
8%
Insecticide
66%
Herbicide

Fungicide

23%
PGR

Source:Company,IndiaInfolineResearch

Insecticides (India)

Robust earnings growth available at attractive valuation

Indian agrochemical companies have seen multiple phases of valuation re

rating in the past 1215 months. The industry has seen a healthy growth of
1215% during FY1114 and is expected to grow at the similar rate in the
coming35years.WeforecastIILsrevenueandearningsCAGRat~20%and
~43% respectively over FY1517E along with ~133bps margin expansion
bolstered by increased contribution from specialty products, differentiated
productofferings,strongdistributionnetwork,operatingleveragefromramp
up at Dahej facility and new product launches from international Exportstosupportrevenuegrowth,while
collaborations.IILisalsofocusingonincreasingitsexportsbyventuringinto rampupinCRAMSbusinessremainskey
monitorable
newgeographieslikeMiddleEast,Africa,andSouthAsiaandexpectsexports
to contribute 20% to the topline in next 23 years. Currently, exports form
less than 1% of total revenues. Dahej facility will also be used to build the
highlylucrativeCRAMSbusiness.Howwellthemanagementisabletoramp
upCRAMSremainsakeymonitorablethough.

IILtradesat9.3xFY17EPEandgiventherobustgrowthenvisaged,weexpect
the stock to rerate from current levels. This would be supported by
improving return ratios and margins, positive free cashflows and easing
leveragepostthecompletionofcapex.WeinitiatecoveragewithBUYrating
and12monthtargetofRs1080,basedon12xFY17EEPS.

Valuationsnapshot
EPScagr(%)
MCap
FY17E
PE

FY1517E
CMP(Rs)
(RsBn)
OPM(%)
RoE(%)
FY16E
FY17E
Company
BayerCropScience*
3310.0
121.2
14.9
20.0
19.6
26.7
22.4

DhanukaAgritech
626.0
31.3
17.6
29.5
27.3
24.1
18.6
ExcelCropCare*
966.0
10.6
11.0
24.6
20.3
10.6
8.8
Insecticides(India)
834.0
10.6
12.2
26.5
42.3
12.9
9.3
PIIndustries
638.0
87.1
20.9
29.3
27.2
28.2
22.1
RallisIndia*
230.0
44.7
16.5
24.3
24.3
21.6
17.6
UnitedPhosphorus*
472.5
202.5
19.5
20.1
17.9
14.5
12.4
Source:Companies,IndiaInfolineResearch;*Bloombergestimates

IIL1yrfwdPEbands
2x

1000

5x

9x

12x

15x

SharePrice

900
800
700
600
500
400
300
200
100

Jan15

Sep14

Apr14

Nov13

Jun13

Jan13

Aug12

Mar12

Oct11

May11

Dec10

Jul10

Feb10

Sep09

Apr09

Source:Company,IndiaInfolineResearch

Insecticides (India)

Key Risks
ErraticmonsoonTimelyandnormalrainfallisessentialforagrochemical

companies to post good performance. Deficient and delayed monsoon

will negatively impact growth. Besides, unseasonal rainfall can cause
significant damage to standing crops resulting in losses to farmers
income.
Lower incidences of pest infestation Consumption of pesticides also

depends on degree and type of pest infestation. Reduced incidence of

pestinfestationwillhamperpesticideofftakes.
Delay in getting approvals Registration of pesticides is a long and

tedious process in India. It can take anywhere between 46 years to

launchanewnovelmolecule.Anydelaycanpushthelikelybenefitsfrom
thatproductfurther.
Forex fluctuations Imported raw materials constitute 30% of the total

raw materials thus exposing it to fluctuations in foreign exchange.

However,managementplanstoincreaseexports(20% oftotalrevenues
byFY17fromthepresent1%)whichwillactasanaturalhedge.
Lower prices of commodities Fall in prices of agricultural commodities

orlowerMSP(minimumsupportprice)willreducetheincomeoffarmers.
Unlike fertilizers, prices of agrochemicals are not subsidized by the
government and farmers may choose to decrease their purchases of
agrochemicalstolowertheircostofproduction.

Insecticides (India)

Company Background

IILisoneofthefastestgrowingagrochemicalcompaniesinthecountrywith
presenceacrosstheentirespectrumofagrochemicalcategory.Thecompany
wasincorporatedin1996andwasinvolvedonlyintradingofagrochemicals
in the country. In 2002, IIL started manufacturing operations by
commissioning its first formulation facility in Chopanki in Rajasthan.
Currently, the company operates 4 manufacturing plants with an overall
formulation capacity of 59250MT and technical capacity of 11800MT. With
two state of the art R&D centers, IIL is working on more than 10 process
patent.Ithasreceived1processpatentandhasfiledfor8more.
IIL is run by experienced management team headed by Mr. Hari Chand
Aggarwalwhoisthechairmanoftheboard.Hehasmorethanthreedecades
ofexperienceinthefieldofagrochemicals.Hehasheldprestigiouspositionat
various industry bodies. He was the President of North Indian Pesticides
Manufacturing Association for five terms and was also the director of Crop
Care Federation of India. His son, Mr Rajesh Aggarwal, is the managing
director of the company and is responsible for day to day activities of the
company.

BoardDetails
Name
HariChandAggarwal
RajeshAggarwal
NikunjAggarwal
NavinShah
NavneetGoel
AnilKumarSingh
VirjeshKumarGupta
GopalChandraAgarwal

Fromanagrochemicaltradingcompany
in1996,todayIILruns4manufacturing
plantsand2R&Dcenters

Designation
Chairman
ManagingDirector
WholeTimeDirector
IndependentNonExecutiveDirector
IndependentNonExecutiveDirector
IndependentNonExecutiveDirector
IndependentNonExecutiveDirector
IndependentNonExecutiveDirector

Source:Company,IndiaInfolineResearch

10

Insecticides (India)

Financials

Incomestatement

Keyratios

Y/e31Mar(Rsm)

FY14
8641
818
(67)
(269)
5
487
(87)
399

399

FY15E
9832
1147
(91)
(350)
5
711
(156)
555

555

FY16E
11643
1449
(91)
(317)
6
1047
(230)
817

817

FY17E
14263
1854
(101)
(301)
7
1459
(321)
1138

1138

FY14
127
2,339
2,466
2,426
43
133
5,068

FY15E
127
2,873
3,000
2,829
43
133
6,004

FY16E
127
3,608
3,735
2,688
43
133
6,598

FY17E
127
4,635
4,762
2,553
43
133
7,491

2,243
111
2,623
3,117
1,279
1,074
(2,036)
(810)
90
5,068

2,402
111
3,094
3,450
1,482
808
(2,261)
(386)
398
6,004

2,561
111
3,352
3,910
1,595
957
(2,653)
(457)
575
6,598

2,710
111
3,900
4,760
1,758
1,172
(3,230)
(561)
770
7,491

FY15E
711
91
(156)
(471)
175
(250)
(75)

403
(59)
39
307

FY16E
1,047
91
(230)
(258)
650
(250)
400

(141)
(82)

177

FY17E
1,459
101
(321)
(548)
691
(250)
441

(134)
(111)

195

Revenue
Operatingprofit
Depreciation
Interestexpense
Otherincome
Profitbeforetax
Taxes
Adj.profit
Exceptionalitems
Netprofit

Balancesheet
Y/e31Mar(Rsm)
Equitycapital
Reserves
Networth
Debt
OtherLTLiabilities
Def.taxliability
Totalliabilities
Fixedassets
Investments
Networkingcapital
Inventories
Sundrydebtors
Othercurrentassets
Sundrycreditors
Othercurrliabilities
Cash
Totalassets

Cashflowstatement
Y/e31Mar(Rsm)
Profitbeforetax
Depreciation
Taxpaid
Workingcapital
Operatingcashflow
Capitalexpenditure
Freecashflow
Equityraised
Investments
Debtfin/disposal
Dividendspaid
Otheritems
Netincash

FY14
487
67
(87)
(244)
222
(457)
(235)

(111)
426
(45)
8
43

Y/e31Mar
Growthmatrix(%)
Revenuegrowth
Opprofitgrowth
EBITgrowth
Netprofitgrowth
Profitabilityratios(%)
OPM
EBITmargin
Netprofitmargin
RoCE
RoNW
RoA
Pershareratios
EPS
Dividendpershare
CashEPS
Bookvaluepershare
Valuationratios(x)
P/E
P/CEPS
P/B
EV/EBIDTA
Payout(%)
Dividendpayout
Taxpayout
Liquidityratios
Debtordays
Inventorydays
Creditordays
Leverageratios
Interestcoverage
Netdebt/equity
Netdebt/op.profit

FY14

FY15E

FY16E

FY17E

40.1
18.0
18.5
13.1

13.8
40.3
40.5
38.9

18.4
26.3
28.6
47.2

22.5
27.9
29.0
39.3

9.5
8.7
4.6
16.2
17.4
5.6

31.5
3.0
36.7
194.4

23.2
19.9
3.8
14.2

11.1
17.9

54
145
95

11.7
10.8
5.6
19.2
20.3
6.7

43.7
4.0
50.9
236.5

16.7
14.4
3.1
10.2

10.7
22.0

55
145
95

12.4
11.7
7.0
21.7
24.3
8.9

64.4
5.5
71.6
294.5

11.3
10.2
2.5
7.9

10.0
22.0

50
140
95

13.0
12.3
8.0
25.0
26.8
10.8

89.7
7.5
97.7
375.5

8.1
7.5
1.9
6.0

9.8
22.0

45
140
95

2.8
0.9
2.9

3.0
0.8
2.1

4.3
0.6
1.5

5.8
0.4
1.0

FY14
0.82
0.64
0.09
1.21
3.10
17.4

FY15E
0.78
0.67
0.11
1.19
3.03
20.3

FY16E
0.78
0.77
0.12
1.27
2.73
24.3

FY17E
0.78
0.83
0.12
1.36
2.47
26.8

DuPontAnalysis
Y/e31Mar(Rsm)
Taxburden(x)
Interestburden(x)
EBITmargin(x)
Assetturnover(x)
Financialleverage(x)
RoE(%)

11

Best Broker of the Year by Zee Business for contribution to broking

Nirmal Jain, Chairman, IIFL, received the award for The Best Broker of the Year (for contribution to broking in India) at India's Best Market Analyst
Awards 2014 organised by the Zee Business in Mumbai. The award was presented by the guest of Honour Amit Shah, president of the Bharatiya
Janata Party and Piyush Goel, Minister of state with independent charge for power, coal new and renewable energy.

'Best Equity Broker of the Year' Bloomberg UTV, 2011

IIFL was awarded the 'Best Equity Broker of the Year' at the recently held Bloomberg UTV Financial Leadership Award, 2011. The award presented
by the Hon'ble Finance Minister of India, Shri Pranab Mukherjee. The Bloomberg UTV Financial Leadership Awards acknowledge the extraordinary
contribution of India's financial leaders and visionaries from January 2010 to January 2011.

'Best Broker in India' Finance Asia, 2011

IIFL has been awarded the 'Best Broker in India' by Finance Asia. The award is the result of Finance Asia's annual quest for the best financial services
firms across Asia, which culminated in the Country Awards 2011

Other awards
2012
BEST BROKING HOUSE WITH
GLOBAL PRESENCE

2009, 2012
& 2013
BEST MARKET
ANALYST

2009
FASTEST GROWING
LARGE BROKING HOUSE

BEST BROKERAGE,
INDIA

BEST BROKER,
INDIA

MOST IMPROVED,
INDIA

Recommendationparametersforfundamentalreports:

BuyAbsolutereturnofover+15%
AccumulateAbsolutereturnbetween0%to+15%
ReduceAbsolutereturnbetween0%to10%
SellAbsolutereturnbelow10%

Call Failure In case of a Buy report, if the stock falls 20% below the recommended price on a closing basis, unless otherwise
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