Financial Weekly

SMART 27th December 2020 to 2 nd

January 2021 17
INVESTMENT

SMART
BUY OF THE WEEK
Dark Horse
Dark Horse-1
AIMCO PESTICIDES LTD
(524288) (97.50) (Face Value Rs.10)
Incorporated in 1987, AIMCO Pesticides Particulars 3 Months Ended
Limited is an integrated agrochemical com- Q2FY21 Q2FY20 % Var.
pany engaged in manufacturing, market- Sales 49.18 41.31 19%
ing, and exporting various agrochemical PBT 2.62 2.12 24%
products. The company is into manufac- PAT 1.88 1.42 32%

turing technical grade chemical and formulations of several Insecticides, Fungicides, and
Herbicides. AIMCO is a 3-Star Government recognized Export House, with operations in
more than 42 countries globally, including developed markets such as the USA and Austra-
lia. In its vast history spanning over four decades, the company has been credited with
introducing and commercializing many agrochemicals. For instance, AIMCO was the first
Indian company to manufacture Chlorpyrifos and Triclopyr technicals in India, along with
being the second manufacturer of Imidacloprid.
It has an equity base of just Rs.9.58 crore that is supported by reserve of around Rs.31.80
crore. Promoters hold 51.34% while investing public hold 48.66% stake in the company.
Company had posted strong numbers for Q2FY21. Its PAT zoomed 32.39% Rs.1.88 crore
as against Rs.1.42 crore in Q2FY20 on 19% higher sales of Rs.49.18 crore fetching an EPS
of Rs.1.97.
Currently, the stock trades at a P/E of 18x. It has paid 15% dividend for FY20. The stock
has almost corrected 64% from its recent high of Rs.271 formed in December 2017.
Investors can accumulate this stock with a stop loss of Rs.85. It may
give very good returns in medium to long term.

Cont....