Monday, November 7, 2011

ADVANTA INDIA - BUY ( REPEAT)


Advanta India is a true  MNC in agriculture sector from United Phosphorous Group. It  is the holding company for the global business of Advanta. Company is operating in various countries includes  India, Australia, Thailand, Argentina USA ..etc .Company is a major player  in research, production and marketing of hybrid seeds and oilseed crops . Company also  having a very good R&D and in India it is collaborating with universities like University of Mysore and University of Dharwad for developing new varieties. Company is producing wide variety of seeds include sunflower, corn, rice, rapeseed mustard, sorghum Oats ..etc. This geographical and product diversification reduces the risk of  seasonality to a certain extend in this business. In Thailand ,company is operating through Pacific Seeds(Thai) Ltd ,in Australia it is with Pacific seeds Pty Ltd, and in Argentina it is through Advanta seeds and Advanta Semillas . Company also made some acquisitions in USA like Crosbyton Seed Company and Garrison & Townsend Seed Company along with a subsidiary Advanta US Inc. Many more mid size companies are also in its fold as step down subsidiaries like Nutrisun oil . A major  negative of this company till now is the  huge debt of in its balance sheet . Interest of the same is eating a major part of its profits. Advanta is now  planning to de- leverage .As a first step company recently re-structured its debt by issuing FCCB and  repaying part of debt carrying high interest rate  .Effect of this arrangement is already visible is latest September qtr result. On a consolidated basis company posted a turnover of Rs. 696 Cr and a net profit of Rs.27 Cr in last year  .For the latest qtr ended September , Company posted  a sales of  Rs. 254 Cr v/s Rs.176 Cr. and a net profit of Rs.13 Cr v/s Rs.10 Cr After a long period  of up and downs in its performance, it is expected to show a steady growth from here on.At current market price of Rs.395 , it is a good BUY for medium to long term investment.

 

23 comments :

  1. Dear VP,

    What is your call on Insecticide India?

    Satya

    ReplyDelete
  2. Dear Satya

    Consider it in a correction around Rs.320( based on current financials)

    ReplyDelete
  3. dear valuepick ji, among KAVERI SEEDS and ADVANTA which fits into warren buffet's "MY HOLDING PERIOD IS FOREVER" criteria?
    thanks in advance
    senthil

    ReplyDelete
  4. Hello sir,
    I bought 250 EPC industries at Rs.80.Now its trading around 140.Some say it'll go upto 700.What should i do?Hold or sell?plzz help

    ReplyDelete
  5. sir what is your current view on EPC IRRIGATION?
    are they planning for rights issue? rights issue will be at what price?
    kindly reply
    thanks in advance
    senthil

    ReplyDelete
  6. dear valuepick ji,
    i have sent a query mail to valuepick@rediffmail.com.
    kindly reply for that too sir.
    thanks in advance
    regards
    senthil

    ReplyDelete
  7. sir,

    EPC industries of your picks has declared right issue,any target or opinion from you,is the right issue at 10rs or any premium.

    Regards
    Ramesh Arjun

    ReplyDelete
  8. value pick your views on gujarat state petro (gspl) and target analysis?

    ReplyDelete
  9. DEAR VP...

    Advanta today 12% up... where wll be profit book? any tgt ?

    ReplyDelete
  10. Unbelievable, this one also moves up after your reco! Keep going valuepick.

    ReplyDelete
  11. Dear Valuepick,
    Your views about Xpro India.

    ReplyDelete
  12. SIR HOW IS THE HOLDING IN THE CENTUM AS U SUGGEST FOR L/TURM?

    ReplyDelete
  13. Dear Senthil

    Both are good for long term .I don't believe in "FOREVER" . Holding period depends on the ability of the management to utilise the opportunities and grow the business.

    ReplyDelete
  14. EPC is expected to come out with the rights issue at a good discount to the current market price but some premium to the Face Value.Unable to predict the target , but optimistic about the business and this company in long term

    ReplyDelete
  15. DEAR SIR DUE U THINK THAT FUTURE RESULTS OF TASTY BITES WILL BE SO GOOD LIKE AVANTI FEEDS/COCHIN MIN/INDAG/PITTI ETC.?????

    I HAVE MISSED ALL ABOVE UR TRAINS.
    KINDLY SUGGEST THAT TASTY BITES, FAIRFIELD ATLAS/ENKEI/ROYAL ORCHID/SRINIVASA/KREBS WILL BE ABLE TO BE DARK HORSE???

    KINDLY SUGGEST ME FROM ABOVE FOR WHICH HUGE INCREASE IN PROFIT IS SEEMS PSSIBLE DUE TO SOME EXPANSION/ MANAGEMENT EFFORTS???
    I HOPE ABOVE RESPONSE WILL BE THE GREAT HELP TO ME FROM U SIR.-THANKS-

    ReplyDelete
  16. DEAR SIR.
    I WANT TO SWITCH-OVER FROM LUDLOW TO SUPERHOUSE.
    KINDLY GIVE UR VALUEABLE SUGGESTION ON MY DECISION.

    ReplyDelete
  17. Dear Nilesh

    History of Sidharth Birla group is not comfortable, so go to EXPRO if you are interested to take above average risk

    ReplyDelete
  18. valuepick sir,
    whats your view on hanung toys and textils ?
    Is it really bad company that deserves pe of around just 2.5!! Anything wrong in the company.

    ReplyDelete
  19. Not comfortable with this high debt company.

    ReplyDelete
  20. sir thanks for gspl reply..
    I want to ask will gspl follow gujarat gas downfall i mean has it the same problems of pricing of gas or else?

    ReplyDelete
  21. DEAR SIR CAN U REPEAT BUY FOR SUPERHOUSE HAS GOOD RESULT?

    ReplyDelete

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