Saturday, September 6, 2014

GTS-6 ANSWER - AIMCO PESTICIDES



Agrochemical sector is one which re rated sharply in this bull run. Market leaders like United Phosphorous ,Excel Cropcare ..etc hitting new highs every day . The per capita consumption of pesticides in India is just 475 gms per hectare as compared to 11800 gms per hectare in Japan and 3000 gms per hectare in USA.Indian pesticides market is expected to touch $5 billion by 2017.This is offering good growth potential for companies in this sector.In addition to this opportunity in local market,tightening of  pollution related norms in foreign countries increasing export potential too. Aimco Pesticides is relatively an unknown player in this sector.This company jointly owned by Pradeep Dawe and family and one of market leader in this sector- Excel Cropcare.Excel owns more than 25 % stake in this company which they acquired earlier  at a cost of Rs.24.50 per share .

                                                                                               This Mumbai based company is an early entrant in this sector and present in all major  product categories including Insecticides,Herbicides,Fungicides and Plant growth regulators.Company’s R&D facilities are approved by DST and Aimco is also a government recognised export house.Even if it is a pioneer in this sector, its financial performance was poor till recently. Company’s sizable debt was a big issue , but  recently it entered into a one time settlement with its bankers and retired substantial portion of  its debt . Now its debt is very negligible.Company also succeeded in registering few new products in overseas markets. Company currently earning 25-30 % income from export markets and it is expected to increase further.Company also planning to introduce few more new molecules.

                                  
  

 
 
 
Management seems paying renewed interest to revive this company in recent times. As a result , company reported substantial improvement in latest June quarter. Company reported profit after a long gap with  a top line of Rs.47 Cr and a net profit of Rs.1.5 Cr in this quarter.It can be considered only as an early  indication of changing trend and one should wait and watch the continuity of the same going forward.But promoters increasing confidence is a factor to read along with this improvement. For the past many months they are aggressively hiking stake through open market purchases. ( Check promoter purchase details HERE)


Aimco’s stock price gained in recent months due to various factors like  improving financials ,over all sector re-rating and aggressive promoter buying .Promoters bought shares up to Rs.35 level.When we look into a stock which appreciated substantially in recent times, it is not prudent to take similar strategy for investor’s with different risk level. Investor’s with low to average risk level may wait for a correction of 20 % for a fresh entry (though I am not sure whether it will really happen  when  promoters are  purchasing aggressively ) and high risk investor’s can take some exposure even at current level.Stock trading only in BSE .

69 comments :

  1. Sir i mailed correct answer on your mail id...my name havent Appeared in correct list

    ReplyDelete
  2. Please go through the below link

    http://www.aimcopesticides.com/company.htm

    ReplyDelete
  3. Will try on Monday, Will not wait for correction, if promotors are buying around cmp ....
    Excel ind & excel crop both are flaring
    Its good have company of 50 rs for longterm

    ReplyDelete
  4. SO YOU ARE RECOMMENDING TO BUY AIMCO, IF COORECTED 20%. THAT MEANS ONE SHOULD CONSIDER BUY IT AT ABOUT RS 28 --( 20% LESS THAN 35), RIGHT?

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  5. Dear Sir,

    Request you to share your views on Styrolution ABS..

    ReplyDelete
    Replies
    1. Not a bad one , expecting medium growth

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  6. Sir,what is your view about snowman logistics & Sharda corpchem ltd.

    ReplyDelete
    Replies
    1. Not much idea about Sharda Crop

      Snow man is a company with decent potential , no meaning in commenting whether it is abuy or not without knowing the listing price.

      Delete
  7. Dear VP,What are your views about Sharda Cropchem IPO? Should one subscribe or avoid?
    Thanks
    Regards
    Girish

    ReplyDelete
  8. Sir your View oon Singer India. Can it be bought at CMP?

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  9. Hii VP sir Thankyou so much 4 your valueble pic. Sir pl. suggest that this comp. "Lumax Auto Technologies Ltd" was in your recommendations pic of september 2013 and doing very well recently. This stock is rocking among other auto ancillary stocks. sir you have not given any update about this company. pl. share what are the future expectations of growth potential for this company Pl share ur views that it is still hold or book profit. But for auto sector Positive outlook is seeing in domestic as well as US economy. Sir, Also Pl. clear my doubt that how is it possible to record EPS of Rs 15.97Cr & NP of Rs 21.77Cr in the similar Revenue range Rs 121-131Cr for the June 14 QTR FY15 wrt March 14 QTR FY14.

    ReplyDelete
    Replies
    1. Check the other income and extra ordinary income too

      Delete
  10. Dear VP sir,thank you very much for your superb teaching method.Many readers like me learn lot of new things through this journey.During the exploration of original stock in GTS,we find many other good stocks like Coloumbus found America.I have also found one stock which fulfills many parameters of GTS-6.It is Dhoot Industrial Finance (526971).I am eagerly waiting for your opinion before investing in it.Kind request to look into the stock if you do not track it.Thanks in advance...

    ReplyDelete
    Replies
    1. I am not a great fan of Videocon Group

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    2. Dear Sir,You are right and I also know that you are not a great fan of Videocon Group.But here the surname is Dhoot doesn't mean they are from Videocon.One of the director Mr Abhay Firodiya is also director in Force Motors Ltd.Similalrly other directors belong to other industries but no one belongs to Videocon Group.I have referred Annual Report 2013-2014.I am sharing the link as below:
      http://www.dhootfinance.com/Common/Uploads/DMS/Annual%20Report%20-2013-14.pdf

      Delete
    3. Sorry , mistake may be from my part . Since I am not strictly tracking this stock , I overlooked it.

      Generally trading companies are getting low valuation

      Delete
  11. Sir what are your views on Camlin Fine science

    ReplyDelete
    Replies
    1. Camlin Fine Science recommended @ Rs.56 when its face value was Rs.10. Now its face value is Rs.1 and market price is Rs.63. Stock already turned as a 10 bagger for my old readers .See the below link

      http://value-picks.blogspot.in/2011/03/camlin-fine-chemicals-unknown-gem.html

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    2. Thank you sir for ur reply. I am new investor and studying the market. Its been really great to read your posts and insights.

      Delete
  12. Please post my comment as it will help retail investors.

    Guys please keep in mind that stock is not trading at rs 35 anymore. In the last one week the stock has moved up after the guess the game started. Stock trades at over rs 45.

    Please be cautious before buying at current prices!

    I do not intend to dis respect anyone with my post but please understand that there are people who will blindly buy the recommended stocks.

    ReplyDelete
    Replies
    1. I don't know why need to post an extra comment for this ,didn't you read what I posted as the last paragraph ?

      Delete
    2. Dhoot indl. also vidiocon group mantoin in co facts.

      ARVIND PATNI

      Delete
  13. Please let me know your view on resonance specialities.....kindly reply...

    ReplyDelete
  14. Sir , please let me know for Dlinkindia, is this right time to invest in it?

    ReplyDelete
  15. Sir what is your view on Smartlink Network Systems?

    ReplyDelete
  16. Sir,what is your view about Sintex & DB Corp.

    ReplyDelete
  17. Respected VP ji. Pls give your opinion about Vista Pharma and Yuvraaj Hygiene

    ReplyDelete
    Replies
    1. I am not tracking it.Please let me know what interesting fundamental points you find in these cos.?

      Delete
  18. Sir,
    your views on SNL Bearings please.

    ReplyDelete
  19. Is it okay to enter Mold Tek Packaging right now? CMP Rs.145, was recommended at Rs.116!

    ReplyDelete
  20. hello sir, Mr VP,

    Have been following your site for quite sometime and thanks a lot for all your suggestions. Could you please provide your views on the below mentioned companies:

    1. Tanla Solutions

    2. Aditya Birla Chemicals

    3. RS Software (is it still OK to go with at the CMP or wait for a 10%-15% correction. Fundamentals might be strong but it ran up too very fast. Unable to make out reasons for such an exponential move)

    4. Astral Polytechnik

    ReplyDelete
    Replies
    1. Tracking only Aditya Birla Chem ,which recommended @ Rs.89 in the below link.At current price of Rs.291 , neutral on it

      http://value-picks.blogspot.in/2012/10/aditya-birla-chemicals-better-times.html

      Delete
  21. Dear Sir,

    Thanks for this stock,
    Do you have any view on apcotex industries?

    Regards,

    ReplyDelete
    Replies
    1. Recommended @ Rs.112 even before stock split.Still one can hold it @ CMP of Rs.300 + post stock split

      http://value-picks.blogspot.in/2010/03/apcotex-industries.html

      Delete
  22. Dear VP,
    I was going through your past blog posts and came across Basant Agro.Do you think it still has the potential to be a multibagger ? It has already gone to 10.50 from your recommended level of 4.Your guidance will help as always

    ReplyDelete
    Replies
    1. Neutral at CMp , stock already appreciated 150 %

      Delete
  23. sir, what's your view on kirloskar Oil and india cements?

    ReplyDelete
  24. Dear Sir,

    Please share your views on Arvind Remedies..

    The company appears at a decent valuation in pharma space.

    Thanks you

    ReplyDelete
  25. Simran farms ltd.. Your view plz

    ReplyDelete
    Replies
    1. Already suggested to Exit, not tracking now.

      Delete
  26. How does Oriental carbon, CCL products , gulf oil appear to u?

    ReplyDelete
    Replies
    1. Oriental Carbon recommended @ Rs.93 in the below link which is currently trading @ Rs.340 . One can still hold it

      http://value-picks.blogspot.in/2010/03/oriental-carbon-and-chemicals.html

      Delete
  27. Dear VP Sir,

    Do you still suggest to Buy Bajaj Hindustan at CMP for the long Run? I am eagerly waiting for ur reply.

    Thanks,
    Nixon Varghese

    ReplyDelete
    Replies
    1. If you are a low risk taker , better to wait for some clarity on policies in sugar sector.

      Delete
  28. Dear sir,
    Please advice on Astramicro, hold or sell.. Promoters reducing their stake, is it a matter of concern ? Please advice
    Thanks

    ReplyDelete
  29. Hi Sir ,
    The stock is in UC , making it impossible to buy, Do you expect a correction once this upper circuit is over or high risk traders can by in higher levels also ? If yes , what is price @ which the high riskers can buy ?

    ReplyDelete
  30. Dear VP sir,
    What is your view on Dr Datsons?

    ReplyDelete
  31. Dear VP
    Thank you so much for all your great efforts. Your Kopran is another gem in the making which will turn out to be a multibagger for sure. All the info you provided are true to the core. My neighbour was appointed as one of the senior sales team member yesterday. I was told by him that the managment is aggressively trying to get people from big guys like Reddy's. Let us hope that your efforts as well as ours will be fruitful soon. thank you. Janardhanan

    ReplyDelete
  32. Dear Sir,
    This is a general question.
    If you invest in a Multibagger potential stock, would you take of the investment when it doubled or wait for it to become a multi bagger?
    I mean playing it safe or taking more risk?

    ReplyDelete
  33. Your opinion about UsherAgro pl?

    ReplyDelete
  34. Plz give ur opinion on gujrat foils ltd for long term

    ReplyDelete
  35. Dear Sir,

    Can you please share your views on Menon a Bearings in the auto sector..

    ReplyDelete
  36. Dear VP Sir,

    What is your view on the following stocks : Enkei wheels, eastern treads, unjha formulations ltd. ?

    ReplyDelete
  37. Sir please advice ant vikas wsp & yogi infra,holding from many years.

    ReplyDelete
  38. Sir,
    Salutations. A recent discoverer of your truly genius and honest blog. From the day you recommended AIMCO it is in upper circuit. Upto which level we could enter in the stock, Sir. i am a medium level risk taker. I have some exposure in investment in stocks. Best warm regards.

    ReplyDelete
  39. Dear VP Sir,
    This is my third comments,but none have been published yet.I have been following your blog for last three months and I have bought MOLDTEKPAC, and CAPF.
    Sir, you serving the investors community for no cost,a big salute for that.Kindly, 'it is benign request,keep your recommendation as they were earlier,Imean pls do not give and let people guess the recommendations because it is difficult to search the company on the basis of clues there in[as far as investors like me who have little knowledge of fundamentals].This is benifitting a certain group of investors.Also if possible pls GO PAID service provider.Kindly respond this time,I urge.KINDLY ANYBODY OTHER THAN VP SIR DO NOT MAKE ANY COMMENT.
    shailendra

    ReplyDelete
  40. VP Sir, Please look into Indiabulls Wholesale Services ( IBWSL) trading at 18.70 for Target 50 Plus in short time . Positive points for Indiabulls Wholesale Services
    1) Promoters Buying every Quarter
    2) Currently trading above 30 DMA
    3) SALES & PROFIT increasing YoY
    4) Available below 90% of book value.Book value is 153
    5)Net- Aset is 773 Crore and present Market is just 94 cr
    6)No Promoters Share is Pledge
    7)Holding (73.5 %)in Store one Retail which is trading above 60 levelsin NSE & BSE
    8)IndiaBulls Promoters are Trustworthy.
    9)50 % dividend in 2013 of facevale Rs 2
    10)Promoter Holding at 43.49% .
    11)Indiabulls is a Trusted Brand
    12)I B Technology a wholly owned subsidiary of Indiabulls Wholesale is presnt in 4 countries.
    In INDIA at Gurgaon, Mumbai, Bangalore.
    In USA at Calfornia and New Jerssey.
    In UAE at Dubai
    In South Africa at Capetown and Johansberg.
    13)As per analyst E-Retail is now a big thing and logistic and wholesale storage and distribution is going to cash it big. For eg Snowman Logistics

    CONS:
    1) As of such I don`t have any .

    As per Warren Buffet
    "Buy companies with strong histories of profitability and with a dominant business franchise."

    Indiabulls Wholesale service will cross 52 Week high very soon may be by this month itself .
    Regards
    Amit Rathore

    ReplyDelete
    Replies
    1. I am not a fan of Indiabulls group , so no comments.

      Delete
  41. Dear Sir,

    What is the view on MARICO currently trading at Rs. 281 /- is it suitable for investing now.please advice.
    Thanks & Regards,
    Ku.saravanan.

    ReplyDelete
  42. Hello, I am still invested in Aimco.. bought at 70 levels.. Should I hold or let go?

    ReplyDelete

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