Wednesday, March 31, 2010


Bhagiradha Chemicals & Industries was incorporated
in 1994 by Mr Koteswara Rao and D Sadasividu ,both
were previously working at Indian Institute of 
Chemical Technology.Company produces high quality
basic pesticides includes Chlorpyrifos Ethyl, 
Chlorpyrifos Methyl,Clodinafop-Propargyl and 
Triclopyr Butoxy Ethyl Ester ..etc. Such pesticides
are used on a wide variety of crops such as cotton,
chilly, rice, sorghun, soyabean, sugarcane, groundnut,
vegetables, and flowers. The company has a 
state-of-the-art R&D center at Hyderabad
which employs 30 scientists.It has a contract 
manufacturing agreement with Dow AgroSciences 
for the herbicide Fluroxypyr. Dow AgroSciences  
is the original inventor of Fluroxypyr.
With an increasing trend of MNCs to outsource
molecules that have gone off patent, opportunity 
of Bhagiradha is very large.At the end of last
financial year company started the production
of a new product ‘clodinafop’.Company’s financials
are also improving every year.Last year company
posted a turnover of 104 crore and a net profit
of 9.5 crore which translates into an   EPS 
of Rs.19/- .It also declared a dividend of 30%. 
Bhagiradha is now trading at a price of Rs 70/- 
which is at a P/E multiple of  just 3.5.
Sales growth in recent qtrs are subdued but 
company sources claims that the same will pick up
in near future. Agrochemical companies are started
to re-rated in stock market.So keep an eye on this.


  1. Hi Sir,
    I follow ur posting and blog regularly.I have a question? i have sakthi sugars 565@102.Now sugar shares are going down bcz of govt intervention & brazil bumper crop.Is that sugar sector reached the bottom or still more downside left.Recently sakthi sugars declares year end dec09 results. It posts EPS 32 for whole yr.After good results also sakthi is not moving anything infact still going downward.their sales r 1350Cr NP 125Cr / wht is ur view on sakthi. should i exit the scrip or hold till sentiment revives. I respect ur suggestions on this at highest Plz dont say ur not track sugar space. I need your valuable opinion. Your help would be really appreciable. thanks in advance.... sudhir

  2. Dear Mr Sudhir
    As u are aware commodities always follows a cycle.At this point I really feels that sugar is still almost near its peak of this cycle. So you may get better return in percentage terms from other sectors at present. You mat re-enter in sugar stocks at a later stage .



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