Indofil Industries - Unlisted Investments
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Indofil Industries

Key Metrics:

S. No. Parameter Performance
1 Earnings Per Share Rs. 76/-
2 PAT Growth% (YoY) 12%
3 Past 5 year growth in PAT 41%
4 Industry Valuation Multiple 28.3x
5 Annual Sales (in crs.) Rs. 1,816/-

Company Background:

Indofil Industries Limited (Company) is a part of the K. K. MODI group of companies. The Company is engaged in the manufacturing, distribution and marketing of Agricultural and Specialty Chemical products globally. It is among the top three producers of Mancozeb in the world.

Past growth:

The Company has grown from a predominantly domestic player in 2008 (export constituted less than 15 per cent of sales); Indofil Group has increased its presence in exports, backed by increase in registration in the overseas market and acquisition of European Dithane business from Dow Agrosciences B.V. The group’s established domestic distribution network with more than 3850 distributors and more than 35000 dealers spread across India and established relationship with reputed global players in export market, has resulted in its healthy compounded annual growth of 15 per cent over the last five years.

Sound financial performance:

The company is investor friendly and gives a high dividend rate. It has given dividends regularly and it was 60% of face value in the financial year FY15-16. Its EPS was Rs. 76.48/- for the year ended 2015-16. Growth rate of sales of past 5 years has been over 15% CAGR. PAT has grown 4 times over the past 5 years.

Future Growth:

Currently the group is undertaking a capital expenditure (capex) program towards setting up a Greenfield multipurpose agro synthesis plant for a total capital outlay of Rs. 1.7 billion (debt funded to the tune of Rs. 1.49 billion) at Dahej. Production capacity of the plant would be 4,000 tonnes per annum (TPA) of Technical. The plant is operational from October 2016. The group also plans to set up a new facility at Dahej for manufacturing of mancozeb (total expected capacity 35,000 MTPA). The total outlay of the project is estimated at Rs. 4.6 billion, for which the group plans to avail Rs. 3.7 billion of debt. The company plans to add new products in its herbicides segment to boost further sales and it plans to add another billion dollar in valuation over the next 3 years.