Aimco Pesticides - Growing & Debt-Free Agrochemicals


(J2EE Professional) #41

thanks, the links are very helpful. Now with the new bankruptcy code, what happens with the cases like Aimco where the networth are already positive and applications to get out of BIFR is stuck because of the rule changes.

Also, on a seperate note, is BIFR now hearing any cases at all or not. Also, what happens to the new cases?


(Dhiraj Dave) #42

@j2eeprofession_

Since the net worth is positive and I assume company has not defaulted to any payment to financial/operational creditor, it is a normal company like any other listed company. In case, it has got some benefit in income Tax and sales tax under BIFR, I assume same would continue. (I am not sure on this point and scope of correction here, please take note of that.)

In new case, henceforth, the default company need to follow Insolvency and Bankruptcy code. For case in process under BIFR, on repeal of act, the company whose application are under consideration by BIFR are given 180 days to move application to NCLT under new insolvency act. There propsect to get moratorium would reduce substantially in my opinion vis a lender in new insolvecy act. This is more in the sense when you read act by word. The implementation of act is quite a different thing in Indian judicial system. BIFR was suppose to be great act but whose horribly executed and implented. Wish same is not future of insolvency act.


(J2EE Professional) #43

Thanks dhiraj…


(J2EE Professional) #44

Shareholding pattern released for the quarter. Most of the promoter holding is now in demat form. Hopefully, now, it will soon come out of t2t once everything is converted.


(Krishna Rai) #45

Good results by Aimco
1- Net sales has grown from 17.72 to 30.36 crores yoy for Q4. Last quarter sales were 24 crores.
2- Net profit has zoomed to 6.28 crores from 0.85 crores yoy for Q4. Last quarter profit was 1.78 crores.
3- EPS for the quarter is 6.80 vs 0.92 last year same quarter and 1.93 in the last quarter. Full year EPS is 12.30.

More details can be found here http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/2c14b2f0-e95b-43e4-8b56-8c7845eeba4e.PDF

Cheers,
Krishna


(J2EE Professional) #46

these are not just good numbers but awesome numbers. Even ex-other income the stock would have posted a 5rs this quarter’s EPS. This balance sheet along with numbers deserve a re-rating.


(J2EE Professional) #47

I particular thing in the BS that has caught my eye is that they are undergoing a massive capacity expansion. Does anyone has any ideas of their expansion plans?


(Sunny) #48

Hi,

First of all, thanks to j2eeprofession for starting the thread. I got attracted to aimco based on it’s cheapness. Good you touched upon why sales were falling from last couple of qtr. After the recent brilliant performance by the company I can see that their fixed assets have increased and another CWIP. Can anyone elaborate on what kind of expansion aimco is embarking upon ?
Another question that comes to my mind is that I can see the gross margins have improved a lot in this qtr. What has contributed to that improvement. I read an news article where got to know that prices of derivative used in agrochemicals have gone up a lot. So based on that even if they were able to maintain margins… it’s a good thing.
Understanding​ what was the reason for this performance is of utmost importance in my view because we can’t​ extrapolate one qtr results without any concrete reasons.

There is a note in results with some comment on management salary. By when we expect it to get resolved.

Disclosure : Tracking


(J2EE Professional) #49

is the message incomplete? could not understand the last line.


(Sunny) #50

Something went wrong. Now it is updated correctly.


(Yogansh) #51

Aimco Pesticides’ Story is unfolding to be a good turnaround anecdote. However, it has been difficult to spot the key driver behind this turnaround just by going through the past Annual Reports.
Company does mention about its strategy- of introducing newer and safer products, new registrations as well as entry into new markets and expansion of business in existing markets. But, there is no specific detail available with regards to the market or the product which has caused the change of fortunes.

There are several interesting points which I came across while going through Aimco’s financials on screener and preliminary reading of past Annual Reports.
Requesting the members to share their views or any information that is available, on the points below:

1- Post OTS scheme in FY13, company has been able to earn profit every single year at operating level.

2- In FY16 & FY17 the sales are down almost 40% as compared to FY15 but the profitability is inching towards all time high. It is important to learn the reason behind this shift. Did the company discontinue any operations that was earlier being a drag on its overall results?

3- As per AR16 Aimco will upgrade its manufacturing facility and add new molecule. And in the FY17 b/s FA has doubled and there is further CWIP. What is this new CAPEX? Is it just a replacement of old plant or an introduction of new machine to cater to the new products? An understanding on this front will help investors take a call on the sustainability and future prospects of the company.

4- Promoter Holding has been increasing for past few years. This is a +ve sign.

5- Which is Aimco’s major export market and its major clients? What kind of contracts does it have with them? (AR just mentions Brazil as a promising export market. No quantitative data is provided.)

6- Finally, where do we stand with regards to our BIFR proceeding?

Regards,
Yogansh Jeswani
Disclosure: Not Invested


(jagjit8277) #52

First of all sincere thanks to @j2eeprofession_ for introducing this thread. Didnt even know this company before and have been invested after reading this thread and bit of research on my side.

Amazing find and the story is just unfolding now!!


(J2EE Professional) #53

yogansh ji, kindly look at my posts. It seems most of your queries are answered there. Of course, you can use that as a starting point to dig deeper and help us all.


(J2EE Professional) #54

An article in Moneycontrol ->http://www.moneycontrol.com/news/business/stocks-business/as-aimco-pesticides-gets-out-of-a-difficult-past-is-it-worth-a-look-now-2300707.html


(Naz) #55

Company seems to be locked in a yearly upper circuit and price band has also been changed to 2% from 5% earlier. Looks like any potential up-move will come only after 30-Sept-2017.


(J2EE Professional) #56

not necessarily. Till 2-3 weeks back, the yearly limit was 140 or 142 and then suddenly for some reason it was increased to 167. also if this quarter or next quarter’s share holding pattern has 100% promoter shares as demat then it will come out of t2t and then would be eligible for 10 and 20% circuit levels too.


(sushildarveshi) #57

Some of the points that I observed

Huge increase in OPM in last quarter --> reason for this increase, any idea ?

Income Tax
2011 AR - Income tax of 48 Lakhs overdue pertaining to year 1998-99
2013 AR - mentions Income Tax of 98 Lakhs pertaining to year 1998-99
2016 AR - Income Tax 1.11cr pertaining to 1998-99

Why pending Income Tax is increasing ? Even if Income Tax officials put some interest rate, it would not increase from 48 lakhs to 98 lakhs in 2 years.

Receivables of 7cr is more than 6 months old - increased from just 4 lakhs in previous year

78% business is through exports, foreign exchange transaction loss of 1cr (previous yr 1.5 cr loss) --> can’t this be avoided through currency hedging ?

non fulfillment of exports - contingent liability doubles to 4.5cr --> what happened here ?

Disclosure - Contemplating Investment


(Akshay Kumar) #59

aimco.PDF (827.7 KB)
Aimco promoters issuing equity shares on preferential allotment/Private placement basis at the price 168. Can someone help me understand, if it is good news or bad news. Will this dilute and have impact on EPS?


(sowrabh) #62

It’s good news man…5 lakh shares isn’t going to dilute too much …also cash of nearly 8 crores will be coming in to the business


(Thor) #63

Company was usually declaring their quarterly results once in Sep of every year. It is already November but results are not yet announced. Sorry to ask but I have not seen this pattern before. Is it okay to do so and any idea why?