Disclosure: Have been investing since last 2 years and continue to add on dips.
Company: This was an subsidiary later acquired by Conagra Foods USA. They hold close to 51% in the company.
Crystal edible oil (Non strategic brand and company intends to phase out slowly)
Sundrop edible oil
Act 2 popcorn
Sundrop peanut butter
Act 2 snacks
- Positive Triggers and opportunities:
Premium edible oil is duopoly between Sundrop and Saffola
Premiumization and shift away from local brand edible oils
Health consciousness for better quality edible oil
Opportunities in new products like snacks and peanut butter
Huge brand portfolio with parent company
Conagra not doing well and some restructuring going on
All conagra brands may not find favour with Indian taste
Financials: One can look at details on www.atfoods.com .
At current price it trades at PE of 38 and MCap of 1400 cr
Price to Sales : 2 times
Topline and bottomline have been erratic due to change in product profile, new product launches, Ad expenses, tax rate changes etc.
Compare Unilever/P&G parent Mcap to Conagra: Approx 8-12 times
Compare Agrotech Mcap to HUL: 100 times
This is not for folks who are capable of chasing 25%+ opportunities every year.(I know there many on this forum) It is more for laid back investors who lack capability of analyzing Q financials threadbare( like me ) and who don’t mind lower returns during the journey as long as they can hold it for a decade for decent returns.