Tuesday, September 29, 2009

Excel Crop Care Ltd.........cmp..132......

This is one co which I have recomended at 115 ,2-3 months back.It is a United Phosphorus gr co.
Excel Crop has a Mcap of 145 cr and sales turnover is 713 cr.The eps of last year was 25 and the Forex loss was at the tune of 18 cr.So if we add that amt the eps was as good as almost 40.
According to me this is a steal at this price where one gets into a very well managed gr co and also a very ambitious and responsible gr.
To my view ExcelCorp can give multiple returns from hereon.Even if we go by eps and p/e then it should easily touch 400 and on Mcap it can be 5-6 times from here...These are all forward looking statement and I reserve my right to be wrong.

Excel Crop Care Ltd.........

Excel Industries Limited, our founding company, started off in a Kitchen laboratory in 1941. Today it is ranked among industry leaders with a turnover exceeding Rs. 4000 million. Since its inception, Excel Industries has built a solid history and reputation of developing, manufacturing and exporting chemicals. The company achieved over 100 product nd process breakthroughs that are serving the specific needs of various clients even now. Excel Industries is the first company in Asia and third in the world to make Endosulfan Technical. The first in Asia to make Butene Diol. The second in the world to develop Glyphosate Technical. And the third company in the world to develop Aluminium Phosphide. Excel Industries has received various awards in recognition of their dedication and excellence in the field of chemicals. Excel Crop Care was set up in 2003 and actively promotes Integrated Pest Management (IPM) to Indian farmers. We are demonstrating the use of Integrated Crop Management (ICM) techniques to the farmers, using innovative methods. In keeping with the philosophy of our founder, Mr. C. C. Shroff, we at Excel Crop Care also believe that in every interaction with our clients, our individual as well as our corporate character, integrity and professionalism is under scrutiny. As a result, we always keep the virtues of high quality, cost effectiveness, consumer need fulfillment, fair prices and fair trade practices uppermost in our minds.

Excel Crop Care adopts an integrated approach to manufacturing and has built world-scale capacities to make Technical Actives and Formulations. To ensure quality and continuity of supply, we produce key raw material ourselves or source them from our associate companies. Leveraging our capabilities in basic chemistry, we have developed and built-up a range of formulations to cater to special needs arising from peculiar climatic and pest conditions. Excel Crop Care is known for mastering hazardous technologies and manufacturing corrosive compounds that others consider "difficult to make". We are among the world's leading manufacturers of Endosulfan, Glyphosate, Chlorpyriphos, Aluminium Phosphide and Zinc Phosphide, which are made to the highest purity. All our manufacturing plants are the result of in-house research and engineering and have been installed by our own project team. Our main manufacturing plant at Bhavnagar is ISO 9002, ISO 14000 and OSHAS 18000 certified and meets statutory requirements on quality and safety. The more recent plants at Gajod and Silvassa are equipped with state-of-art machinery and are in the process of obtaining the ISO certification. Our quality consciousness is not limited to manufacturing. Each of our manufacturing locations has a well-equipped R&D facility - which is Government of India approved - that's busy exploring newer eco-friendly chemistries for crop care and effective formulations technologies and recipes. This helps us to serve the changing needs of our demanding customers in cost-effective ways.

Excel Crop Care's Technical Actives, bulk and branded formulations are presently registered and marketed in Asia Pacific, South Asia, West Asia, Africa, Europe (West & East including CIS countries) Central & South America and the USA.Our exports presently account for about 25 % of the turnover, but will play a more significant role in the company's business in the coming years. Besides the necessary infrastructure at the plants, we have a subsidiary in Antwerp, Belgium manned by professionals who perfectly understand the requirements and specialties of customers in that part of the world. Herewe also stock key products to reduce transit time and meet urgent customer needs.To become a truly global company, we plan to strengthen our stewardship role in promoting molecules where we have core competencies.Initially, we intend gaining market access in countries that have crops, climatic conditions and size of land holdings similar to India. For this, we are joining hands with companies across the world that offer complementary skills, products and services. Pooling resources and knowledge base will speed up market access and build a firm stronghold in these countries. In return we will offer our marketing and distribution strengths and our knowledge base in India.


  1. dear rajeevji

    why is the promoter holding so less in EXCEL CROP.

  2. Dear rajeev ji

    I agree with you that it is fundamentally a very strong stock with reserves of 140 crores and book value of 143 Rs. per share but my only concern is that market doesn't give high PE to this sector(generally 6-7) On what basis this stock will get rerated.

  3. Amit,
    One or other time sector gets rerated.
    Tell me what is the P/E of United Phosphorus?

  4. Rajeev Ji

    It is 16-17. But we also need to take into consideration that UPhos is a market leader, I am not denying the fact that this stock can be a good story but how visible the growth is, Anyways I have been tracking this stock for quiet some time but never got convinced to buy but yesterday I bought some, any idea why the promoter holding is so less.

  5. Dear Amit,
    Buying and selling is totally under ones perview.I just write my view.Promoters stake low etc is taken in account by whom wants to buy.United Phosphorus has also low promo stake.....it is always not counted.........Buy or sell is on all one discretion.....
    I am actually not here to convince anybody that BUY THIS STOCK....




  7. Dear Rajeev Ji,
    You already gave the call of excel crop when it is near 110. On taht day I hear the speech from Pranab Mukerjee that they are telling institutional investor to invest in agri sector.I immediately buy it for long term.
    Rajeev ji what is your view on JPT securities , it is on your suggestion I looked into it and I found that it is nikhil ghandhi group company, who is the promotor of SKIL , Pipav shipyard and their is some story in this stock.

  8. Thincktank,
    See these are stories.Any stock when u buy which is in Cash gr, they are most probably,growing co.There are plans and growth but no guarentee that they will prosper.
    So always keep in mind that Cash gr stocks are still to grow and the management can fail in their attempt.

  9. Rajeev Ji

    I appreciate your point and its solely the investor's decision to take a buy or not. I do feel that you are doing a good job by providing stories with actual fundamental basis. May you get more blessings from small investors like us.Anything which can be a lifetime opportunity in next five years (One stock that can change whole life). Can you suggest something like that if not stock than a sector.

  10. yes me too would like to know a stock which can change my life

  11. Hi Rajeev,
    If you track VST Industries, need your opinion.Its the Hyderabad based cigarrette company which has CHARMINAR brand. Its total debt free company with no advertising costs and good fundamentals. I personally dont like ITC, as it as diworsified (as Peter Lynch says) into FMCG sector where it faces tough competition.
    Please spare some time and suggest.

  12. Vikas,
    I do not trcak VST so no view.

  13. Amit &k,
    I would loved to have such type of stocks so that I have also not to buy so many stocks.

  14. Hi Rajeev,

    You are doing a great work and I am your great admirer. Though I am posting for the first time but I read your blogs every day. Do you have any comments on MIC electronics?

  15. And if time permits, would like to hear your on IKF also.

  16. Rajeev Ji,

    What is the target of bharti for short term.just give your simple view


  17. Rajeev ji

    Do you track MARG Ltd. I feel its on verge of breakout. Could you comment?

  18. Varun,
    I do not track Mic Electronics so no view.
    IKF Techno is a story coming up..let us see how it pans out..it is all about Jathropa planting and making bio deisel from it....

  19. Thnicktank,
    No view on Bharti as I do not track large caps.....

  20. Amit,
    Marg was first recomended by me when it was just Rs 50.....it is already 3 times up from my call....I am a non technical guy so can't say on breakout....

  21. dear rajeevbhai whats ur view on MARG now.

  22. hi Rajeev

    Hv been offlate reading your blogs and already fallen in love with them and ofcourse you.

    I feel it would be a great idea if emphasis is given on numbers that the company is expected to come out with in next 2 /3/5 years as well alongwith the research.

    This would make the recomendations more stronger.

    btw Where's the market headed. any idea when a correction is in the offing?

    KK ( Kiran Khair)

  23. Kiran,
    If you have gone through my old posting , I think just couple of week or a week back , then I have written that forget big correction of say 3000-4000 points.1000-1500 points is always there but not 3000-4000 points.
    I have already predicted in Jan/Mar and even before that,that we can even see 21k crossing by Dec 2009 and may even see 31k by Dec 2010.I think both have a very high probability of getting achieved...........
    The take here is buy which one feel is still having great valuation.
    I am going to give a try to write stocks which still have potential to give great returns....am not sure when I will be able to do....
    But try to get a hint from what I write in reply....they are worth taking note of....when I use to write at mmb I use to write same thing...try to get hint(buy recomendation)from my reply....
    Let me write it again, I only write when I feel like writing. I don't write just for the sake of writing.
    Moreover when I write here I know many followers are eager to read what I write and hence I have certain responsibilty which I have to fulfill....and when one writes he needs to be in mood to write something....something should pop up in ones mind then only one can write otherwise, it becomes Bakwas...
    Remember to read each and every line of what I write.Try to read the finer lines what I am trying to convey.....

  24. Rajeev Ji

    Shall we take position in this stock or wait for some correction to happen and then enter at 100 levels.


  25. Amit,
    It is difficult for me to say that.It all depends upon you.You needs to decide when u wants to buy.
    But I think , coming back to 100 level or below that chances are very low.....