Name of Company | Agro Tech Foods Ltd |
BSE Code | 500215 |
NSE Code | ATFL |
ICICI Code | |
Established | |
My Take | So-So |
Headquarters | Secundrabad |
Promoters | Some MNC – Not sure if it is linked to ConAgra. ITC has sold out big stake and is no longer the promoter. |
Story | Iconic brand Sundrop, which has very good market share as well as pricing power. Associate of ConAgra – so has licenses to sell ACT II and eventually for other brands. |
Sector | Foods |
Sub-sector | Sunflower oils, ACT II popcorn are main brands. |
Website | |
Positives | Rakesh Jhunjhunwala holds 8% along with Rekha Jhunjhunwala. Promoters now hold 48% stake, none pledged. NPMs have been consistently rising to over 3% from 0.5% in FY06. This is a zero debt company and as oil companies are low margin, zero debt help keeps the margin at 3-4%. |
Negatives | Oil businesses are low margin businesses. Revenue used to be higher in FY06 compared to FY10 (937 Cr compared to 652 Cr). |
Peers | |
News | |
Price @ blogged | 363.30(30-Dec-10) |
Cost of company | 885 Cr for a 25 Cr FY10 NP translates to 35 times. Other than over-hyped Rakesh’s investment, nothing explains this cost. Zero Debt and 126 Cr reserves also does not help valuations much. |
Dec 30, 2010
Agro Tech Foods Ltd - 500215
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in 3 years (dec 2013), this company has grown 1259 cr mcap at a 28.67 times trailing NP. though sales were almost flat, profit is at 44 Cr. company remains zero debt.
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