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Apr 25, 2010

Aries Agro 532935

 

 

Name of Company

Aries Agro

BSE Code

532935

NSE Code

 

ICICI Code

Established

1969

My Take

Like

Headquarters

Promoters

Mirchandani

Story

Started manufacturing feed additives for bids and animals. Later added Chelated micronutrients. It plans to acquire a stake in middle east based water soluble fertilizer manufacturer. Taken to mobile marketing to boost sales. Also markets using vans in unserviced areas.

Sector

Fertilizers

Sub-sector

Agri chemicals (micro-nutrients)

Website

http://www.ariesagro.com/

Positives

Not in subsidized/price controlled commodity NPK fertilizers like DAP, Urea, SOP. All its products have a unique niche. It also concentrates on Chelates where the profitability is high. Manufacturing units in Hyderabad, Ahmedabad, Mumbai, Lucknow, Kolkata and Bangalore, Sharajah and UAE. Surely a better bet compared to Shiva fertilizers. Buy more at <10PE. 52% promoter holding.

Negatives

At 122, P/E is at 13 which is slightly on the higher side compared to other fertilizer companies of this size. Rasthirya chem. Is trading at 22PE and tata chemicals at 15PE.

Peers

Chambal, Coromandel, Nagarjuna, GSFC,

 

1 comment:

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