Saturday, 12 August 2017

Agri-Tech (India) Ltd: Undervalued stock

Agri-Tech (India) Ltd: Undervalued stock

(NSE Code: AGRITECH, BSE Code: 537292) (CMP: Rs.60) (FV: Rs.10)


Agri-Tech (India) Ltd (Agritech) is a group company of the Aurangabad-based Nath Bio-Genes, which was demerged from Nath Seeds Ltd in 2004 to focus on agri sector activities. 


The Company’s value emerges from the following 3 verticals

1) Agri-Tech Holds holds 15.6 lacs shares of Nath Bio Genes valued at approx 51.5 cr.

2) Agri-Tech owns 500 acres Land bank near Paithan in district Aurangabad, the market value of which is Rs.110 crore (valued as per the recent sell transaction of 90 acres for Rs.20.4 crore by the company in Q4 FY16.

3) Agritech holds 66% stake in Paithan Mega Food Park Pvt Ltd (PMFP), along with 34% stake with Nath Bio-genes. Agritech’s valuation of PMFP works out to approximately Rs.70 crore



The project is supported by the Government of India (GoI) for the State of Maharashtra. Mega Food Park (MFP) is a concept and scheme developed by the Ministry of Food Processing Industries (MoFPI), Government of India with the objective of providing adequate infrastructure for food processing industry to enable fresh investments into the food processing and also enhance employment opportunities in rural areas. MFP to have a Central Processing Centre (CPC) supported by Common infrastructure and Primary Processing Centres (PPC) and collection centres. Facilities like warehousing, cold storage, etc. are expected to become operational in the next financial year.


Agri-tech India has equity capital of just Rs.5.94 crore supported by reserves of around Rs.41.95 crore.  Market Cap of the company is just 35.8 Cr, it becomes a serious re-rating candidate as the total valuation from the 3 verticals totals around Rs.230 crore while the Company’s market cap just Rs.35.8 crore and it is a debt-free company.



The promoters hold 46.3% of the equity capital, 17.7% stake is held by HNI’s and Corporates. Book Value of the company works out to be Rs 80.63 and trades at 0.75 Price/Book. In Q1FY18 it posted a profit of Rs 16.18 cr against loss of 14 lacs in Q1FY17. The profit is due to sale of land, so it is due to other income otherwise it would have posted loss.


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16 comments:

  1. Unknown12 August 2017 at 19:54

    Treasure share.
    worth buying

    ReplyDelete
  2. Pictures12 August 2017 at 20:25

    Promoter credentials?

    ReplyDelete
    Replies
    1. Fundamental Blasters12 August 2017 at 22:15

      It is a group company of Nath Bio Genes, which have given multibagger returns

      Delete
  3. Unknown12 August 2017 at 21:30

    Gud

    ReplyDelete
  4. My Own World.......In My Own Words19 August 2017 at 17:59

    Sir,

    Just interested to know if they do manufacture or sell any products? Or mostly a holding company only

    ReplyDelete
    Replies
    1. Fundamental Blasters19 August 2017 at 19:50

      Agritech holds 66% stake in Paithan Mega Food Park Pvt Ltd and owns 500 acres Land bank near Paithan in district Aurangabad

      Delete
  5. Venkatesh Kumar23 August 2017 at 15:05

    Very interesting and detailed analysis.. no matter what happens, there will be focus on food and the basic agricultural plays. Good find Sir!

    ReplyDelete
  6. rashmi chaudhary28 March 2018 at 15:36

    This comment has been removed by the author.

    ReplyDelete
  7. Clara Mellor14 August 2018 at 17:18

    This comment has been removed by a blog administrator.

    ReplyDelete
  8. Unknown29 August 2018 at 15:59

    what's the latest view on this stock.

    ReplyDelete
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