Subscribe to India Pesticides: Prabhudas Lilladher


Prabhudas Lilladher has attain out with its document on India Pesticides. The learn agency has urged to ''Subscribe'' the IPO in its learn document as on June 22, 2021.

Broker Analysis

June 23, 2021 / 12: 17 PM IST

Prabhudas Lilladher IPO document on India Pesticides

We imply subscribe to India Pesticides Cramped (IPL), a distinct segment play in manufacturing of pesticides technical (79% of rev) and components (21%). Our clear stance emanates from 1) it is the one real producer of 5 technical in India and leading producer of clear molecules address Captan, Folpet and Thiocarbamate herbicide and a pair of) none of its technical molecules are categorized under “Red triangle”. IPL reported a topline/EBITDA/PAT CAGR of 38%/67%/75% over FY19-21. we rely on enhance momentum to preserve led by 1) 6-8 molecules to be commercialized at its new 10000 MTPA capability growth (commencement of manufacturing in FY22E; 38% of existing capability) and a pair of) Greenfield growth at a new situation for which IPL is currently in discussion with UP executive to develop land.


Valuation and Outlook

At higher discontinuance designate band of Rs 290-296, the gap comes at an indicative rough estimate P/E multiple of 17.1x FY23E EPS of Rs 17.3. On TTM foundation, the gap is priced at 24.7x FY21 earnings which is at median valuation when put next with its listed peers i.e. Rallis (@30x FY21 earnings), Heranba Inds (@ 18.5x FY21 earnings) and Astec Lifescience (@ 40.9x FY21 earnings). Hence, we imply investors to ‘SUBSCRIBE’ to the gap.


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