Second Check : Aimco Pesticides

Happy Onam Wishes to all my readers!

I have received few mails asking about some of VP’s recently recommended picks, but which are not included in my portfolio. First let me make it clear, in my portfolio, I am giving privileges to VP REPEATED picks (Which is almost 15 % of his total discussed ones). The performance of VP repeated picks is given here upto May 2014. An updated one, till Sep 2014, will be published soon. So, I will be adding very few of VP picks to my portfolio (if it’s a life time opportunity or tempting valuation) since my restriction to keep very limited number of shares in MVPP as 12 – 24 companies.

Even though, I would like to give a second analysis, of the recommendations given by VP, for a second check.

This time our Great VPji handpicked a great opportunity candidate for future. The major question is whether the company will deliver this time. We are not going to repeat whatever given in VP blog, but trying to analyze some other parts and aspects.

10+ Year Price Chart

Promoter’s Share Holding  :

	Jun-2014	Mar-2014	Dec-2013	Sep-2013	Jun-2013
Promoter and Promoter Group	52.66%	52.38%	51.40%	51.38%	50.52%

Valuation & Dividend Yield

TTM EPS : Rs 1.82/-

TTM PE @ Rs 45/- = 24.7

Dividend Yield = Nil

Pros

1. Growth oriented field of business
2. Tiny market cap of 40 odd Crores
3. Experienced co-promoters ( Excel Cropcare)
4. Promoters Market Purchase

Cons

     1.  Above Comfort zone valuation

2. In consistent sales in previous years
3. Retail investors holding more than 30 %

Category of Shareholder	No. of Shareholders	Total No. of Shares	Total No. of Shares held in Dematerialized Form	Total Shareholding as a % of Total No. of Shares
Individual shareholders holding nominal share capital up to Rs. 1 lakh	9945	2866215	1731770	31.03

Rating

Business Outlook	*******	( 7 / 10 )
Scalability	*******	( 7 / 10 )
Promoters Quality	******	( 6 / 10 )
Valuation	**	( 2 / 10 )
Overall	*****1/2	( 5.5 / 10 )

Buying Strategy

It has run a lot in recent times, and a possibility for a mild correction cannot be ruled out.

So, if we have fund of Rs. 10000/- in to invest in this company better to it in 3 phases.

Phase 1 : Purchase for Rs. 3000 (30%) at CMP

Phase 2 : Purchase for Rs. 3000 at around 32 – 35, if it comes.

Phase 3: Watch for the coming two quarters performance, and if it is inline with our expectation complete the purchase process (with 40 to 70 % remaining cash) and lock it!