Excel Crop Care Ltd. share price target

With this acquisition, Excel crop would benefit in near term as global players are looking at India to increase their market share, add to their product portfolio, and strengthen their supply base in specialty and agrochemicals. Additionally, as a part of the strategic direction, it has decided to focus on speciality chemicals, pharma intermediates, pharma actives, performance chemicals and environment and biotech products as a primary focus for its future activities. Combining of ECCL's strong manufacturing capabilities along with SCC's world class research capabilities will take the company to greater heights. In addition to the company, Indian farmers will also stand benefited due to access to world renowned technologies and products and would lead...

Excel Crop Care has seen a contraction of 185 bps in gross margins for Q4FY15. This along with increase in employee expenses and low volumes led to a contraction in EBITDA margins by 140 bps. Significant increase in interest expenses is because of a significant jump in net working capital days. The results are below our expectations in terms of Net Working Capital days and margin erosion.