Insecticides (India) Ltd. share price target

We interacted with the management (Mr. Rajesh Agarwal, MD) of Insecticides India Ltd (IIL) on 11th February 2025. Insecticides India Ltd (IIL) is recognised as one of India's fastest-growing agrochemical companies, specialising in crop protection and nutrition.

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates.

Insecticides India reported strong set of numbers in Q3FY23 led by (1) 53% growth in B2C sales and 30% higher revenues of Maharatna products, (2) higher B2C sales and Maharatna revenues led to gross and EBITDA margin expansion of 40bps and 60bps, respectively YoY and (3) the company is on track to commence the new production
units at Rajasthan and Gujarat in Q4FY23.

Insecticides India has reported robust revenue growth of 31.1% YoY in Q2FY23, led by strong growth in branded products, rising acceptance of new products and market share gains.

Insecticides India reported strong revenue growth of 19.7% YoY in Q1FY23, led by strong growth across geographies and market share gains

commencement of new capacities and 4) backward integration projects. In the current scenario of buoyant stock markets, steep discount at which INST trades vis--vis its peers has only expanded. Even a marginal contraction in discount can lead to rerating of multiples. Maintain HOLD' with TP of Rs680 (Unchanged) based on 10x FY24E EPS. Decent show in challenging times: INST reported revenue/EBITDA/PAT growth of 5%/23%/36% YoY better than our estimates. B2C/ B2B/ exports contributed to...

We increase our EBITDA/PAT estimates by 8%/13% for FY22E and 3%/5% for FY23E to factor in higher business growth from new launches and better margin profile of inlicensing molecules. We roll over to FY23 earnings, increase the target multiple on the stock from 9x to 11x. Due to recent run-up in stock price, we downgrade the stock to ACCUMULATE (from Buy) with revise target price of Rs 817 (Previous 506) based on 11x FY23 EPS of Rs 74.3. In the current scenario of buoyant stock markets, the steep discount at...

We maintain reduce rating (TP- Rs 676) on CRIN due to capacity constraints in NPK and likely headwinds on the raw material side starting 4Q. We are positive on Urea companies given healthy volumes and significantly lower...

INST reported yet another quarter with subdued performance. Despite healthy topline growth of 14%, gross margins contracted by sharp 490 bps YoY (regardless of a weak base) due to inventory liquidation of Nuvan (banned from 1st Jan'21). The management is hopeful of business turnaround in the ensuing quarters driven by 1) its pipeline of new launches 2) commencement of new capacities and 3) backward integration projects. We increase our topline estimates by 5% for each FY21-23 but reduce our EBITDA/APAT...

INST reported yet another quarter with subdued performance. Topline decline of 9% (PLe 8%) was due to adverse weather situation across various states leading to lower sprays and higher sales return. INST did a commendable job with ~28% decline in receivables due to focus on cash sales and quick collections. The management is hopeful of recovery 2H onwards driven by its pipeline of new launches and commencement of new capacities. We lower our EBITDA/APAT estimates by 2%/3% for each of FY22E and FY23E to factor...

Insecticides India's sharp contraction of 690 bps in gross margin was driven by (a) raw material cost inflation (b) Scarcity in raw material supply of Maharatna products that deteriorated sales mix in favour of generic products (at 60% v/s 55% YoY) and (c) heightened competition in Nuvaan (to be banned on 31.12.20). The management expects margins to improve in Q2 as Maharatna sales are expected to pick up. FY21 looks like a challenging year for INST due to (a) significant reduction in sale of Thimet and Nuvan (FY20~Rs 1.7 bn; FY21E Rs 450 mn) (b) INST as well as its suppliers face pressure due to labour unavailability and logistics issues and (c) Challenges in the...

INST's outperformance vis--vis domestic industry continued in Q4FY19 with Change in Estimates | Target | Reco topline/EBITDA/PBT growth of 18%/55%/62% YoY, driven by new launches. Led by its strong product pipeline, this performance is expected to sustain...

Maintain BUY with a TP of Rs 960/sh (17x Sept-20 EPS). Insecticides Indias (INST) reported a healthy 2QFY19 performance amidst rupee depreciation and higher input costs (technicals). Sales/EBITDA/PAT grew by 10.0/24.4/18.9% YoY to Rs 4.5bn/Rs 692mn/Rs 430 mn respectively.

Maintain BUY with a TP of Rs 937/sh (17x Jun'20 EPS). Insecticides Indias (INST) 1QFY19 revenue was at Rs 3.1bn (up 2.3% YoY). Revenue growth was muted due to lower concentration of Generic products in the mix. Change in the product mix led to strong EBITDA margin of 17.4% (up 122 bps), and EBITDA coming in at Rs 556mn (up 10.0% YoY). PAT came in at Rs 340mn, with a higher tax rate of 29.3% (against 27.6% in 1QFY18).