Investing Idea Nikhil Gangil

SEBI registered Research Analyst

Value Investor, IIT madras Alumnus

http://intrinsicvalueequity.in/ 1
 Nikhil Gangil is SEBI registered as Research analyst registration no
INH000009047
Stocks Discussed on Public platforms may or may not be a part of
Intrinsic Value recommended stocks.
All the case studies shown in the presentation will be purely for study
Disclaimer purpose.
Our view may be biased due to our investing style.
Data shown in the presentation is extracted from various websites
including company website and analyzed, we do not guarantee of
accuracy of Data.
Views and concepts presented in this presentation are my own and do
not represent any Organization.

http://intrinsicvalueequity.in/ 2
 Strategy-

- A company with great financial history

- 7-10 years history in the market. Intrinsic Value
- Presently under-valued.
- Valuation Trigger Quality Potential multibagger
- External Trigger
- As a cyclical investor, we don’t wait for
financials to get better

- External Triggers
- Valuation Trigger Valuation Trigger Promoter holding increase
Min intrinsic Value Capex
Max intrinsic Value Corporate action trigger
Removal of Bottle neck
http://intrinsicvalueequity.in/ 3
About
Rallis India, a Tata Group company Group Co., has a history of over 150 years. The company is into manufacturing of Agrochemicals and is
present across the value chain of agriculture inputs - from seeds to organic plant growth nutrients. Rallis is also in the business of contract
manufacturing for global corporations.
Business Segments
The business is divided into 2 segments:
1. Crop Care Segment (80% of revenue in FY23)
A. Crop Protection
a. Range of insecticides, fungicides, and herbicides, It covers 80% of India with its presence.
b. International business: The company is engaged in the marketing of own-manufactured technical-grade crop protection chemicals as well as
branded formulations and is also into contract manufacturing.
B. Crop Nutrition
a. Soil Conditioners (Geo-Green)
b. Plant Growth Nutrients and Micronutrients
c. Foliar Application and Fertigation Crop Nutrients
This segment has grown 20% in last 3 yrs.

2. Seeds Segment (12% of revenue in FY23)

Seed Division is focused on developing traits and technologies for crop protection & improved productivity.
Seed Division also provides customized research to select global Ag-biotech businesses.
http://intrinsicvalueequity.in/ 4
Key Facts – Manufacturing Facilities The Co. has four manufacturing
Dealers - 6000 facilities of which two are located in Gujrat and two in
Retail Distributors - 70,000 Maharashtra.
Depots - 21
Regional Office - 4 Facility - Production Volume
Employees - 473 Akola - 11,375 MT
Ankleshwar - 7,834 MT
Crop protection Revenue breakup Lote - 5,682 MT
Fungicide: 35% Dahej -5,538 MT
Herbicide: 19% Third-Party Manufacturing - 5,470 MT
Insecticides: 46%
Geographical presence
Geographical diversification Rallis reaches 80% of districts in India Provides agricultural
Domestic: 67% solutions to more than 5 Million farmers and exports its
International: 33% products to 70 locations.
The Average plant utilization stood at 88% in FY22

http://intrinsicvalueequity.in/ 5
Business

http://intrinsicvalueequity.in/ 6
Financials

http://intrinsicvalueequity.in/ 7
Financial Trends

10 Year Sales growth- 8%

10 Year ROCE – 19%

10 year Net worth Growth- 10%

http://intrinsicvalueequity.in/ 8
Peer comparison

http://intrinsicvalueequity.in/ 9
Valuations -

Min Intrinsic Value- 186

CMP- 253
Max intrinsic Value ~ 622

http://intrinsicvalueequity.in/ 10
Risks
- Undervaluation can continue for next year also
- All the calculation is based on current financials, as financials change, min and max intrinsic value will also change.
- Agrichem is not a hot Sector right now and it can continue.
- You should be ok with a 2-5 year Horizon in this.

http://intrinsicvalueequity.in/ 11
For any doubts- connect here
• Twitter • Website-
https://twitter.com/Intrinsic_cycle https://intrinsicvalueequity.in/

• Email-
info@intrinsicvalueequity.in

• Telegram- t.me/intrinsicvalue

http://intrinsicvalueequity.in/ 12