Best Agro
CMP 1045
Well, we won’t be making any upside projection here as we are negatively biased against domestic generic marketing agro-chemicals companies.( we are least bothered about any upside movement in domestic agro-chemicals companies unless and untill they’re involved in exports of some niche AIs).
These domestic generic marketing agro-chemicals companies can only increase their business by either extending longer credit to channel partners or by giving higher margins as it is a very competitive space ( there are > 500 domestic genric marketing companies in agro-chemicals space.)
Some companies come with latest combinations ( 2 or 3 AIs combined together ) but again that is not a moat as farmers are already using these combinations by buying these moleclues separately and retailers are always pushing these combinations by pushing certain high-margin products with key AI brands. Sit a retialer shop for 5 minutes and you can get all these insights.
In short, we don;t like these kind domestic focused companies who don;t have any unique R & D ( and no one has) . We don;t think that these should be valued at > 5-6 PE in a bear market and 10-12 PE in bull market.
This company chart does not have much history do can’t say much but be careful of these red lines- if these are broken, the fall can be deeper.
Weekly Chart
Disclaimer :This post is just for learning few methods of price-patterns. Views are personal. No buy/sell recommendations. These are probability study methods and chances of success/failure depend upon various factors.
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