India Pesticides Ltd
Hi @Denny_David ,
Generally I look for a businesses that are going through headwinds, that are temporary.
India pesticides fits into that criteria.
actually 80% of Agrochem sector is fitting into this criteria currently 
- Managements molecule selection is really good
- They go for molecules which has no or limited competition in India
- Present in entire value chain (Intermediates—>Technicals—>Formulation) where focus is mostly on technicals, they are also open to contract manufacturing.
- That is the reason they are able to make high gross margins and OPM’s.
- whenever sector go into good times, they can easily double their revenues with present manufacturing capacity, and in next few years doing really big capex.
If I boil down everything I’m getting great business and great management at reasonable price.
Risks :
- inventory destocking might not be over
- China is dumping at low cost worldwide
- many Indian Ag-Chem players recently done or doing large capex’s (This includes for some of companies key products)
I don’t know when the good days will come, may be in 1 yr or 2 yr, but I’m willing to wait.
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