Aimco Pesticides Ltd. – A turnaround Agrochemical Wonder Brand

Aimco Pesticides Limited (Aimco) is a leading company in the field of Agrochemical manufacturing and formulation and is a major player in Insecticides, Fungicides and Herbicides, in India and now expanding its wings across the world. Aimco is a manufacturer of various technical grade pesticides, some of the key products being Chlorpyrifos [ Ethyl & Methyl],  Temephos, Cypermethrin, Permethrin, Hexaconazole, Glyphosate, Triclopyr & Fluroxypyr and a vast range of pesticide formulations, viz  liquids,  wettable powders , dusting powders , suspension concentrates and dry flowables. Aimco’s products are marketed under the brand name“AIMCO’’. Aimco is one of the leaders in Chlorpyrifos, Triclopyr & its formulations. The company has very good Backward integration and “AIMCO” is a reputed brand in the domestic market. Aimco’s has strong in-house R&D facilities at Lote-Parshuram are recognized by DST (Department of Science and Technology), Govt. of India, since 1996. Aimco is also a Government-recognized export house. Aimco spends close to 1% of its turnover on R&D. The company caters to both domestic and export markets and is continuously introducing new formulation in both these markets.

Background: This Company is more than 40yr old and is promoted by Mr. Pradeep Dave (and Excel Cropcare). He is respected personnel in the industry. He is on the technical committee and governing body of the Institute of Pesticide  Formulation Technology, President of the Pesticides Manufacturers & Formulators Association of India and also a Member on the governing body of CHEMTECH foundation. With these credentials it was disappointing to see the company getting into a debt trap and was referred to BIFR a couple of years back. According to the Insecticides Act 1968, the Government regulates manufacture, sale, usage, export and import of pesticides. No pesticide is allowed to be manufactured, exported or imported without registration. For export market registration takes around 3-5 yrs (along with huge amount of money) and for domestic market it takes around 1-3 yrs. Company took debt to finance these product registrations. This along with high employee cost, finance cost along with rising price of raw materials and cost of production were the main reasons for the poor performance and negative networth which ultimately led to BIFR.

Present and Future: Aimco was quick to bounce back – turning networth positive in a very short time and now after reducing its debt dramatically it is extremely focused on registering, orienting more products in its own brand name in exports market. It is developing new markets as well as concentrating more on Improvement of volume of its sales in current market so as to maximize sales. On account of new export registrations in the last few years, the company is expected to continue raking in moolah for the next few years, both on topline and bottom line. The promoters are conspicuous of a bright future as Promoters have been continuously increasing stake through creeping acquisition (52.66% till June Qtr end). Till last quarter 44% of their stake was pledged but starting this quarter there is no pledging of even a single promoter share. By the way one of their co-promoter is another listed giant Excel Cropcare . Excel cropcare had invested in Aimco in 2005 and bought shares at the price of Rs 24.5.

Financials: Sales have increased nearly 10 times from 14.96cr in 2009 to 140.22cr in 2014 and bottom line has turned around. For June 14 quarter sales have grown 38% YoY and profits have grown 800% from mere 0.23cr to 1.51cr. With an extremely comfortable debt to equity ratio along with the current market cap of just Rs 35cr and the market cap to sales ratio of just 0.25 times (compare this to its peers like Insecticides India, Bharat Rasayan etc that are trading at 1 times sales atleast, Rallis India at 3.5 times sales) there is a yawning gap in the valuations. Given the vast valuation gap and strong growth potential the stock could get strong re-rating in the near future.

Technicals: After more than 9.5 yrs of consolidation the stock is set to close above 40rs. This breakout would be a huge factor and the stock can go up multi-fold in next few years.

As with my other recommendations, this one is for people with high risk appetite

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123 Responses to Aimco Pesticides Ltd. – A turnaround Agrochemical Wonder Brand

  1. very_common_investor says:

    I am trying to buy AIMCO since this Monday and not able to BUY at all… now after your recommendation, it will be VERY difficult to buy but we all hope that there is great amount of VALUE it has so “buy price” should not be a concern at all…

  2. surpassed valuepickblogspot by couple of days 🙂

  3. Sameer Anand says:

    Thanks Ace for putting up in the morning.

    Its a commodotized business so valuations would always be lower. Besides the promoters may merge it with the bigger company (Excel Cropcare) at an unfavorable ratio.

    On a lighter note by the time the stock comes out of upper circuit, it would be fully valued!

    • why would you say its commodotized business and valuation w.r.t what it should be lower?

      • prabu says:

        Hi Ace, Thanks for your reco… But I am really frustrated by the fact that HDFC doesnt allow buying the shares.. What should I do now to catch this train.. Whether I need to open account with other broker.. Kindly suggest me some good brokers which will be helpful for all… Expecting ur valuable advise.

      • Prabu says:

        The shares are not even listed through HDFC broker for buying. They told like they are currently not allowing to invest in this shares..Very weird.. But true..Not sure how to buy the shares..

      • Prabu says:

        Thanks Ace.. If I am opening a new account with these brokers whether I will be able to transfer all my shares brought under HDFC to them..I am really frustrated… I called HDFC customer care and they told this share was blocked by their Internal risk team. Not saying the reason why they blocked this share. I need your help on which broker is better as I dont have knowledge on other brokers. Thanks, Prabu

      • Prabu says:

        Hmmm.. Do you own one of them ? Whether I will be able to move the shares from HDFC to either sharekhan or KR Choksey.

      • Ravi says:

        @prabu : I too have the same problem with HDFC and got a reply that they have suspended this company. I even contacted CS of Aimco and he too is not tightlipped. Looks like both company and brokers are amassing the shares and avoiding small investors.

        • actually company does not have any control over brokers. These big brokers have lot of “nakharas”. I have been through all this. I know its frustrating. I have never understood why on earth do these guys take a decision on behalf of us investors when it is our own money at stake, not theirs.

  4. Yella Reddy says:

    It is really funny .When Valuepick blogger given all details in advance and promised to disclose its name , you are posting it in advance to take credit !!

    • I came to know just 12 hours back (when some reader posted it) that some guy did post some details about guessing game. I do not follow other blogs especially the mentioned one. If you find it funny, good, then laugh. I follow my own conviction. You may or may not believe it. By the way it was also told that the name was not disclosed. Anyways, its up to you whether you want to accept it or not. If you are already invested, since you knew the name, then best of luck with your investment. May god bless us all.

  5. Sameer Anand says:

    Hi Ace,
    Just a request. Please provide the price level upto which the stocks you recommend should be purchased. I mean for example if Orient Beverages & Aimco keep on hitting circuits and appreciate 80-100 %, the original price recommendation would be irrelevant.

    • will try. By the way, for orient beverage even if you buy it at 120rs, it would be not even 20PE, and that too trailing. Others are trading at 40-50 PEs. Moreover, the earnings are going to jump in next 2 yrs. Do not get carried away with UCs. Do not think just because a stock has gone up 35-40%, it cannot go up 500% more. It can. Try to value the business and you might realize that the price you are paying is way less that what it deserves and thats what drives up the prices even further. Just an example (though i wish i do not have to disclose my personal trades), I bought liberty recently at 290 for my wife, which is double the price that i had recommended. Look at the value and not just the price that i had recommended. Ditto for Aimco. even 20-25% higher is ok. Do not worry if your time horizon is atleast a couple of years. You will make money. For any doubts, I am at your service. Best of luck with your investments.

  6. Sameer Anand says:

    Thanks Ace. Really appreciate it.

  7. Lincoln P Coelho says:

    The company is Aimco Pesticides

  8. Lincoln P Coelho says:

    Hi ace,
    Joined your blog today and am full of admiration. By way of feedback, the timer needs to be synchronized. I posted a msg. at 6.30 pm on Sep 3rd at Mumbai and the blog recorded it as 12.54 pm. Keep up the good work. We are loving it !

  9. deep275 says:

    Very interesting blog. Good work Sir. Do you track Vinyl chemicals


  10. Sameer Anand says:

    Lincoln P Coelho holds 1.08% in Aimco Pesticides.

  11. prabu says:

    Hi Ace What is the procedure to buy orient beverages as it is in Periodic call.. When we need to place the order exactly.. At what timings… Also it seems circuit has been reduced to 2%…

    • yes, circuit reduced, so people like us will get chance to buy stock at good valuations isnt it. I would advice you to talk to your broker directly about timings, but roughly its around 9:29-9:30, 10:14-10:15 then 45 mins interval thereafter.

  12. thakral says:

    sir v2retail chart is showing strength day by day….I think it will go beyond 30 within a week…wts ur view…

  13. thakral says:

    wts ur view on flex food & escort

  14. rangu4u says:

    Dear Aceinvestortrader,
    Can you please give your valuable views on Tanla Solutions, JBM Auto Component and Excel Industries?.
    Thanks in Advance.

  15. Sarvesh says:


    want to know about ISgec if its on your list..

  16. rahul says:

    Its amusing that you don’t follow value pick blog . I guess most of the people invest or want to make quick bucks follow his stocks .. He is now widely known in the investor community and he has given 3-5 ten baggers in a year .. And going by his past experience and excellent stock picking ideas you should read what he writes ..
    I also thought he was more of a speculator involved with fund managers..
    He talks like you ..somehow I dont know !!

    • actually, its a conscious decision, not to follow any blog. I cannot sleep if i buy a stock suggested by others. Borrowed conviction has never really worked for me. I am sure if he is followed by fund managers he must be a great stock picker, but I am fine with it 🙂

  17. very_common_investor says:

    Any inputs on country club and Shree Rama Newsprint?

  18. I do not follow any blog.

  19. rashmi says:

    hi ace investor,i am badlt stuck in jp ass,wats ur suggestion on it.also want to know ur views in avn ptl

  20. rashmi says:

    the bse code is 519105,plz check

  21. ravi multani says:

    hi ace what is ur view on manjushree tech

  22. Sameer Anand says:

    Hi Ace,
    There seems to be no end in sight for the upper circuits in Aimco & Orient!

    Also ICICI Direct didn’t accept order for 200 shares of Orient bevarages as it was below the minimum value of order.. Do you know whats the minimum value of orders for periodic call auction stocks?


    • My first order i remember was for around 350 shares and the price was much lower than today’s, so it should have accepted it. I hope the timing of the order was correct. I hope the order was of 200 and not for 20 by mistake.

    • deep275 says:

      I also faced similar problem with icici direct. I entered 2000 and they errored out “below the minimum value of order” and then I tried 1000 and it accepted.

      So as Ace says – It could be very well a timing issue rather than the minimum order issue.

  23. ravi multani says:

    thanks very much for ur reply
    why manjushree is falling…any bad news or only technical correction….should i enter now or wait for some more dip…

    • stock quadrupled in an year. Some bit of correction is healthy. Please take your own judgement of buying it. Its not my recommendation, but one of the better stocks in its industry.

  24. sukant says:

    Whats your view on bhel,essar oil,mm forging,polyplex

  25. Power says:

    Good evening ace
    Could you advice me on the following
    1. Jayant Agro
    2. Visakha ind
    3. RMCL

  26. Power says:

    Dear Ace
    Could you pls comment the reason to stay away from Jayant.
    Also on Visakha

  27. anjum vohra says:

    Dear Ace, ur valuable views on Wonderla & Kesar Terminals, please.

  28. Power says:

    thanks Ace

  29. thakral says:

    your view on escort..I thinks its a good investment bet…

  30. Sagar Saxena says:

    Hi aceinvestortrader,

    This seems like an excellent pick…especially the fact,that Revenues have grown 10-fold but the debt has reduced very significantly.However,seeing the quarterly nos. for FY14,one finds some serious lumpiness in their business.Q2,Q3 were very good,but Q4 turned out to be soft(loss-making!!) Is there high seasonality in their business? Most Agro cos. report sedate Q4/Q1 numbers…is that the case with this one too? And,what are the International markets targetted by Aimco? What is their competence in those markets?


    • US and EUrope. Some bit of Aust, and southern africa. By the way pesticides business is indeed seasonal.

      • Sagar Saxena says:

        So,we can expect some stability from exports in Q4 now! Should augur well on its re-rating drive.

        Thanks for bringing this one out in the open.The sector is attracting a lot of interest again,these days.Sharda IPO is another ‘trigger’

  31. Ravi says:

    Can you pls give your views on Switching Technologies Gunther, Shivalik Bimetal Controls, and Zenith Fibres ?

  32. Ranjan says:

    Hi Ace!

    thanks for your reco. Can you throw some light on Nectar life. Today it is in circuit. Is this better than kopran.

  33. Dear Aceinvestortrader
    Sir, Could you please advice or share your views on Radico Khaitan. I bought at 157/-. and severely burnt my fingers hoping that there will be open offer from Suntory. Also considering the entry barrier and the growing youngsters I thought this would help me to make some bucks. Hence I bought. But now I am stuck. Do I need to book losses and shift? pls help. thank you. Rashmi

    • do not like the company. Its your money so i cannot advise to book profit or loss. You should not buy a company on hope and definitely not at the kind of prices (in terms of PEG) that you have paid. One should have a reasonable degree of certainty of strong business growth and only then the stock prices appreciate.For one-off event, you should never buy a stock.

      • Yes Sir!! it was a mistake and I paid the price by losing hard earned money, time and mental agony. But now I want to rectify and move on. hence I sought your help. Is it worth to move to Kopran considering the revival of it business. I know it has doubled from the price u recommended. But don’t you believe it will go a long way. As you rightly pointed out it would turn out to be a multibagger if the management can turn everything right. Also your view on Sharon Bio Medicine please. thank you for helping small investors like me.

  34. sumesh says:

    hi pls tell ur opinion on ybrant digi

  35. Shadab Khan says:


  36. Shadab Khan says:

    sir i buy bhageria dyes & chemicals on bse, from that day it is lc, can u explain on thi stock

  37. Babu says:

    Dear Aceinvestortrader

    You last reco Aimco was amazing,you are really great.
    I am holding Ommetal Infra from a long time with a lot of conviction,but have not been able to make any money,would you advice exit or hold on this one.

    Thanks and Regards

  38. Prashant says:

    Dear Aceinvestortraderji,
    This is Prashant and today is my first day at your blog .
    I got your blog pointer from moneycontrol when followers of Yourself and Valupickji were fighting (I am sure not on behalf of both of you .)
    Thanks a lot for all the knowledge you are sharing with small investors who are benefitted immensely .

    I have request for followers of both you, please do not compare who found out stock first .
    The most important thing in stock market is money that we make . There are hundreds of stocks recommended by multiple peoples at various time frames .
    DHFL was recommended by many when it was around 220+ and RJ entered it at 160+ , does it really matters whose recommendation it was initially ?
    I will request followers please keep both blogs clean and none of them allowed you to fight, post messages on behalf of them .

    As on today everyone is running behind infra, auto ancillary, Home finance, consumption and infra stocks because they will be the beneficiaries of economic cycle.
    In such scenario it is definitely possible that multiple analysts can narrow down to same good stocks during same time frame .

    Request all boarders to benefit from knowledge shared by these two legends and do not question their integrity

    Respected Aceinvestortraderji,
    Wish you a belated teachers day, wish you learn a lot from you .

    Thanks & Regards,

    • There is no point in fighting. I hope people understand and use their energies in development of our country and their respective families. May god give them mental peace. I do not think i have any followers but negative energy is never useful. And pls do not call me legend, its strange and embarrassing 🙂 , really. Lets get back to making money.

  39. Jayaraman Pc says:

    what is your view on themis medicare

  40. Pramod Malav says:

    whats your view on “Makers Laboratories”

  41. Tarun says:

    Your view on Orient Bell Ceramics?

  42. deep275 says:

    Dear Aceinvestortrader, Do you track United Drilling tools.


  43. Tarun says:

    Look at Lawreshwar Polymers. Its been growing on Y-o-Y for last 5 years and in expansion mode. The promoters are buying aggressively in last few months.

    Can you please provide your feedback or comments..

    Thank you very much.

  44. Rishant says:

    Do you track Shreyas Shipping and OM Metals Infra?

  45. anuj says:

    Hi Ace,

    Can i enter Amico at these levels. It has doubled since your reco.


  46. harry says:


    good morning.

    how to know the new stock that you recommend. I mean, where can I find in you blog.

    Kindly guide



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