Aries Agro Ltd
(BSE Code: 532935) (CMP: Rs.115.65) (FV: Rs.10)
Incorporated in 1969, Mumbai based Aries Agro Ltd (AAL) together with its subsidiaries manufactures and supplies micronutrients and other customized nutritional products for plants and animals. Its products include EDTA (Ethylene Diamine Tetra Acetic acid) chelates, amino acid chelates, soluble and sulphur based fertilizers, pesticides, fisheries and animal nutrition, crop management products and plant nutrients. It also deals in veterinary products. Its distribution channel comprises over 6,400 distributors and a direct retail touch point of more than 86,000 dealers. Its retail outlets are spread across 27 states.
AAL has an equity capital of Rs.13 crore supported by reserves of Rs.169.9 crore. The promoters hold 52.66% of the equity capital, which leaves 47.34% stake with the investing public. Ace investors Vijay Kedia holds 3.07% and S. Shyam holds 2.62% stake in this company. With share book value of Rs.160.83, its P/BV ratio stands at just 0.72x.
For FY18, AAL reported 48% higher PAT of Rs.10.48 crore on higher sales of Rs.296.72 crore and an EPS of Rs.8.06. During Q1FY19, it reported 66% higher PAT of Rs.3.16 crore on sales of Rs.56.42 crore and an EPS of Rs.2.43. It paid 23% dividend for FY18.
Currently, the stock trades at a P/E of just 12.81x and is available at 60% discount to its 52-week high of Rs.290.15 recorded in October 2017. Based on its performance parameters, the stock looks quite attractive at the current level. Investors can buy this stock with a stop loss of Rs.100. On the upper side, it could zoom to Rs.160-175 in the medium-to-long term.