Aries agro

Aries Agro - Creating value for farmers & stake holders

Aries Agro having a Marketcap of Rs.153 crores is an Indian MNC that offers the widest range of products in the primary, secondary and micro-fertilizer sector ranging from individual elements to mixed speciality plant nutrient fertilizers.

Along with fertilizers, micronutrients are also gaining acceptance among Indian farmers. Moreover micronutrients are not subject to the regulatory constraints that fertilizers face.

Following factors that are destined to drive up the micronutrients business in our country and elsewhere:

• low yields of major food grains and horticultural crops
• high soil alkalinity
• and intensive cultivation

Aries has 65 branded products coming from six manufacturing units in India , one each at Mumbai, Kolkatta, Hyderabad , Bangalore ,Ahmedabad ,Lucknow and one new factory in UAE which is mainly for catering middle east region and North Africa

Company’s largest distribution network of 5500 distributors and 76500 (seventy six thousand five hundred) retail outlets across India is the main attraction for a rural centric business like this. In future company can easily roll out allied products throughout this network without much marketing efforts.

Aries has been doing quite well if we just have a look at the last 3 year fiscal numbers from FY2008-09 through FY2011 – total revenues were Rs.110 crs, Rs.139 crs and Rs.158 crores respectively and total profits were Rs.1.28 crs, Rs.11.14 crs and Rs.15.54 crores. Net Profit margings shot up from 7.97 per cent in FY10 to 9.83 per cent in FY11. ROE and ROCE stands at 13 and 15 per cent respectively. Company is moderately leveraged at 0.89 times.

Promotor’s have a 52.74 per cent stake in the company whereas the Institutional Investors have a 11.7 per cent stake in Aries. PE of Aries is 9.56.

Considering the above robust business model that is built around a thriving agricultural Indian economy, Aries looks good.