Insecticides (India) (NSEI:INSECTICID) - Share price, News & Analysis

Q: What is the Fair Price of INSECTICID when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

INSECTICID (₹861.1) is trading above our estimate of [[fair value]] (₹426.73)

INSECTICID fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

INSECTICID Stock Overview

Insecticides (India) Limited manufactures and sells agro chemicals, pesticides, and technical products for agriculture purposes in India and internationally.

Rewards

Price-To-Earnings ratio (15.8x) is below the Indian market (20.5x)

Earnings have grown 3% per year over the past 5 years

Risk Analysis

No risks detected for INSECTICID from our risk checks.

Insecticides (India) Competitors

Excel Industries

BSE:500650

₹15.2b

Heranba Industries

BSE:543266

₹22.0b

NACL Industries

BSE:524709

₹14.9b

Mangalore Chemicals & Fertilizers

BSE:530011

₹12.7b

Price History & Performance

Summary of all time highs, changes and price drops for Insecticides (India)
Historical stock prices
Current Share Price	₹861.10
52 Week High	₹888.80
52 Week Low	₹583.00
Beta	0.87
1 Month Change	10.03%
3 Month Change	37.03%
1 Year Change	18.25%
3 Year Change	32.46%
5 Year Change	30.56%
Change since IPO	2,982.70%

Shareholder Returns

	INSECTICID	IN Chemicals	IN Market
7D	3.5%	0.8%	1.7%
1Y	18.3%	-3.2%	0.1%

Return vs Industry: INSECTICID exceeded the Indian Chemicals industry which returned -2% over the past year.

Return vs Market: INSECTICID exceeded the Indian Market which returned 0.3% over the past year.

Price Volatility

Is INSECTICID's price volatile compared to industry and market?
INSECTICID volatility
INSECTICID Average Weekly Movement	5.2%
Chemicals Industry Average Movement	6.8%
Market Average Movement	7.0%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: INSECTICID is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: INSECTICID's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	1,272	Rajesh Aggarwal	https://www.insecticidesindia.com

Insecticides (India) Limited manufactures and sells agro chemicals, pesticides, and technical products for agriculture purposes in India and internationally. The company offers insecticides, herbicides, fungicides, and PGRs and bio fertilizers. It also provides household and biological products, and formulations.

Insecticides (India) Fundamentals Summary

How do Insecticides (India)'s earnings and revenue compare to its market cap?
INSECTICID fundamental statistics
Market Cap	₹16.99b
Earnings (TTM)	₹1.07b
Revenue (TTM)	₹15.04b

15.8x

P/E Ratio

1.1x

P/S Ratio

Is INSECTICID overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INSECTICID income statement (TTM)
Revenue	₹15.04b
Cost of Revenue	₹11.08b
Gross Profit	₹3.96b
Other Expenses	₹2.89b
Earnings	₹1.07b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	54.44
Gross Margin	26.36%
Net Profit Margin	7.14%
Debt/Equity Ratio	5.7%

How did INSECTICID perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is INSECTICID undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INSECTICID?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INSECTICID. This is calculated by dividing INSECTICID's market cap by their current preferred multiple.
What is INSECTICID's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹16.99b

INSECTICID key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	10.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does INSECTICID's PE Ratio compare to its peers?

INSECTICID PE Ratio vs Peers

The above table shows the PE ratio for INSECTICID vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14x
500650 Excel Industries	9.5x	n/a	₹15.2b
543266 Heranba Industries	11.6x	n/a	₹22.0b
524709 NACL Industries	20.3x	n/a	₹14.9b
530011 Mangalore Chemicals & Fertilizers	14.4x	n/a	₹12.7b
INSECTICID Insecticides (India)	15.8x	n/a	₹17.0b

Forward PE

Price-To-Earnings vs Peers: INSECTICID is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does INSECTICID's PE Ratio compare vs other companies in the IN Chemicals Industry?

Price-To-Earnings vs Industry: INSECTICID is good value based on its Price-To-Earnings Ratio (15.8x) compared to the Indian Chemicals industry average (17x)

Price to Earnings Ratio vs Fair Ratio

What is INSECTICID's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INSECTICID PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate INSECTICID's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of INSECTICID when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INSECTICID (₹861.1) is trading above our estimate of fair value (₹426.73)

Significantly Below Fair Value: INSECTICID is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INSECTICID's PEG Ratio to determine if it is good value.

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Future Growth

How is Insecticides (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.4%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Insecticides (India) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Insecticides (India)'s track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Insecticides (India) competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Insecticides (India) performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INSECTICID has high quality earnings.

Growing Profit Margin: INSECTICID's current net profit margins (7.1%) are higher than last year (6.6%).

Past Earnings Growth Analysis

Earnings Trend: INSECTICID's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: INSECTICID's earnings growth over the past year (14.4%) exceeds its 5-year average (3% per year).

Earnings vs Industry: INSECTICID earnings growth over the past year (14.4%) underperformed the Chemicals industry 29.6%.

Return on Equity

High ROE: INSECTICID's Return on Equity (12.4%) is considered low.

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Financial Health

How is Insecticides (India)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INSECTICID's short term assets (₹10.0B) exceed its short term liabilities (₹5.1B).

Long Term Liabilities: INSECTICID's short term assets (₹10.0B) exceed its long term liabilities (₹188.0M).

Debt to Equity History and Analysis

Debt Level: INSECTICID's net debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: INSECTICID's debt to equity ratio has reduced from 50.8% to 5.7% over the past 5 years.

Debt Coverage: INSECTICID's debt is well covered by operating cash flow (273%).

Interest Coverage: INSECTICID's interest payments on its debt are well covered by EBIT (21.6x coverage).

Balance Sheet

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Dividend

What is Insecticides (India) current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INSECTICID's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: INSECTICID's dividend (0.35%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).

Stability and Growth of Payments

Stable Dividend: INSECTICID's dividend payments have been volatile in the past 10 years.

Growing Dividend: INSECTICID's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.5%), INSECTICID's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.8%), INSECTICID's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

15.6yrs

Average management tenure

CEO

Rajesh Aggarwal (51 yo)

no data

Tenure

₹39,646,000

Compensation

Mr. Rajesh Aggarwal, B.Com. has been Managing Director of Insecticides (India) Limited since November 22, 2006 and serves as its Chief Executive Officer. Mr. Aggarwal joined Insecticides India Limited in 1...

CEO Compensation Analysis

Compensation vs Market: Rajesh's total compensation ($USD502.01K) is above average for companies of similar size in the Indian market ($USD194.89K).

Compensation vs Earnings: Rajesh's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: INSECTICID's management team is seasoned and experienced (15.6 years average tenure).

Board Members

Experienced Board: INSECTICID's board of directors are considered experienced (9.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31