(NSE CODE:
ARIES, BSE CODE: 532935) (CMP: Rs.115)
COMPANY PROFILE
It is a Mumbai based company, together
with its subsidiaries, manufactures and supplies micronutrients and other
customized nutritional products for plants and animals in India.
MANAGEMENT PROFILE
Company was
set up in 1969 by Dr. T. B. Mirchandani and Mrs. Bala Mirchandani. Their son Dr. Rahul Mirchandani
holds a Ph.D. in management studies, specializing in rural marketing and an MBA
from Australia. He is also a Chartered Financial Analyst and has been heading
the marketing operations of the company since 1999. Explaining the importance
of micronutrients, Dr. Rahul says, “There are 16 nutrients required by plants
of which 7 are micronutrients. Micronutrients are required in micro quantities
and are not micro in importance. In fact, they play an essential role in
balancing plant nutrition and increasing crop yields.Micronutrients have
specific functions in the crop cycle and cannot be substituted by any other
nutrients.”
PRODUCTS
The flagship brands of Aires include
micronutrients complexes of zinc (Chelamin), iron (Chelafer), copper
(Chelacop), manganese (Mn Chel), a combination of these nutrients in
predetermined proportions customized for 107 crop, soil and geographic
conditions (Agromin), and broad spectrum antibiotic for plants (Plantomycin).
“Aries micronutrients are customized to the needs of 107 crops, soil and
geographic conditions.
The company’s products include EDTA
chelates, amino acid chelates, soluble and sulphur based fertilizers,
pesticides, fisheries and animal nutrition, crop management products, other
plant nutrients, and secondary plant nutrients. It also deals in veterinary
products.
DISTRIBUTION NETWORK
Company has very wide distribution
network across the country. It operates along a distribution channel comprising
of about 6,400 + distributors and a direct retail touch point of more than
86,000 + dealers. Its reach extends to most of the major fertilizer consuming
districts of the country. Its retail outlets are spread over 27 states in
India.
FINANCIAL SNAPSHOT
It has an equity base of just Rs.13 crore
that is supported by reserves of around Rs.169.9 crore. The promoters hold 52.66%
stake. Ace investors Vijay Kedia holds
3.07% and S Shyam holds 2.62% stake in this company. Book value of the
company is Rs.160.83 and the price to book value ratio stands at just 0.70x.
During FY18, its PAT zoomed 49% to
Rs.10.48crore against Rs.7.04crore in FY17 on higher sales of Rs.296.72crore
fetching an EPS of Rs.8.06.
Company has posted good results for Q1FY19. For Q1FY19, its PAT soared 66.31% to Rs.3.16crore from Rs.1.9crore in Q1FY18 on sales of Rs.56.42crore fetching an EPS of Rs.2.43.
Company has posted good results for Q1FY19. For Q1FY19, its PAT soared 66.31% to Rs.3.16crore from Rs.1.9crore in Q1FY18 on sales of Rs.56.42crore fetching an EPS of Rs.2.43.
It is a regular dividend paying company and
has paid 23% dividend for FY18. Currently, the stock trades at a P/E of just 9.67
against industry P/E of 39.57
