Kilpest India 2021 Multibagger Analysis

In this article, we can explore the possibility of Kilpest India Ltd as a Multibagger 2021 Stock based on Value Investing principles. Kilpest India Limited is an agri-based company. The Company offers agrochemicals. The Company’s agriculture business also includes crop protection, public health products, bioproducts, micro-nutrients and mix fertilizers.

Website https://www.kilpest.com/
CMP290.05 INR
kilpest India Ltd multibageer

About Kilpest India Ltd

3B BlackBio Biotech (I) Ltd. a subsidiary company of Kilpest India Limited. It was awarded the ‘Outstanding Achievement Award’ in recognition of excellence in its R&D through technology by FMPCCI, Bhopal.

KILPEST INDIA LTD is India’s industry-leading Agri-based companies, established in the year 1972. Shri R.K. Dubey is the founder of this company. Kilpest India Ltd has now grown and is leading today in Central India and manufactures about 50 pesticide products, micro fertilizers, biofertilizers and biopesticides. They are also enlisted with Bombay Stock Exchange Ltd since 1996.

Kilpest India Ltd company possesses a well-equipped R&D laboratory duly approved and recognized by DSIR, Ministry of Science and Technology, Government of India. They also have an advanced instrumentation facility supported. Which is governed by an equally competent team of scientists and technicians lay down a strong R&D foundation. A clean and hygienic environment ensure the consistency and reliability of results.Also their Laboratory studies are planned, executed, observed, recorded, applied in small scale field and then tabulated.

About Product Brands

Kilpest has represented India in the field of agriculture business comprising of crop protection, public health products and bio-products and is now a respectable supplier to various Govt. organizations, such as Directorate General of Supplies & Transport, New Delhi, NAVY, Vishakapatnam/Mumbai, Food Corporation of India, Raipur/Bhopal/Lucknow/Mumbai/Jaipur, NTPC, Bilaspur, Directorate of Health Service, M.P/Maharashtra/AP, Directorate of General Of Health Organization, Gujarat/U.P, Directorate General of Health Services, MOH&FW (NVBDCP), Govt. of India, M/s Hindustan Latex Ltd, Noida, Director of Agriculture and Horticulture, M.P./Trivandrum, Central/Western Railway, Mumbai, Northern Railway, New Delhi etc. The company has a nationwide distribution network that has more than 2000 dealers.

The company’s products are manufactured to high International specifications with stringent quality control from raw material procurement to finished goods dispatch. The company’s manufacturing process is complemented with technical expertise and it has attained a high industry standard suited to customer needs on 23-7-2002. Kilpest has received accreditation of International standard ISO 9001-2000 certified company. The company has diversified manufacturing in the sector of micronutrients, bioproducts and plant growth regulators etc. The company is also exporting its products to Bangladesh and Afghanistan.

Warren Buffet, Value & Growth Checklist

Capitalization₹ 217 Crbce05 green e1587451073732
Sales Increasing past 3 YearYes, 22.9%
Profit Increasing past e Year Yes, 53.7%
Durable Competitive Advantage Yes bce05 green e1587451073732
PE Ratio2.29bce05 green e1587451073732
PB Ratio6.33 bce05 green e1587451073732
Debt Equity Ratio0.17%
Intrinsic Value Discount281.11 bce05 green e1587451073732
Promoter Holding & Increase  38.35% no change bce05 green e1587451073732
Multibagger Returns300-500% 5 Year bce05 green e1587451073732

Business and Industry Analysis

As the Covid-19 lockdowns began, and investors rushed for exits, Kilpest India’s stock held steady. It saw little erosion in value during March, and through April and May, there were more buyers than there were sellers on most days. 

3B BlackBio Biotech India Limited (Subsidiary) (50% of Consolidated revenue and 90% of profits)
is involved in the design, development, manufacturing, and commercialization of PCR-based Molecular Diagnostic kits, PCR Enzymes & PCR Reagents.

Kilpest (Crop Protection Segment) (50% Revenue)
Co makes crop protection chemicals which consist of Insecticides, Fungicides, Herbicides, Microfertilizers, Public Health, etc

kipest1
kipest1

Positives

  • COVID times grossing high in revenue & profit through Selling of PCR Test Kits
  • High Piotroski Score – Companies with strong financials
  • Rising Net Cash Flow and Cash from Operating activity
  • Company with high TTM EPS Growth
  • Good quarterly growth in the recent results
  • High Revenue and Profit Growth with High Return on Capital Deployed (ROCE) and Low PE ratio
  • High growth and High Return on Equity (ROE) with Low PE ratio
  • Effectively using Shareholders fund – Return on equity (ROE) improving since last 2 year
  • Efficient in managing Assets to generate Profits – ROA improving since last 2 year
  • Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
  • Company with Low Debt
  • The strong cash-generating ability from core business – Improving Cash Flow from operation for the last 2 years
  • A company able to generate Net Cash – Improving Net Cash Flow for the last 2 years
  • Annual Net Profits improving for the last 2 years
  • Book Value per share Improving for last 2 years
  • Company with Zero Promoter Pledge
  • Recent Results: Growth in Operating Profit with an increase in operating margins (YoY)

Negatives

  • Post Covid Era could reduce the Revenue & Profit inflows
  • Companies with growing costs YoY for long term projects
  • The decline in Net Profit with falling Profit Margin (QoQ)
  • Weak Momentum: Price below Short, Medium and Long Term Averages

SUMMARY

As per the R&D, this company is having Multibagger Potentials. However, this is not a Multibagger Recommendation. You should get paid Subscription to get the Real 500% Multibaggers. 3 Multibaggers immediately after payment.

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