Indofil Industries Ltd Unlisted Shares

Are you looking for a value investment in India’s stable agrochemical sector? Indofil Industries Limited is a fully-integrated, multi-product chemical company and a proud part of the prestigious K.K. Modi Group. With a history dating back to 1962, Indofil has evolved into a global player in the manufacturing and marketing of agrochemicals and specialty chemicals.

A Legacy of Excellence:

• 1962: Incorporated as a subsidiary of Rohm and Haas Company, US.

• 2007: Became Indofil Organic Industries Limited.

• 2010: Rechristened as Indofil Industries Limited.

Today, Indofil is known for providing high-quality crop care solutions to farmers, helping them implement best practices in crop protection through strong R&D and a vast distribution network.

Global Quality & Recognition:
Indofil products meet international standards with accreditations like ISO 9001, OHSAS 18001, and ISO 14001. The company holds 8 patents and has invested heavily in innovation, with an R&D investment of ₹45 Crore in FY18-19 alone.

Massive Global Footprint:

• Present in 96+ Countries

• 100+ Product Brands

• 50% of Revenue comes from International Markets

Subsidiaries Driving Growth:
Indofil has established wholly-owned subsidiaries in key global markets to get closer to customers and enhance service:

• Indofil Industries (Netherlands) B.V. – Europe

• Indofil Bangladesh Industries Pvt. Ltd.

• Indofil Costa Rica S.A.

• Indofil Industries DO Brasil Ltda – The largest agrochemical market in the world

• Indofil Philippines, Inc.

Strategic Joint Venture:
To secure its supply chain, Indofil entered a Joint Venture with Shanghai Baijin Group, China, for manufacturing Carbon-Di-Sulphide (CS2). This backward integration ensures uninterrupted raw material supply and saves valuable foreign exchange.

Manufacturing Strength:

• Thane, Maharashtra: 20,000 TPA

• Dahej Unit 1, Gujarat: 31,000 TPA

• Synthesis Plant, Dahej Unit 2: 4,000 TPA

New Capacities Coming Online:

• EBDC Plant, Dahej: 35,000 TPA

• Innovative Solution Plant, Dahej: 35,000 TPA

Recent Financial Highlights (FY24):
Despite a challenging market, Indofil has shown remarkable financial discipline and growth:

• Revenue: Held steady at ₹3,118 Crore (vs ₹3,095 Cr in FY23), with 18% volume growth offset by pricing pressures.

• International Business Volume: Grew by an impressive 38%, with Brazil surging 65%.

• Gross Margin: Improved from 37% to 42% due to softening raw material prices.

• Profit After Tax (PAT): Soared by 45% to ₹332 Crore (from ₹241 Cr in FY23).

• Cash Flow: Generated a robust ₹426 Cr from operations, a huge turnaround from negative cash flow in FY23.

• Debt Reduction: Repaid ₹200 Cr in debt, showcasing strong financial health.

• EPS (Earnings Per Share): Stands at an impressive ₹155.

• Return on Equity (ROE): Healthy 8.5% .

Valuation – A Hidden Gem?
Currently, Indofil unlisted shares are available at ₹1,375 per share, giving it a market cap of ₹3,100 Cr and a P/E ratio of just 10x.

To put this in perspective:

• Rallis India (Tata Group) trades at a P/E of 47x.

• Bharat Rasayan Ltd trades at a P/E of 37x.

• The median P/E for top 10 listed agrochemical companies is over 40x.

Why is Indofil undervalued?
Two primary factors are currently suppressing the valuation, creating a potential opportunity for value investors:

1. Ongoing Legal Disputes: An internal family matter regarding asset division (including Indofil) between the Modi family members has created uncertainty, impacting investor sentiment.

2. No Immediate IPO Plans: A major exit route for unlisted investors is an IPO. The absence of immediate IPO plans limits liquidity expectations, keeping demand (and price) lower than listed peers.

The Opportunity:
For investors who understand the agrochemical sector and are willing to look past temporary governance overhangs, Indofil offers exposure to a globally diversified, debt-reducing, and profit-growing company at a fraction of the valuation of its listed competitors.

Ready to Add a Chemical Major to Your Portfolio?

Buy Unlisted Shares of Indofil Industries Ltd exclusively through Unlisted Network.

Invest in a company with a 60-year legacy, global operations, and significant growth potential.