Sharda Cropchem taking support

2022년 2월 15일

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss/(Buy Price-Initial Stop Loss Price)
4. First sell on initial stop loss hit or close below supertrend

After a quarterly sales growth of 78% and quarterly profit growth of 111%, SHARDACROP gave a big volume breakout and came down with the market crash. It's now taking support near its previous resistance. If the bounce back continues it will be a good buy with a stop just below Rs.500.

Other fundamentals: -
1. Last 3, 5, 7 and 10 year average ROE greater than 15%

2. 10 year CAGR sales growth of 18% and CAGR profit growth of 20%

3. TTM sales growth of 48% and profit growth of 29%

4. Debt to equity at 0.02, Interest coverage at 183%

5. PE of 16 is less than 10 year average PE of 18

6. Rise in registrations; strong pipeline: -
Globally the company continues to focus on identifying generic molecules going off-patent and seeking registrations, strengthening its range of formulations and generic active ingredients across Europe, NAFTA, LATAM and the Rest of the World.

The company is not looking for innovative products as it requires capital, time and resources primarily towards R&D. Being a generics agrochemical company, Sharda is able to proceed directly with the preparation of dossiers and seeking registrations after identifying opportunities in generic (offpatent) molecules and corresponding formulations and generic active ingredients.

On 30th Sep’21, it owned more than 2,324 registrations for formulations (89%) and 286 for generic active ingredients (11%) across Europe, NAFTA,
Latin America and the RoW. Besides, it has filed 1,054 applications for registrations.

7. Unique business model: -
Its unusual business model in crop protection involves identifying off-patent generic molecules (or those soon going off patent), applying for and
registering them in markets where demand is strong. During the identification process, it assesses margins, local competition and demand,
then begins the processes for registration. It has consultants who identify particular molecules and formulations. It does not manufactures any molecules. Formulations are procured primarily from China and India.

8. Intangible asset growth: -
Since Mar' 15 intangible assets increased continuously from 0 to 688.

2022년 2월 23일

Note

Sharda Cropchem is fighting hard at the buy zone. This is an opportunity to buy this great company.

2022년 4월 8일

Note

Sharda Cropchem is going to close the week above previous resistance of rupees 673. More positions can be added here.