Anil Ltd (BUY)

Anil Limited is the Flagship Company of ANIL Group. Anil Limited as a pioneer in the Corn Wet Milling business has more than 70 years of experience, which has led to development of products that cater across various industries, including Textile, Paper, Food & Beverages, Pharmaceuticals and Chemicals.

The range of products that Anil Limited manufactures is Native Starch, Chemical Starch, Modified Starches, Dextrins, Dextrose Monohydrate, Liquid Glucose, Corn Syrup, and Sorbitol. Anil Limited has a large range of modified starches that caters to various applications in these industries. The core strengths of Anil Limited is its relentless pursuit of innovation and research and development capabilities coupled with a keen sense of understanding the ever changing needs of its customers

 

  Products:

•  Native Starch (Corn Starch)
• Food Grade Starch
• Pharma Grade Starch
• Modified Starch
• Dextrins
• Liquid Glucose (Corn Syrup)
• Dextrose Monohydrate
• Glucose Anhydrous
• Corn Gluten Meal

Anil Limited caters to requirements of end-user industries, which include:

• Textile : Basic Starch is of paramount importance in the areas of sizing, finishing and printing. Modified Starch is also used a printing thickener.
• Food & Beverages : Basic Starch is basically used for thickening sauces, pudding & gravies. It is also used in bakeries and for preparing ice cream cones.
• Paper : Starch is widely used in surface sizing to enhance appearance and has the ability to increase paper strengths and stiffness.
• Pharmaceuticals : Starch is used in tablet coating and drug formulation. Liquid Glucose is an essential ingredient in manufacture of variety of syrups, antacid suspensions and other mixtures as it has a unique property of balanced sweetness.
• Animal Feeds : By-products is useful in cattle and poultry feeds as it activates weight increase in animals and table birds. Gluten (by-product) is a rich source of protein and is used in poultry feed as it contains 65% protein.

 

Stock Data

CMP Rs. 270.00

BSE- 532910

2W Avg. Vol.10,000

 

Year end	Mar 11	Mar 10	Mar 09	Mar 08	Mar 07
Net sales	521.11	383.77	287.32	239.25	215.26
Operating profit	88.59	52.44	30.07	25.90	18.86
Net profit	40.25	23.99	10.51	7.24	5.48
Equity cap pd	9.77	9.77	7.40	7.40	7.40

 

	Quarter ended			Year to Date			Year ended
	201112 (3)	201012 (3)	% Var	201112 (9)	201012 (9)	%Var	201103 (12)	201003 (12)	% Var
Sales	155.38	132.48	17.29	441.17	356.35	23.80	504.08	374.10	34.74
Other Income	0.31	0.36	-13.89	1.87	0.77	142.86	1.75	0.49	257.14
PBIDT	30.11	23.52	28.02	84.74	63.48	33.49	88.59	52.43	68.97
Interest	11.25	7.97	41.15	31.53	22.14	42.41	27.96	15.94	75.41
PBDT	18.86	15.55	21.29	53.21	41.34	28.71	60.63	36.49	66.16
Depreciation	2.68	1.53	75.16	7.27	4.59	58.39	6.44	5.19	24.08
PBT	16.18	14.02	15.41	45.94	36.75	25.01	54.19	31.30	73.13
TAX	3.24	2.85	13.68	9.35	7.70	21.43	10.77	6.00	79.50
PAT	12.14	11.25	7.91	35.33	29.17	21.12	40.25	24.00	67.71
Equity	9.77	9.77	0.00	9.77	9.77	0.00	9.77	9.77	0.00

 

GROTH RATIOS (%)

NET SALES GR-34.74

EBITDA -72.75

NPM- 7.66

ROE -35.68

ROCE -23.64

PE -5.48

PBV- 1.6

DEBIT/EQUITY-2.09

 

KEY INFO

52 Week H/L Rs 349/ 190

Face Value Rs. 10

TTM EPS -   Rs 47.5

M. Cap (in Rs. Cr.) 265

Book Value     134.00

Dividend – 10

Shareholding Pattern (in %)

Promoter -68.85

FII   0.39

CORP BODIES    5.64

Public 25.06

price chart

Key Developments

Received approval to set-up Mega Food Park (MFP) project in Gujarat.

Anil Group has won the bid from the Union Ministry of Food Processing Industries (MoFPI), for developing Mega Food Park in Savli near Vadodara. As per the MoFPI rules, the company would submit a detailed project report (DPR) by August-end, based on which the ministry would review further procedures.

The said project will be in the form a special purpose vehicle (SPV) — a consortium of food-processing, logistics and infrastructure companies, in which Anil Ltd, will hold majority equity. The group will invest more than `200 Crs for the proposed food park and will develop the park spread in more than 250 acres area, offering space to more than 30 agro and food processing units. However the company clearly mentioned that the focus will be on Starch supply in the park.

The company had already acquired about 250 acres of land for the project and the project would be a landmark development creation of "farm-to-fork" infrastructure. The Food Park will comprising a central processing centre, around 7-8 primary food processing units, centre for excellence for research and development, quality control and application labs where vocational training would be given to the interested candidates on food processing and new techniques.

The mega food park will provide infrastructure facilities for food processing industries along the value chain from the farm to market
and will leverage Anil Ltd’s presence in corn wet milling, food processing, milk and dairy products and hospitality sectors, to integrate
different aspects of food processing and agri-business supply chain. These will result in increased realization for farmers by creating
rural processing infrastructure, reduction of wastage, capacity building of producers and processors and creation of efficient supply
chain.

We believe the presence and establishment of major players from food ingredients, processed food and food packaging industry in Mega Food Park will generate sustainable income for Anil Ltd in long term.

Currently 20-25% food produce in India is lost due to lack of processing facilities and inadequate infrastructure for post-harvest -
thus the food processing sector offers huge potential for investments across canning, dairy and food processing, specialty processing, packaging, frozen food / refrigeration and thermo processing.