Greetings and welcome to my you tube channel. Today we will discuss the prospects of Insecticides India Limited The company deals with various agrochemicals, pesticides and herbicides One reason for our bullishness is stemming from this government’s stated objective and efforts to double farmer’s income in the next 5 years To double farmer’s income, agricultural output has to substantially increase and for this purpose use of agrochemicals, pesticides etc has to increase significantly Hence this industry is growing at a rapid pace and likely to continue doing so The market leader in this industry is UPL which has delivered strong returns to the investors in the past However we like Insecticides as it is quoting at a substantial discount to UPL The company is regularly improving its product mix and thereby improving its margin Besides domestic market which is growing at a rapid rate the company is also establishing itself in the export market Exports are also helping the company balance the currency risk as many raw materials are imported Company is also undergoing backward integration and manufacturing many raw materials in house So I feel the way this company is expanding its range of products, going for backward integration, exploring the export market and increasing turnover, its future looks bright Future of this industry looks bright as at least in the foreseeable future all governments will need to focus on increasing rural incomes Hence both the industry and the company’s future remains bright Company’s financials are also robust and the near term growth prospects are promising Company’s EPS is likely to rise 75 by FY21 Now when the EPS of 75 is discounted by the average industry benchmark, we arrive at a target of 975 which is where it was quoting sometime back Share price has come down due to a general mid cap sell off in the market as well as some products of the company getting banned recently However the current price of Rs 650 presents a very good buying opportunity with the target of 975 representing an upside potential of 50% Hence this is a good quality mid cap investment idea Moreover the management has a good track record of governance and investor friendliness. Company’s debt is also at a very reasonable level This is a good investment idea and I recommend investors to buy at the current levels. I am sanguine that this level the stock can return upwards of 50% in the next 1 year or so Thanks for watching my you tube channel