By, Team: Heretically Astute Members: Christy B Mathai George P Thomas College: IMT Ghaziabad
Contents
1 Market conditions 3
2 Company Overview 4
2.1 Agri Division : 4
2.2 Energy Division : 5
2.3 Future Outlook 5
3 Financial Analysis 6
3.1 Valuation Models 6
3.1.1 EPS Growth Valuation Model 6
3.1.2 Graham's Number Evaluation 6
3.1.3 P/E Ratio Valuation 6
3.2 Ratio Analysis 6
4 Conclusion: 9
1 Market conditions
Agriculture contributes 18% of India’s GDP and employs close to 50% of the Indian population. India is the second largest producer of rice in the world. The Department of Agriculture and Cooperation under the Ministry of Agriculture is responsible for the agriculture sector in India.
The agricultural GDP for the current fiscal is estimated to be 4.6% which is significantly higher than the 4% recorded in the last four years. The National Food security bill would scale up the demand for cereals to a great extent. The government recently allowed FDI of 100% in agriculture. This would help in achieving better efficiency in the production methods. Moreover, the current government is working towards improving the yields and technology used in production.
Increase in income levels and an expansion of organized retail in India has lead to a higher domestic consumption