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                                                   Chambal fertilizers and chemicals

About Company
1. The company is the largest private sector manufacturer of urea in India with an installed capacity of 1.73 million tonne
    per annum (MTPA).
2. The company is in joint venture with IMACID where it holds 33.3%. IMACID manufactures phosphoric acid [raw material
    used for producing DAP (Diammonium Phosphate)]. The prices of phosphoric acid have gone up from $400 to $1400
    per tonne which will contribute higher income to the profits of the Chambel fertilizers.
3. The company will complete its expansion plan by April 2009 by rising the capacity by 0.14 MTPA. This will add
    another 58 crore to the companies bottom line is FY-2008 whole year.
4. Also if much awaited policy on urea is announced and the pricing is based on the import price policy then the company
    will benefit.

Returns -
CMP - Rs. 34
Buying price - Below Rs.28
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.34 as buying price following are the returns
80% Target acheived in month of 20 May 2009        (Updated - 22 May 2009)

                                                      Coromandel Fertilizers

1. Coromandel Fertilizers, a leading player in the domestic fertilizer sector producing complex fertilizers including DAP,
    will also be a key beneficiary of the new policy.
2. As the company imports almost 90 per cent of its raw material requirement, the benefits of import price parity would
    directly reflect in its margins higher RoE going forward.
3. The company has taken several strategic initiatives to optimize its cost structure like in the past secured sourcing of
    key raw materials such as rock phosphate by acquiring stakes in large global suppliers like Foskor, a leading global
    manufacturer of phosphoric acid.
4. The company has been investing to grow inorganically, where it has completed several acquisitions including EID
    Parry’s farm inputs division, Godavari Fertilizers (phosphate producer) and pesticide maker Ficom Organics. This has
    not only helped the company to scale up its business and diversify, but also enhanced its distribution network in the
    country.
5. The company is increasing its phosphate capacity to 3.3 million tonnes by 2009 as against the current capacity of 2.5
    million tonne.

Please Note - Its major support is at 140 (which is its 200 DMA) once this support is broken the stock price may slide down till 110.
Returns -
CMP - Rs.88
Buying Price - Below Rs.70
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.88 as buying price following are the returns
88% Target acheived in month of 20 May 2009          (Updated - 22 May 2009)

                                        Gujarat State Fertilizers & Chemicals

1. Gujarat State Fertilizers and Chemicals (GSFC) is more diversified player and generate a part of its revenue from value
    added chemicals that enjoy operating margins between 15-40 per cent.
2. Its fertilizer business accounts for 65 per cent of revenues and has wide product basket with exposure to Urea, DAP and
    so on.
3. GSFC is the second-largest DAP producer in India and would be the key beneficiary of the recent policy announcement.
4. The company is also the country’s largest producer of caprolactum, a critical industrial chemical used in textile yarn, tyre
    cord and as specialty chemicals for the textiles and leather industries.
5. Caprolactum business should rise as the company plans to expand its capacity of 70,000 tonne per annum to 1, 20,000
    tonne per annum.
6. Additionally, the company is debottlenecking (increasing capacity) its existing caprolactum capacities by about 10 per
    cent.

Returns -
CMP - Rs.69.5
Buying Price - Below Rs.60
Returns - 50 to 70%
Investment period - 2 to 3 years.
Taking into consideration Rs.70 as buying price following are the returns
114% Target acheived in month of 20 May 2009          (Updated date - 22 May 2009)


                                                           Tata Chemicals

1. Tata Chemicals generates about 46 per cent of its revenue from fertilizers, which includes urea and complex fertilizers,
    while the rest is contributed by other chemicals products and edible salt (non fertilizer division).
2. It recently acquired General Chemical Industries Products Inc (GCIP) in the USA. With this acquisition, the company has
    emerged as the world’s second largest soda ash company.
3. Through GCIP, Tata Chemicals will now be able to new markets including Latin America for its existing products.
4. Tata Chemicals is expected to scale up DAP utilization (currently at 50 per cent) as the availability of phosphorus is
    increasing on the back of its stake in Indo Maroc Phosphore S.A. (IMACID).

Returns -
CMP - Rs.121.6
Buying Price - Below Rs.110 (It went down till Rs.95.20)
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.95.20 as buying price following are the returns
137% Target acheived in month of 20 May 2009          (Updated - 22 May 2009)

                    Aries Agro Ltd - projecting Rs.200cr revenues

About Aries Agro Ltd
Mumbai-based Aries Agro Limited, a manufacturer of micronutrients and specialty fertilizers, is targeting to achieve a turnover of Rs.200 crore during the 2009-10 financial year on the back of its proposed capacity expansion.

Why to buy Aries Agro Ltd- Reasons
1) The company is in the process of setting up three manufacturing units - one each at Ahmedabad, Lucknow and Panvel
    in Maharashtra - by September 2008 at an outlay of Rs.17 crore.
    Post expansion, the company’s manufacturing capacity would increase to 100,800 tonne per annum (TPA), from
    21,600 TPA.
2) The company is looking at new potential areas abroad on the export front, Company official said Aries would invest
    Rs.7.5 crore in Golden Harvest, a fertilizer company based out of Sharjah, which would in turn invest 25 per cent in
    UAE-based Mapco Fertilisers for setting up two plants to cater to the growing demand in the region. Company official
    said these plants to go operational by this year end.
3) The company toady inaugurated its secondary, micronutrients and water soluble major fertilizers manufacturing facility,
    it’s fifth in the country, at Pashamylaram in Medak district on Andhra Pradesh. The plant, touted as the country’s
    largest manufacturing unit for micronutrients, capacity of this plant. Besides the capacity to manufacture 32,400 TAP,
    it will be engaged in the packaging of other major brands including Macrofert, Boron 20 and Fertimax with a packaging
    capacity of nine million pouches a year.
    Aries Agro, which achieved a turnover of Rs.74 crore, last year, expects to close the current financial year with
    revenues of Rs.103 crore. Its outlook for the 2008-09 fiscal is Rs.150 crore.

Projected Revenue growth
Year 2006 - 07 - 74 crore
Year 2007 - 08 - 103 crore
Year 2008 - 09 - 150 crore
Year 2009 - 10 - 200 crore

Returns -
CMP - Rs.36.75
Buying Price - Below Rs.35 (It went down till Rs.24.15)
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.24.15 as buying price following are the returns
84% Target acheived in month of 13 April 2009          (Updated - May 2009)

Latest Updates

(11 Feb 2009)
Aries Agro entered into an agreement with Pradham Biotech
Aries Agro announced that the subsidiary of the company that is Aries Agro Care (P) has entered into an agreement with Pradham Biotech (P) for providing technology in seeds development and for seed production arrangements related to a wide range of field and vegetable crops.
The company announced a substantial drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 88.21% to Rs 5.29 million from Rs 44.85 million in the same quarter previous year.
Net sales for the quarter rose 7.32% to Rs 310.18 million, while total income for the quarter rose 7.15% to Rs 310.30 million, when compared with the prior year period.

(01 Jan 2009)
Aries Agro anticipates annual sales revenue growth of 25%
Aries Agro achieved net sales of Rs 367.9 million during the second quarter ended Sep. 30, 2008, with total sales revenues for the first half of the financial year 2008-09 totaling to Rs 538.9 million, reporting a growth of 19%, as against Rs 452.09 million for the same period last year.
Dr Rahul Mirchandani, executive director, Aries Agro, commenting on the company`s financial, told Myiris, in an exclusive talk, that the company expects annual sales revenue growth to be around 25%.

The company is engaged in the business of manufacturing micronutrients and other nutritional products for plants and animals. It was incorporated as a private limited company on Nov. 27, 1969, converted into a public limited company on Dec. 30, 1994, and got its current name on Oct. 27, 2006.

The ISO 9001:2000 certified company has products spread across the five main categories of multi-micro nutrient fertilizers, chelated micro nutrient fertilizers, specialty soluble fertilizers, anti-bacterial products for agricultural use, and nutritional products for animals. These categories can be grouped under the three segments of plant nutrients, insecticides and veterinary products totaling around 37 products. Agromin and Chelamin are the flagship brands of the company. The company has indigenously manufactured the product calcium chelate at its own R&D facilities.

The manufacturing facilities of the company are located in Bangalore, Mumbai, Hyderabad and Kolkata with a total production capacity of 21,600 TPA.

The company recently set up Micro-Nutrient manufacturing unit at Lucknow. Dr Mirchandani, commenting on the revenue and profit expected from the new unit, told Myiris, ``The company expects the Lucknow unit to give a sales revenue of Rs 40 million, with a gross margin of approx. Rs 18 -- 20 million.``

When asked if the company has further plans to expand capacity, Dr Mirchandani said, ``Having implemented the expansion of Hyderabad, Ahmedabad and Lucknow, we have adequate capacity for the current fiscal. We expect the 4th unit planned in Maharashtra to be implemented in time for the Kharif 2009 season in end June 2009. This will then take the aggregate capacity to 100,800 MT.``


                                 Jain Irrigation Systems Ltd

Government strategies about Agriculture
Government is increasing focus on irrigation. Under the irrigation scheme of Bharat Nirman Programme the government is targeting to bring more area under cultivation including new land besides improving utilization of existing irrigation land. It is also planning to penetrate more on new advanced technologies like micro irrigation systems.

About Company (Jain irrigation)
1) Jain irrigation is a leader in micro irrigation systems with over 50% market share.
2) It offers a range of products to name few - dip irrigation systems, sprinkler irrigation systems and many more.
3) The Company has also done an overseas acquisition which makes it to expand in geographical locations across the
    world.
4) The Company is also present in PVC pipes and plastic sheets, food processing.

Past performance
The company has achieved CAGR (Compounded Annual Growth Rate) of 40% in last 4 to 5 years.

Company’s Expectation
1) The Company domestics’ micro irrigation business is expected to maintain in 45 - 50% over the next 3 to 4 years.
2) Food processing business is expected to grow by 60% in financial year 2008, Jain irrigation comes in the top bracket
    in this segment

Conclusion
The company is not only operates in high growth areas, but these areas also offer high long-term growth visibility, which should help Jain Irrigation maintain strong growth in earnings over the next few years. The fruits of its investments into overseas markets including the acquisition, will also fuel growth. The improvement in operational efficiency of these acquired companies and access of the new technologies and markets should also reflects positively on consolidated numbers going forward.

Returns -
CMP - Rs. 290.5
Buying Price - Below Rs.240
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.290.5 as buying price following are the returns
114% Target acheived in month of 19 May 2009          (Updated - 22 May 2009)

                                                               Himadri Chemicals Ltd

Returns -
CMP - Rs.107
Buying Price - Below Rs.100 (It went down till Rs.68)
Returns - 40 to 60%
Investment period - 2 to 3 years.
Taking into consideration Rs.68 as buying price following are the returns
155% Target acheived in month of 20 May 2009          (Updated - 22 May 2009)

Company profile
Himadri Chemicals is India’s largest coal tar pitch manufacturer with a 70 per cent market share. The company process coal tar to make coal tar pitch, creosotes and chemical oils. While coal tar pitch is used in the making of aluminium and graphite electrodes, creosotes are used as an industrial wood preservative. Naphthalene, a chemical oil derivative, finds application in the dyestuff and pharmaceutical sectors.

About expansion plans
1. The company has three distillation plants in India with a combined coal tar distillation (a process of extracting compounds
    from coal tar) capacity of about 1.69 lakh metric tones per annum (mtpa). The company intends to increase this to a
    million mtpa by FY10; the expansions are being carried out in India as well as China.
2. This expansion is about to cost Rs.630 crore, by FY10, of the company’s targeted capacity of 1 million mtpa, 60 per cent
    will come from China and the rest from India.
3. The company is focusing on China because it is the largest manufacturing base of coal tar (raw material) and coal tar
    pitch (final product).
4. Coal tar pitch is used as binding material for manufacturing anodes required for smelting of alumina into aluminium. The
    aluminium sector is the largest consumer of coal tar pitch and good growth prospects are a positive for Himadri.
5. Indian aluminium producers such as Hindalco, Nalco and Vedanta are on an expansion spree and aluminium production in
    India, which is at 1 million tones per annum, is expected to quadruple to 4 million on the back of investments to the tune
    of Rs.1,00,000 crore by aluminium majors. This is going to give huge opportunities for Himadri.
6. Large demand from China will also help increase its sales.
7. Himadri also intends to export coal tar pitch to the Middle East, which along with China accounts for 60 per cent of the
    planned capacity for aluminium globally.

Other Value-added products
1. Beside coal tar pitch, the company also manufactures Creosote oil capacity at 40,000 mtpa and naphthalene (chemical
    oil) at 8,000 mtpa.
2. The company is planning to increase capacity to 70,000 mtpa by FY10.
3. In month of January 2008 company started production of mesophase pitch (used for manufacture of lithium ion batteries).
    The company is planning to increase the production of mesophase from 120 metric tones (MT) now to 1,000 MT by end of
    FY2009 and this shared help to improve its margins as mesophase pitch sells for about Rs.8 lakh per metric tonne.

Over all conclusion
1. The company is the only large organized player in the country, contributing to 70 per cent of the aluminium sector
    requirements.
2. Globally, its major competitors are also at a disadvantage given that they have a higher production cost per metric tonne.
    Thus, going forward the story should only get better due to higher volumes, lower operational costs and product pricing
    flexibility.

About Deepak Fertilizer
1. Deepak Fertilizers and Petrochemicals (DFPCL) is a Pune-based company with an annual turnover of Rs 1,400 crore and
    a market capitalization of Rs 475 crore. The company derives over 72% of its revenues from chemicals and 25% from
    fertilizers. The company is generating healthy cash flows and is likely to emerge a key beneficiary of increased availability
    of natural gas in India over next few months.
2. DFPCL manufactures various basic chemicals occupying high market share in most of them in India. It enjoys nearly 45%
    market share in nitric acid, 35% market share in ammonium nitrate, and 16% in methanol and is the only producer of
    isopropyl alcohol (IPA) in India. However, availability of natural gas remains an ongoing concern due to which the company
    is forced to operate its methanol and nitrophosphate fertilizers units at lower than full-capacity.
3. Also the company has diversified into real estate. It has built a shopping mall Ishanya with 5.5 lakh sq feet leasable area.
    With around 50 stores, a little over half of total area is operational. Last year DFPCL entered into a joint venture with Yara
    International, a Norwegian manufacturer, to sell its specialty fertilizers in India.

Growth Prospects
1. The company recently increased the capacity of its nitric acid plant by onethird to 400,000 tonne per annum (TPA).
2. It has built up ammonia storage tanks of 15,000 tonne capacity at JNPT. Once these become operational from April 2009
    the company will be able to import ammonia and save natural gas, which can be diverted to increase production of other
    products.
3. The company is now firmly connected to the national natural gas grid and has access to natural gas produced anywhere in
    the country. With RIL commencing natural gas production, DFPCL’s chances to secure a long-term supply of natural gas
    at reasonable price appear bright.
4. The company is setting up a 140,000 TPA nitric acid plant by end of 2009 and 300,000 TPA ammonium nitrate plant near
    its existing plant in Taloja at a cost of Rs 650 crore in first half of FY 11.

It's Earnings
1. The net sales of DFPCL have grown at a CAGR (Compounded Annual Growth Rate) of 21.7% over last five years while the
    net profits grew at 9.5%. Its debt-to-equity ratio stood at 48.6% for the year ended March 2008 with the return on capital at
    17.2%.
2. The company posted 8.5% fall in profits during the quarter ended December 2008. However, the poor performance was due
    to crash in commodity prices and also due to 2-month closure of its nitric acid plant for expansion.
3. Over all the 12-month period ending December 2008, the company has expanded its profits by 45% to Rs 140 crore with
    51% jump in net sales to Rs 1,396 crore.
4. In the past the company has distributed almost one-third of its annual profits by way of dividends with Rs 3.5 per share in
    FY08.

Expected Returns
Deepak fertilizers is generating healthy cash flows, paying attractive dividend and better business prospects, all together makes a good investment opportunity for long term.
CMP - Rs 50.85
Buying price - Watch its support at Rs 40, buy near or below Rs 40.
Expected Returns - Above 70% to 80%
Investment period - 2 to 3 years

Coming Soon.......... -
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