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INTRODUCTION OF THE COMPANYUsher Agro Ltd is one of the leading agribusiness houses in thecountry. The company is an agri-food processing companyprimarily engaged in milling and processing of rice and wheat inNorthern India. They focus mainly on non-basmati rice and wheatproducts such as atta, maida, suji etc. Their plants are based inUttar Pradesh and Bihar, which are among the main rice andwheat growing regions in India. The company's principal productsinclude rice, bran, wheat and husk. Its wheat products include fineand superfine wheat flour (maida), r-aata, whole meal aata(chakki atta) and bran (choker). They have one subsidiarycompany, namely Usher Eco Power Ltd. Usher Agro Ltd was

incorporated on June 20, 1996 as a public limited company. Thecompany was established with the main object of manufacturingand processing in agro-based products and to deal in, trade,export or import such products. They entered the FoodProcessing Sector by setting up their first Rice Milling Plant atMathura in Uttar Pradesh with a capacity of 10,800 MTPA. In theyear 1998, the company set up their second rice mining plant attheir existing site at Mathura. In March 2003, they set up an

automated modernized rice milling plant at Buxar in Bihar, a richpaddy cultivating area with a capacity of 46,800 MTPA andcommenced commercial production. In the year 2004, thecompany obtained ISO 9001:2000 Certificate from IIC Korea. Inthe year 2005, they obtained HACCP (Hazard Analysis andCritical Control Point) Certificate from IIC Korea. Also, their brand'RASOI RAAJA' got registration from Trade Mark Authority.During the year 2006-07, the company made an entry in capitalmarket through Initial Public offer (IPO) resulting in the allotmentof 12,012,239 equity shares of Rs 10 each for cash at a premiumof Rs 5 per equity share. Their shares were listed on the BombayStock Exchange. They set up their Wheat Flour Mill at Mathurawith installed capacity of 75,000 MTPA. In the year 2008, thecompany further modernized their existing rice mill at Mathura

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(UP). In September 2008, they commenced operations of their 1MW rice bio mass cogeneration power project for the captiveconsumption at Mathura (UP). During the year 2008-09, thecompany commissioned third unit of Rice Milling at Chhata,Mathura (UP) plant with the capacity of 194,400 MTPA. With this,the total capacity of rice milling increased to 252,000 MTPA. Also,they set up new marketing and sales office at Mumbai, Indore,New Delhi and Kota (Bundi). During the year 2009-10, Usher EcoPower Ltd became a subsidiary of the company as a result ofallotment of 91,70,000 equity shares of 10 each fully paid upallotted to the company by Usher Eco Power Ltd. The company'sequity shares were listed with the National Stock Exchange of

India Ltd with effect from July 30, 2010. The company is in theprocess of enhancing their existing rice milling capacity of ChhataPlant by more than 100%. At present, the Chhata rice milling plantis having capacity of 194,400 MTPA and with expansion of291,600 MTPA, their Chhata rice milling capacity will be 486,000MTPA and total rice milling capacity will be 543,600 MTPA. Thecompany is in the process of modernizing the existing facility ofrice milling at Buxar and also adding additional capacity 50,000

MTPA thereby making the total capacity at Buxar to 96800 MTPA.Also, they are planning to setup a cogeneration power plant of 1MW at Buxar, Bihar for captive use. The company is planning toexpand their existing wheat milling capacity from75000 to 125000MTPA. This capacity expansion will increase the existing wheatmilling capacity by more than 60% from its existing capacity.

Products and services as per 2011Product Name Unit % of Stock % Cap. Util. Inst. Prod. Cap Prodn Sales Qty Sales (Cr.) Sales (Rs.) / Unit

Rice Qtl 80.5 0.0 0 0 1,668,685 451.23 2,704.11

Wheat Products Qtl 16.6 0.0 0 0 626,461 93.21

1,487.88

Bran Qtl 2.2 0.0 0 0 138,235 12.10 875.32

Husk Qtl 0.8 0.0 0 0 244,387 4.21 172.27

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Cereals / Wheat & Pulses qtl 0.0 0.0 0 0 0 0.00 -

Paddy MT 0.0 100.0 543,600 219,288 0 0.00 -

Paddy-Buxar MT 0.0 0.0 0 0 0 0.00 -

Paddy-Mathura MT 0.0 0.0 0 0 0 0.00 -

Wheat Processing MT 0.0 100.0 75,000 61,633 0 0.00 -

Board Of DirectorsManaging Director V K Chaturvedi

Whole-time Director Manoj Pathak

DirectorVijay RanchanAjay Prakash AroraS Prakash Arora

Nominee (IRBI) N Krishnan

Company Secretary Sarika S Singh

Peer Comparison

Company Market Cap(Rs. in Cr.)

P/E (TTM)(x)

P/BV(TTM)(x)

EV/EBIDTA(x)

ROE(%)

ROCE(%)

D/E(x)

Zydus Wellness 1,826.91 23.06 9.78 16.77 41.2 47.7 0.00

REI Agro 1,140.02 6.88 0.46 6.83 9.5 11.8 1.78

Hatsun AgroProd. 932.68 25.17 8.66 10.65 26.5 16.8 3.18

Vikas Wsp 697.99 1.78 0.65 2.86 15.5 23.2 0.10

Kwality Dairy 677.67 5.87 3.77 8.52 67.2 23.2 4.03

KRBL 653.94 4.13 0.98 6.50 14.2 12.1 1.44

Heritage Foods 560.01 18.51 6.01 5.38 10.4 12.9 2.00

Mount Everest 403.07 370.47 9.27 0.00 0.0 0.0 0.00

Usher Agro 233.50 5.33 0.86 9.64 20.9 15.5 1.58

Lotte India 203.00 44.50 0.46 0.00 1.1 1.4 0.00

DFM Foods 190.70 22.10 6.33 12.25 39.2 30.8 1.49

Vadilal Inds. 176.62 15.84 3.73 6.07 13.9 15.5 3.22

L T Foods 151.50 3.67 0.70 8.46 12.9 10.8 3.54

Lakshmi Energy 146.62 13.57 0.20 7.29 1.8 6.9 1.26

Umang Dairies 131.67 8.07 17.40 5.80 125.7 38.8 2.48

Key finanacial indicators

Units Jun-08 Jun-09 Jun-10

Revenue Rs million 1,415.2 2,094.6 3,422.9

EBITDA margins Per cent 13.5 13.1 14.1

PAT Rs million 123.2 145.2 232.0

PAT ma rgins Per cent 8.7 6.9 6.8

Revenue growth Per cent 103.0 48.0 63.4

EBITDA growth Per cent 163.0 43.1 75.8

PAT growth Per cent 246.3 17.9 59.8

Gearing Times 0.8 1.4 2.1

RoCE Per cent 24.5 19.2 17.5

RoE Per cent 30.5 25.0 27.3

http://www.indiainfoline.com/Markets/company/Zydus-Wellness-Ltd/531335http://www.indiainfoline.com/Markets/company/REI-Agro-Ltd/532106http://www.indiainfoline.com/Markets/company/Hatsun-Agro-Product-Ltd/531531http://www.indiainfoline.com/Markets/company/Vikas-Wsp-Ltd/519307http://www.indiainfoline.com/Markets/company/Kwality-Dairy-India-Ltd/531882http://www.indiainfoline.com/Markets/company/KRBL-Ltd/530813http://www.indiainfoline.com/Markets/company/KRBL-Ltd/530813http://www.indiainfoline.com/Markets/company/Heritage-Foods-India-Ltd/519552http://www.indiainfoline.com/Markets/company/Mount-Everest-Mineral-Water-Ltd/531096http://www.indiainfoline.com/Markets/company/Mount-Everest-Mineral-Water-Ltd/531096http://www.indiainfoline.com/Markets/company/Usher-Agro-Ltd/532765http://www.indiainfoline.com/Markets/company/Lotte-India-Corporation-Ltd/590004http://www.indiainfoline.com/Markets/company/DFM-Foods-Ltd/519588http://www.indiainfoline.com/Markets/company/DFM-Foods-Ltd/519588http://www.indiainfoline.com/Markets/company/Vadilal-Industries-Ltd/519156http://www.indiainfoline.com/Markets/company/L-T-Foods-Ltd/532783http://www.indiainfoline.com/Markets/company/Lakshmi-Energy-and-Foods-Ltd/519570http://www.indiainfoline.com/Markets/company/Umang-Dairies-Ltd/500231http://www.indiainfoline.com/Markets/company/Umang-Dairies-Ltd/500231http://www.indiainfoline.com/Markets/company/Lakshmi-Energy-and-Foods-Ltd/519570http://www.indiainfoline.com/Markets/company/L-T-Foods-Ltd/532783http://www.indiainfoline.com/Markets/company/Vadilal-Industries-Ltd/519156http://www.indiainfoline.com/Markets/company/DFM-Foods-Ltd/519588http://www.indiainfoline.com/Markets/company/Lotte-India-Corporation-Ltd/590004http://www.indiainfoline.com/Markets/company/Usher-Agro-Ltd/532765http://www.indiainfoline.com/Markets/company/Mount-Everest-Mineral-Water-Ltd/531096http://www.indiainfoline.com/Markets/company/Heritage-Foods-India-Ltd/519552http://www.indiainfoline.com/Markets/company/KRBL-Ltd/530813http://www.indiainfoline.com/Markets/company/Kwality-Dairy-India-Ltd/531882http://www.indiainfoline.com/Markets/company/Vikas-Wsp-Ltd/519307http://www.indiainfoline.com/Markets/company/Hatsun-Agro-Product-Ltd/531531http://www.indiainfoline.com/Markets/company/REI-Agro-Ltd/532106http://www.indiainfoline.com/Markets/company/Zydus-Wellness-Ltd/531335

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Peer Comparison

Usher Agro Ltd KRBL Limited Kohinoor Foods Ltd. L T Foods Ltd.

Jun-10 Mar-10 Mar-10 Mar-10

Revenue (rs mn) 3,422.9 15,928.5 8,544.5 10,517.6

EBITDA margins (%) 14.1 13.7 12.7 9.0

PAT (Rs mn) 232.0 1,245.5 -70.2 331.5

PAT margins(% ) 6.8 7.8 -0.8 3.2

Gearing (x) 2.1 1.2 4.2 5.1

EPS (Rs/share) 10.4 5.1 16.6 5.9

PE (x) 8.9 6.5 2.6 9.1

P/BV (x) 2.0 1.5 0.6 0.7

RoCE (%) 17.5 17.3 6.0 9.9

RoE (% ) 27.3 26.0 n.m 20.4

EV/EBITDA (x ) 8.2 6.2 8.1 9.9