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Agro Tech Foods - Cashing in on ACT, Not rated - Emkay



Posted On : 2012-09-05 20:22:11( TIMEZONE : IST )

Agro Tech Foods - Cashing in on ACT, Not rated - Emkay

- ATF has a strong presence in healthy edible oil business through its brand Sundrop. However, Sundrop witnessed flat volume growth vis-à-vis 12% reported by Saffola.

- The company is constantly focusing on high margin packaged food category (ACT II popcorn, peanut butter, chocolate pudding, convenience foods etc)

- Also, due to its affiliation with ConAgra we expect the company to enter into newer categories that ConAgra is present in

- Revenue share from foods to catapult to 50% of sales (current 17%) over the long term. However, sales growth to remain muted as Sundrop is not witnessing growth.

Source : Equity Bulls

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