Potential multi-bagger small-cap - CAMSON BIO TECHNOLOGIES

Camson Bio Technologies Ltd is a Bangalore based integrated Agricultural biotech company covering hybrid seeds, bio-pesticides and bio-fertilisers. It aims to provide zero residue vegetables and fruits to the society. It has presence in 12 vegetables and estimated to give 30 to 40 % higher yields than its closest competitors with longer shelf life. Decision to phase out 200 chemical pesticides by European union, and increasing concern over usage of chemical pesticides is giving bio-pesticides a good market. Global demand is likely to double by 2014 for these products.

Camson is well positioned to tap the growing demand in this segment. It is also scouting partners in Brazil and Indonesia for setting up manufacturing facilities, where the company will transfer technologies on royalty/license basis.

A look at financials of the company show steady growth, and good balance sheet:

	FY2011	FY2010	FY2009	FY2008
Figures in ` Crore
Income	99.14	79.98	49.91	41.91
Net Profit	22.03	13.66	8.11	7.79
Reseves & Surplus	53.32	26.29	15.85	8.06
Share Capital	18.13	16.05	13.70	9.80
Debt	N.A	1.00	1.11	1.83

The current valuation is pretty attractive. As on July 15, 2011 - the P/E ratio was around 8.7. The company has given around 20% return on equity.

In June 2011, SBI Magnum Fund purchased 607,125 shares of Camson Bio for Rs. 226.73 Crore and before that, 452,990 shares in March 2011.  Again, signs of a good bet!

Overall, looks a solid mult-bagger small cap for the long term!