Shares of Best Agrolife Ltd tanked 15% lower after the company reported its results for the quarter and the year ended on March 31, 2023. Its share price reached an intraday low of ₹ 887.15 apiece on the National Stock Exchange (NSE) and settled 11.46% lower at ₹ 929.00 apiece.
Ace investor Ashish Kacholia holds 532,526 shares of the company or a 2.3% stake in the company. His holdings were approximately worth ₹ 49.8 crores as of Tuesday.
Best Agrolife Ltd. is a leading agrochemicals manufacturer in India It is one of the fastest-growing manufacturers of technicals, formulations, intermediates and public health products. As part of its P2P set-up, Best Agrolife caters to several blue-chip corporates and leading MNCs from India and abroad.
On a consolidated basis, the company’s revenue from operations grew 44% YoY to ₹ 1746 crores in FY23. It reported a gross margin of 28% in FY23 compared to 19% in FY22. Its profit after tax was at ₹ 192 crores, up 83% YoY.
However, its revenue came in at ₹ 253.91 crore in the January to March quarter (Q4FY23) 2023, down 17.92% from ₹ 309.35 crore in the same quarter last year (Q4FY22). It reported a quarterly net loss of ₹ 8.41 crore in Q4FY23, down 122.03% from ₹ 38.16 crore in March 2022. Its EBITDA stood at ₹ 7.81 crore in March 2023 down 87.62% from ₹ 63.09 crore in March 2022.
With a market capitalization of ₹ 2481 crores, Best Agrolife is a small-cap company. It has a high return on equity of 45.59% and an ideal debt-to-equity ratio of 0.96. Its shares were trading at a price-to-earnings ratio (P/E) of 10.12, which is significantly lower than the industry P/E of 16.68, indicating that might be undervalued as compared to its peers.
Written By Simran Bafna
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