The shares of the compounded animal feed manufacturer hit 10 percent upper circuit of Rs 6.30 apiece after the company leased 64,000 sq. yards of land for the cultivation of Moringa.
With a market capitalization of Rs 110.39 crore, the shares of Ajooni Biotech Ltd were trading at Rs 6.30 per share, increasing around 9.57 percent as compared to the previous closing price of Rs 5.75 apiece.
According to the company filing, Ajooni Biotech Ltd has leased 64,000 square yards of land in Derabassi, Punjab for the cultivation of Moringa nursery and plantation, as well as initiatives to begin growing Moringa in the states of Rajasthan and Gujarat, and is in the process of acquiring land for large-scale Moringa cultivation to create wealth through improved milch animal nutrition, resulting in higher productivity and reduced global warming.
Furthermore, Moringa leaves are used in Neutraceutical Industries as raw material. These are rich in amino acids and 18 types of amino acids are found in Moringa. It further improves the nutritional value of feed and overall health of cattle and increases the milk by 10-15% of cattle.
Moreover, Moringa oil is made from crushing moringa seed and moringa oil has the characteristics of making aviation fuel. Bark of moringa is used to make charcoal and has the possibility to produce lithium to be used in EV batteries.
Looking into Ajooni Biotech Ltd’s performance, revenue increased by 88 percent from Rs 10.63 crore in Q3FY23 to Rs 20.05 crore in Q3FY24. During the same time frame, net profit increased by 300 percent from Rs 0.11 crore to Rs 0.44 crore.
The company’s profitability measures show a decline in return on equity (RoE) from 6.40 percent in FY 21-22 to 2.69 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 10.55 percent to 4.72 percent. In contrast, the net profit margin (NPM) was 2.75 percent in fiscal year 22-23.
Ajooni Biotech Limited manufactures compounded animal feed and feed supplements in India. Its portfolio includes cow feed, cattle feed chips, camel feed, cotton oil cake, mustard oil cake, and feed supplements to meet the needs of an animal throughout its life.
Written by:- Abhishek Singh
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