In Friday’s trading session, the share price of one of the fast-growing agrochemical companies for technical manufacturing surged 10.6 percent to hit an intraday high at Rs. 263.85 on BSE, after the company announced commissioning an intermediate plant towards Backward Integration of one of the Fungicide.
At 10:57 a.m., the shares of India Pesticides Limited (IPL) were trading in the green at Rs. 257, up by 7.73 percent, compared to its previous closing price of Rs. 312.55, and has a market cap of Rs. 2,960 crore.
According to the latest regulatory filings with the stock exchanges, IPL commissioned an intermediate plant towards Backward Integration of one of the Fungicide which was primarily being imported and is based on its in-house Indigenous R&D Technology.
The company further mentioned that, it is one of many steps taken by IPL in line with the ‘Government of India’s initiative ‘Aatma Nirbhar Bharat’ by substituting import and manufacturing in India.
On a consolidated basis, the company’s revenue from operations fell by 36.3 percent YoY from Rs. 198.2 crore in Q4 FY22-23 to Rs. 126.32 crore in Q4 FY23-24, while the after-tax profit also declined by 96.5 percent YoY from Rs. 30 crore to Rs. 1.06 crore, during the same period.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA decreased from Rs. 45 crore in Q4 FY22-23 to Rs. 7 crore in Q4 FY23-24, representing a decline of 83.6 percent.
The return on equity (ROE) stood at 7.29 percent in FY23-24, down from 18.52 percent in FY22-23, as well as a decline in the Return on Capital Employed (ROCE) from 25.01 percent in FY22-23 to 10.19 percent in FY23-24.
IPL is planning to increase manufacturing capability, following expansions at the Sandila and Hamirpur plants as well as employing a ‘China Plus One’ strategy and reducing dependence on China.
For FY25, the company planned a capital expenditure of Rs. 110 crore to boost capacity further.
As per the shareholding pattern of March 2024, the Promoters hold a 63.61 percent stake in the company, Foreign Institutional Investors hold a 2.4 percent stake, while Retail Investors and Domestic Institutional Investors hold a 33.95 percent and 0.04 percent stake in IPL, respectively.
India Pesticides Limited is engaged in the business of agri-chemicals which primarily includes the manufacture, sale and distribution of insecticides, fungicides, herbicides and various other agrochemical products, and has its own manufacturing site for agrochemical production in Uttar Pradesh.
The company is a leading manufacturer of technical grade Herbicides, Fungicides, Insecticides, Biocides and Active Pharmaceutical Ingredients (APIs) and the sole Indian manufacturer and global leading manufacturer of Captan, Folpet and 2 Thiocarbamate Herbicide, in terms of production capacity.
IPL’s shares have delivered positive returns of 11.6 percent in one year, but has given nearly 26 percent of negative returns in the last six months.
Written by Shivani Singh
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