The government’s grant of a 20-year patent for a new insecticide composition is expected to provide Best Agrolife with a competitive advantage in the market and contribute to the company’s future growth and profitability.
Price Movement
The share price of Best Agrolife Ltd. on Wednesday surged by nearly 3 percent closing at Rs.632.3 per share from its previous close of Rs.615.95 apiece.
What is the news
Best Agrolife Ltd. has been assigned a patent by the Indian Patent Office-Government of India for an invention entitled “STABLE SYNERGISTIC INSECTICIDAL COMPOSITION” for 20 years starting from November 2, 2022, as per their latest BSE filling.
The new insecticide composition, known as Nemagen, introduced by Best Agrolife is designed to address the growing issue of resistant pests that have caused significant crop damage.
Unlike existing products, Nemagen combines active ingredients providing broad-spectrum control over various pests.
Financial Overview
In the quarter ending March 2024, Best Agrolife Ltd. achieved total revenue of Rs.104.23 crores, a decline of over 59 percent compared to Rs.259.8 crores in Q1 FY23. Furthermore, on a quarter-over-quarter basis, the company experienced an even more 70 percent revenue decrease, falling from Rs.347.85 crore in the quarter ending December 2023.
Best Agrolife Ltd. reported a net loss of Rs.21.09 crores in Q1 FY25, and Rs.32.44 crores in the same quarter a year ago. Quarterly, the company also reported a net loss of Rs.11.54 crores in the Q3 of FY2024.
Best Agrolife Ltd. appears to lag behind its competitors in several financial ratios. The company’s Price-to-earnings (P/E) ratio stands at 108.25, notably higher than the industry median of 36.72. Additionally, its Return on Capital Employed (ROCE) is 8.7 percent and its Return on Equity (ROE) is 3.68 percent currently.
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Outcome
The innovative formulation of Nemagen is pivotal as it tackles pests resistant to existing insecticides, responsible for crop losses ranging from 30 percent to 50 percent.
Best Agrolife aims to secure an 8 percent market share in the Rs 6,300 crore segment targeting these pests within the initial two years of Nemagen’s launch.
Shareholding Pattern
As of June 2024, the shareholding structure of Best Agrolife Ltd. reveals that Promoters hold a controlling stake of 50.1 percent. Foreign Institutional Investors (FIIs) account for 8.71 percent of the shares, while Retail Investors possess 38.62 percent, and Domestic Institutional Investors (DIIs) hold a smaller share of 2.53 percent.
About Best Agrolife Ltd.
Best Agrolife Ltd. is engaged in trading agro-based products. It offers crop protection and food safety solutions to its farmers and serves the globe through agriculture. It offers more than 70 Formulations in the form of Insecticides, Herbicides, Fungicides, and Plant Growth Regulators, which are developed from active ingredients manufactured in-house.
Written by – Siddesh S Raskar
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