The shares of this Pharma company surged more than 6 percent to Rs.611.75 after the government granted a 20-year patent to combat fungal diseases that affect crop yields.
Price Movement
The share price of Best Agrolife Ltd. on Tuesday surged by 6.4 percent to an intra-day high of Rs.611.75 per share from its previous close of Rs.574.75 apiece.
What is the news
Best Agrolife Limited’s wholly-owned subsidiary, Seedlings India Private Limited received a patent for an invention titled “Synergistic Fungicidal Composition” from the Indian Patent Office for 20 years starting from August 9, 2021, as per their latest BSE filling.
This patent represents an advancement in their agrochemical offerings, particularly in the context of combating fungal diseases that affect crop yields. The patented fungicidal formulation combines Trifloxystrobin and Valifenalate.
Practical Benefit
The combination of Trifloxystrobin and Valifenalate marks a breakthrough in crop protection, offering farmers a highly effective solution against harmful fungal diseases. It is beneficial for tomato and potato crops, protecting them from early and late blight.
Additionally, it provides exceptional defence against downy mildew in grapes, onions, and cucurbits, even at low doses.
The formulation’s ability to be effective at lower application rates can lead to reduced costs for farmers. This not only makes it more accessible but also encourages sustainable agricultural practices by minimizing the quantity of chemicals used.
International Expansion
Best Agrolife Ltd. is strategically expanding its international footprint to drive sustainable growth. The company has filed for patents in 54 countries and commenced registration work in multiple geographies of Africa and Europe, laying the groundwork for global expansion.
Additionally, Best Agrolife recently established a holding company in Mauritius and plans to set up international subsidiaries.
Financial Performance
Despite its ambitious expansion plans, Best Agrolife Ltd. faces disappointing financial results, reporting a 59 percent YoY decline in total revenue to Rs.104.23 crores in Q1 FY25, down from Rs.260 crores in Q1 FY24, and a staggering 70 percent QoQ drop from Rs.347.85 crores in Q4 FY24.
The financial results also reveal a net loss of Rs.21.09 crores for Q1 FY25, compared to a net loss of Rs.32.44 crores in the same quarter a year ago. In the previous quarter (Q3
FY2024), the company reported a net loss of Rs.11.54 crores, indicating ongoing financial challenges.
Overall, Best Agrolife Ltd.’s financial performance is not good, highlighting the need for strategic improvements to enhance profitability and competitiveness in the market.
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 8.73 percent of the shares, while Retail Investors possess 38.62 percent, and Domestic Institutional Investors (DIIs) hold a smaller share of 2.53 percent.
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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