The shares of this smallcap company jumped around 3 percent in Thursday’s trading session after receiving a patent for a synergistic pesticidal composition that combines a plant growth regulator with a neonicotinoid insecticide.
Price Movement:
With a market capitalization of Rs. 1,624 crores, the shares of Best Agrolife Ltd started Thursday’s trading session on a higher note at Rs. 678.80 compared to its previous close of Rs. 673.90. During the trading session, the shares hit a high of Rs. 704, gaining around 4 percent and are currently trading at Rs. 688 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had been granted a patent by the Indian Patent Office-Government of India for an invention of synergistic pesticidal composition that combines a plant growth regulator with a neonicotinoid insecticide for the term of 20 years.
This patent was awarded to Seedlings Private Limited, a wholly-owned subsidiary of Best Agrolife Ltd.
The patented composition includes a plant growth regulator and a neonicotinoid insecticide. Neonicotinoids are a class of neuro-active insecticides modelled after nicotine, known for their effectiveness against a variety of pests.
Such compositions are typically used in agricultural settings to enhance crop protection, improve seed germination, and control seed decay. The innovation lies in the ability to efficiently manage pests while promoting healthy plant growth.
Financials:
Looking at the company’s financial statements, the revenue magnified by around 285 percent from Rs. 135 crores during the March quarter to Rs. 519 crores in the June quarter. In addition, the net profits showcased a transition from a net loss of Rs. 72 crores to a net profit of Rs. 21 crores during the same timeframe.
Recent Development:
The company was previously awarded a 20-year patent for a synergistic pesticidal composition combining pymetrozine, isoprothiolane, and a strobilurin fungicide. This formulation aims to improve pest and disease management in agriculture.
The combination of these three active ingredients is expected to create a synergistic effect, meaning that their combined efficacy is greater than the sum of their individual effects. This can lead to improved pest and disease control, reduced application rates, and potentially lower costs for farmers.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 16.42 percent and a return on capital employed (RoCE) of 27.66 percent for the period spanning FY23-24. Further, the net profit margin stood at 5.67 percent during the same period.
Company Profile:
Established in 1992, Best Agrolife Ltd is a leading Indian agrochemical company, that specializes in the manufacture and supply of a diverse range of crop protection products, including insecticides, herbicides, fungicides, and plant growth regulators.
Written By Vaibhav Patil
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