Shares of this micro-cap company hit a 5 percent upper circuit on Tuesday’s trading session after they signed the memorandum of understanding with the Institute of Biosciences and Technology. The shares have delivered more than 60 percent returns to its shareholders in 6 months.
With a market capitalization of Rs. 170 crores, the shares of Nirman Agri Genetics Ltd started Tuesday’s trading session on a flatter note at Rs. 270 compared to its previous close of Rs. 272.15. The shares clocked 5 percent upper circuit at Rs. 285.75 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced they signed a memorandum of understanding with the Institute of Biosciences and Technology, MGM University to exchange scientific research, technologies and innovation.
Furthermore, the company mentioned that this collaboration will help them to adopt new technologies in the agriculture industry which will help to cater high volume of farmers and new untapped domestic and international markets. This will also enable the company to obtain various grants from the Government.
During the recent financial year, the company’s prime indicators of business such as operating revenues and net profits exhibited an increase with the former taking a shift from Rs.13.49 crores in FY21-22 to Rs. 28.61 crores during FY22-23, and, the latter, during the same period, shifting from Rs. 2.56 crores to Rs. 4.01 crores.
The company earns revenue from multiple products, primarily from the Seeds division, which provided 86 percent of revenue in FY22, followed by Bio-Agri which contributes 8 percent to the company’s revenue and the remaining 6 percent of revenue comes from Micronutrients.
Coming onto the company’s important financial ratios, the return on equity (RoE) for FY22-23 stood at 27.06 and the return on capital employed (RoCE) was recorded at 26.6 percent for the same period. The company has a low debt to equity which means it has not relied much on debt to fund its operation.
According to the latest shareholding pattern, the Promoters have a 66.55 percent stake in the company and the remaining 33.95 percent is with the Retail Investors.
Headquartered in Punjab, Nirman Agri Genetics Ltd was incorporated in 2020. The company is in the business of production, processing, and marketing of high-quality hybrid seeds, Bio-organic, and Pesticides,
Written By Vaibhav Patil
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