Shares of this agrochemical stock under the ‘micro-cap’ category jumped up to 4 percent in Tuesday’s trading session after the company announced the commencement of commercial production of a new facility at its manufacturing Plant in Gujarat.
With a market capitalization of Rs 855.07 crores, the stocks of Dharmaj Crop Guard Limited started their trading session on Tuesday at Rs 259.25 and closed at Rs 253. The scrip witnessed an intra-day high of Rs 267.30 exhibiting a gain of 4 percent compared to the previous close of Rs 257.70 apiece.
In the past six months, the company’s shares have delivered nearly 55 percent return, shifting from Rs 167 to the current stock price level.
In a regulatory filing with the Bombay Stock Exchange (BSE), the company intimated about the successful commencement of commercial production of a state-of-the-art facility at their manufacturing plant located in the Bharuch District, Gujarat on Monday, 22nd January 2024. The facility is equipped with world-class infrastructure and designed as per the export market regulatory standards.
“This facility will not only enhance our blended profitability margin and strengthen our existing formulations business but also opens up new opportunities in domestic and export markets. We are also looking forward to venture into new verticals such as public and animal health from this facility.”, commented Mr. RameshbhaiTalavia, Chairman and Managing Director, Dharmaj Crop Guard Limited.
According to the standalone financials of the company, the prime business parameters, viz, operating revenues and after-tax profit numbers, showed decent growth with the former increasing from Rs 161 crores during Q1FY23-24 to Rs 252 crores during Q2FY23-24, and the latter, rising from Rs 14 crores to Rs 23 crores.
As per the recent presentations, the company has established its presence in various states including Gujarat, having plans to infuse Rs 70-80 crores in the state by next year, Madhya Pradesh, Rajasthan, and Maharashtra, and is expanding into North India and South India.
Moreover, the company stays optimistic for the rest of the year, with an entry into ‘active ingredients’ to strengthen the company’s business model and positioning in the industry.
Dharmaj Crop Guard Limited is engaged in the business of manufacturing as well as dealing in pesticides including concessionaires of public health products for pest control, herbicides, insecticides, fertilizers, and allied products. Geographically, the company generates the majority of its revenue from domestic operations within India.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
