On Thursday the share price of the microcap company hit its 5 percent upper circuit to Rs 308.70 per share to its previous close of Rs 294 per share after the company revealed a new D2C Business Model.
According to Nirman Agri Genetics Ltd’s filing, the company launched “Krushi Dham,” a direct-to-consumer (D2C) business model that provides farmers with a one-stop shop for all of their needs, from seeds to finance.
Nirman’s Krushi Dham gives farmers control over branding, product innovation, and market reach by eliminating middlemen. This direct connection with customers strengthens relationships and drives business growth.
Looking at the financials of Nirman Agri Genetics Limited, net revenue increased by 17 percent quarter on quarter, from Rs 11.04 crore in Q1FY24 to Rs 12.95 crore in Q2FY24.
Furthermore, the company’s net profit increased by 16 percent year on year, from a net profit of Rs 2.11 crores in Q1FY24 to a net profit of Rs 2.11 crores in Q2FY24.
The company’s share price rose 190 percent since the company was listed on March 28, 2023. If an investor invested Rs 1 Lakh in March the current value of the investment would be Rs 2.9 Lakh.
Nirman Agri Genetics Ltd has a low debt-to-equity ratio of 0.04, with a return on equity of 27 percent, a return on capital employed of Rs 26 percent, and a net profit margin of 14 percent. Also, they improved their debtor day from 74.8 to 51.8 days.
With a market capitalization of Rs 184 crores, the company is classified as a micro-cap. The promoter owns 66 percent of the shares, while the general public holds the remaining 34 percent.
Nirman Agri Genetics Limited is an organized Agri-Input Company in India that was founded in 2020. High-quality hybrid seeds, pesticides, and bio-organic products are manufactured, processed, and sold by the company.
Written by Sriram KV
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