One of India’s leading Agri-based companies with minimal debt and multibagger returns gets a ‘Buy’ tag with a potential upside of 40 percent:
With a market capitalization of Rs 636.24 crores, the stocks of Kilpest India Limited are currently trading at Rs 847.40, gaining around 4.30 percent as compared to the previous close of Rs 812.45 apiece.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of 141 percent. The same means if someone had invested Rs 1 lakh into the stock, it would have converted to Rs 2.41 lakhs within a period of one year.
Digging into the financials, the company, on an annual basis, has seen a marginal dip in the basic operating indicators such as revenues and net profits. The revenues reduced from Rs 80 crores during FY21-22 to Rs 61 crores during FY22-23, and, the net profits, during the same time period, declined from Rs 32 crores to Rs 25 crores.
Despite underperforming during the recent period, Nuvama, one of the well-known Broking Firms in India, gave a ‘Buy’ recommendation for the stock with a target price of Rs 1,184 indicating a gain of around 40 percent as compared to the current stock price prevailing in the markets.
The investment rationale for providing such a recommendation pertains to the strong potential of the ‘Molecular Diagnostics’ business, de-prioritizing the agrochemical business to improve margins, expansion of subsidiaries overseas, and many more.
The debt-to-equity ratio of the company, one of the most popular leverage metrics, was close to ‘nil’ reported at 0.01 times.
According to the shareholding pattern data for the quarter ended June 2023, the company’s Promoters hold a 38.43 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.06 percent stake in the company.
Incorporated in 1972, Kilpest India Limited is engaged in the business of manufacturing as well as selling biofertilizers, micro-fertilizers, and pesticide products in India. The company offers a wide range of diagnostic kits for various diseases.
Written by Amit Madnani
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