The share price of a small-cap agrotech company gained 18.76 per cent to touch a fresh 52-week high of ₹ 195.00 apiece after the company reported robust results for the first quarter of the financial year 2023-24. Its shares settled at ₹ 190.00 apiece on Monday.
Tierra Agrotech is an agriculture technology company. It is in the business of seed research, production, processing and marketing of seeds and related products.
According to an exchange filing, the company, on a consolidated basis, reported a 31.36 per cent increase in its net profit to ₹ 4.78 crores in Q1FY24 (April to June 2023) from ₹ 3.64 crores reported in the corresponding quarter last year (Q1FY23). Its revenue from operations increased by 11.51 per cent to ₹ 43.54 crores in Q1FY24, compared to ₹ 39.05 crores in Q1FY23.
With a market capitalization of ₹ 413.00 crores, Tierra Agrotech is a micro-cap company. It has a negative return on equity of 20.96 per cent and a high debt-to-equity ratio of 6.81. Retail investors hold an 87.75 per cent stake in the company, while its promoters hold a 12.25 per cent stake in it.
The company’s share price has increased by a massive 56 per cent in the past five days. It has recently raised funds by way of a rights issue. The board of directors had approved a rights issue of shares for an amount, including premium, not exceeding ₹ 49.90 crores.
Written by Simran Bafna
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