Shares of this micro-cap company clocked 5 percent upper circuit on Thursday’s trading session after they announced receiving an order to supply agricultural seeds. The share has delivered more than 60 percent returns to its shareholders in 6 months.
With a market capitalisation of Rs. 178 crores, the shares of Nirman Agri Genetics Ltd started Thursday’s trading session on a higher note at Rs. 296 compared to its previous close of Rs. 284.10. The shares hit a 5 percent upper circuit at Rs. 298.30, which is also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing mentioned that they had received a purchase order to supply Agricultural Seeds worth Rs. 41,10,297 from Bhagawati Krishi Seva.
Looking at the company’s financial statements, the revenue magnified by 112 percent from Rs. 13.49 crores in FY21-22 to Rs. 28.61 crores during FY22-23. In addition, the net profits zoomed by 57 percent from Rs. 2.56 crores to Rs. 4.01 crores during the same timeframe.
The company gets revenue from multiple sources, 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, Pesticides, and Bio-organic.
Written By Vaibhav Patil
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