The shares of the agrochemical manufacturer gained up to 10 percent after the company’s subsidiary received a license for the indigenous manufacturer of Haloxyfop R Methyl.
With a market capitalization of Rs 1,692.37 crore, the shares of Best Agrolife Ltd were trading in positive at Rs 719.60 per share, increasing around 8.53 percent as compared to the previous closing price of Rs 661.90 apiece.
Description of Events:-
Such a bullish movement has been seen in the shares of the company after Besy Crop Science Pvt Ltd, a wholly-owned subsidiary of Best Agrolife Ltd, has been granted Licence for indigenous manufacture of Haloxyfop R Methyl Ester Technical 96% w/w min u/s 9(3) by Central Insecticides Board & Registration Committee.
Matter Explanation:
Haloxyfop-R-methyl ester is a post-emergence herbicide extensively utilized to control both annual and perennial grasses. It is commonly applied to various crops, such as soybeans, groundnuts, pulses, and many others.
Previously, the Central Insecticides Board & Registration Committee granted Seedlings India Private Limited, a wholly-owned subsidiary of the company, a license under Section 9(3) to manufacture Chlorantraniliprole 4.5%, Novaluron 11.5%, and Emamectin Benzoate 1.5% SE indigenously.
Financial Condition:-
Looking forward to the company’s financial performance, revenue plummeted by 47 percent from Rs 254 crore in Q4FY23 to Rs 135 crore in Q4FY24 but during the same period, the net loss was magnified by 800 percent from Rs 8 crore to Rs 72 crore.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 37.34 percent in FY22-23 to 16.42 percent in FY23-24, while the return on capital employed decreased from 50.03 percent to 27.66 percent. The net profit margin (NPM) for fiscal year 23-24 is 5.67 percent.
Company Overview:-
Best Agrolife Limited’s unique product offerings cater to the Indian agrochemical industry as well as foreign markets. The company trades agricultural products. It provides crop protection and food safety solutions to its farmers, as well as agricultural services across the world.
Written by:- Abhishek Singh
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