On Wednesday, the micro-cap stock rose 9 percent to its intraday high of Rs 258.3 from its previous close of Rs 258.30 after the company entered an agreement with Agrolife Science.
According to the Nirma Agri Genetics Limited filing, the company has entered into a Memorandum of Understanding (MOU) with Agrolife Science to strengthen the company’s portfolio in various products and varieties, which will aid in the expansion of new markets.
Furthermore, the company has stated that this agreement allows the company to expand geographically and tap a large market, ultimately benefiting the company’s top line and bottom line. They estimate a minimum annual addition of 15 crores to the top line.
Looking at the financials of Nirman Agri Genetics Ltd report, the net revenue increased by 17 percent quarter-on-quarter, from Rs 11.03 crore in Q1FY24 to Rs 12.94 crore in Q2FY24.
However, the company’s net profit increased by 16 percent quarter-on-quarter, from a net profit of Rs 1.81 crores in Q1FY24 to a net profit of Rs 2.1 crores in Q2FY24.
Nirman Agri Genetics Ltd is a microcap company with a market capitalization of 168 crores. The share price has risen 106 percent and 155 percent in a year. For instance, if an investor invested Rs 1 Lakhs the current value would be 2.55 lakhs.
The company has a lower price-to-equity ratio of 38 compared to its peers, it also has a low debt-to-equity ratio of 0.04, with a 3-year average return on equity of 100, and 3 3-year average return on capital employed of 55 percent.
Also, the company has a net profit margin of 14 percent, a good current ratio of 4.2, and a quick ratio of 2.05 additionally they have reduced their debtor days from 74 to 51 days.
The promoter of the company holds 66 percent of the company stake and the general public holds 34 percent of the company stake.
Nirman Agri Genetics Limited, founded in 2020, is an organized Agri-Input Company in India. The company manufactures, processes, and sells high-quality hybrid seeds, pesticides, and bio-organic fertilizers.
Written by Sriram KV
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