In Friday’s trading session, shares of one of the leading Agro chemical manufacturer, specializing in the manufacturing and distribution of crop protection products, in focus upon signing a marketing agreement with HTF Tech Services to distribute bio-fertilizers in India.
Price action
With a market capitalization of Rs. 99.73 crores on Friday, the shares of Super Crop Safe Limited were trading at Rs.23.85 down by 3.83 percent making a low of Rs. 23.21 per share compared to its previous closing price of Rs. 24.80 per share.
What Happened
Super Crop Safe Limited specializing in the manufacturing and distribution of crop protection products has signed a marketing agreement with HTF Tech Services to distribute its bio-fertilizer products through HTF’s Soil Testing Centres across India.
This partnership is expected to generate sales of Rs 20-25 crores in FY 2025-26, nearly 50 percent of SCSL’s current FY 2024-25 sales target. The collaboration is poised to boost SCSL’s sales and market reach, with HTF Tech’s strong national marketing network and well-established connections
Super Crop Safe, with a long history in crop protection chemicals, operates in multiple states and has a significant distribution network. The agreement aligns with the company’s strategy to achieve its highest sales figures in the coming fiscal year.
About the company
Super Crop Safe Limited is a prominent player in the agricultural industry, specializing in the manufacturing and distribution of crop protection products. The company offers a wide range of agrochemical solutions, including pesticides, fungicides, herbicides, and insecticides, designed to improve crop yield and protect plants from pests and diseases.
Super Crop Safe aims to enhance agricultural productivity while minimizing environmental impact. The company caters to both domestic and international markets, providing farmers with effective solutions to address the challenges of modern farming. Through its dedication to research and development, Super Crop Safe continues to contribute to the growth and sustainability of the global agricultural sector.
Key Insights
Super Crop Safe Limited’s P/E ratio of 31.79, lower than the industry average of 34.0, suggests potential undervaluation. With a PEG ratio of 0.31 and a strong 3-year average revenue growth of 16.04 percent, the company shows promising growth potential, making it attractive.
Financials
The company’s revenue rose by 50.12 percent from Rs 6.41 crore to Rs 12.27 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 0.32 crores to Rs 0.57 crore during the same period.
Key Financial ratios
Super Crop Safe Limited has an impressive Return on Equity (RoE) of 10.85 percent and a Return on Capital Employed (RoCE) of 9.54 percent. Furthermore, the company’s debt-to-equity ratio is 1.24.
Written by Sridhar J
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