Basic details
Date: 28th Nov to 30th Nov
Price Range: 216 – 237
Lot Size: 60
Min Investment: 12960
Issue Size: 251Cr
Listing date: 8th Dec
Purpose of issue
- Capex Investment
- Repay Borrowings
- General Corporate Purpose
Industry Outlook
- Indian Pesticide Market has grown with a CAGR of 8.7%
- In Upcoming years it is expected to grow by 3.5-4%
- Exports of this sector are also growing at a good pace.
Company's Business
The company sells its material through its 118 Brand formulations. They are also active in both B2B & B2C. The company exports its material in almost more than 25 countries.
Dharmaj Crop Guard has its manufacturing capacity in both Kerala & Ahmedabad, Gujarat.
The company is also in process of Backward Integration, To set up a manufacturing unit for Agrochemical Technicals that will be used for internal consumption as well as for Sales in the domestic & International markets. This is a very good sign for the company
Their main business consists of-
- Insecticides
- Fungicides
- Herbicides
- Plant growth regulator
- Micro Fertilizers
- Antibiotics
Challenges in Business
The agrochemical industry has a huge impact due to Adverse weather conditions Since adverse weather condition has a huge impact on agricultural crops, which may affect the company’s Revenue.
Dharmaj Crop Financials
- Company’s Valuations look slightly Cheaper than Industry Valuation. (As per P/E ratio) This is a good sign for IPO Investors.
- Debt to Equity Ratio is a little high which may reduce after IPO. Since Company will use IPO money to reduce Debt.
- Operating Profit Margin & Net Profit Margin is Normal.
- ROE & ROCE looks very strong. Which is a very good sign for Company.
- 3 Years Sales & Profit CAGR is very High. This is a sign that the company has grown rapidly in past few years. However, it will be difficult for the company to grow at the same rate.
You can look at financial data for the last 5 years in the table below
Promoters holdings
IPO subscription Data
Conclusion
Overall financials look strong for long term. You may also apply for listing gains. (As of Today GMP is more than 20%, which keeps changing)
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