Bhagiradha Chemicals hits record high; stock zooms 70% from June low
Shares of Bhagiradha Chemicals and Industries surged 12 per cent to hit a record high of Rs 1,254.60 on the BSE in Friday’s trade, on healthy outlook. The stock the company engaged in manufacture of agro chemicals has bounced back 70 per cent from its low of Rs 736.30 that it had touched on June 21, 2022. It surpassed its previous high of Rs 1,176.95 on April 2022.
The board of directors of the company is scheduled to meet on Monday, August 8, 2022, to consider and approve the financial results for the quarter ended June 30, 2022.
Bhagiradha Chemicals strength is through innovation led product portfolio, well laid out manufacturing capacity, strong in-house research and development, diversified customer base across the globe and competent management bandwidth.
The company’s business development and industries strategy is mainly focused on developing new processes for existing products to optimize costs and non-infringing processes for newly identified off-patent products.
“Opportunities are knocking with the expansion of capacities to cater the rising demand from domestic as well as overseas for the Indian specialty chemicals. The global companies seek to de-risk their supply chains, which are dependent on China,” the company said in FY22 annual report.
The company’s subsidiary, Bheema Fine Chemicals received environmental clearance from the MoEF & CC, Government of India, to manufacture pesticides of 9002 MT per annum. The Karnataka State Pollution Control Board has accorded its consent for establishment recently. Additionally, the company is making sincere efforts for early implementation of the project to augment its much needed capacities.
Meanwhile, after witnessing subdued FY20 marred by production loss caused due to stop production order from AP pollution control board (APPCB) as well as COVID lockdown in March, 2020, the company was able to operate at normal capacities in FY21 post compliance of the directives of APPCB.
For FY22, the company had reported 53 per cent year-on-year (YoY) jump in profit after tax of Rs 35.90 crore as against Rs 23.46 crore in FY21. Revenue from operations grew 37 per cent YoY at Rs 436 crore. The domestic and export sales for the year increased by 34.04 per cent and 47.40 per cent, respectively. Domestic sales growth is largely driven by volume & mix and is broad based.
“Indian farmers are looking for more effective and environment friendly pesticides that can be used in lesser quantities per hectare. As the availability of these items is very low, there is a scope of developing more such products which will benefit all the stakeholders and help the agricultural exports grow,” the company said.