This chemical company is soaring lately; here's why!
This small-cap is not only trading within its 52-week high zone but also outperforming its benchmark and sectoral index amid this volatility. Let’s find out more about this company!
Sharda Cropchem, which belongs to the S&P BSE SmallCap is engaged in the marketing and distribution of a wide range of formulations and generic active ingredients globally and is also involved in order-based procurement and supply of non-agrochemical products.
The business can be divided into two models:
Agrochemicals segment sells a varied range of formulations and generic active ingredients like fungicides, herbicides, and insecticides to protect various crops and speciality markets and biocides worldwide. It has a diverse product portfolio and focuses on identifying generic molecules, preparing dossiers, obtaining registrations, marketing and distributing formulations or generic active ingredients.
Non-Agrochemicals is involved in the order-based procurement and supply of belts, general chemicals, dyes and dye intermediates. The company sources these non-agrochemical products from Chinese or Indian manufacturers and supplies them to over 30 countries across Europe, North America, Latin America, Australia, and Asia.
For the financial year that ended on 31st March 2022, on a consolidated basis reported revenue from operations increased by 31.8 per cent YoY to Rs 1442.5 crore in Q4FY22 from Rs 1088.13 crore and 49.4 per cent to Rs 3579.8 crore in FY22 as compared to Rs 2395.60 on March 31, 2021. In Q4, the net profit of the company saw a 32.3 per cent YoY increase to Rs 177 crore from Rs 133 crore, reported in the same quarter last year. For Q4FY22, the company recorded an EPS of Rs 19.62 compared to Rs 14.84 for the same quarter last year. They have also recommended a final dividend of Rs 3 per share with a face value of Rs 10 for the year 2021-22.
According to the management, the company is planning to reinforce their sales strategy to reduce dependence on third-party distributors. They are planning to expand their geographical presence by utilization of the existing dossier library. The company is not only expanding its range of new products but also witnessing positive growth in its old products.
In today's trading session, the stock price of Sharda Cropchem rallied by 6.45 and the scrip ended at Rs 743. The stock has a 52-week high of Rs 767.70 and a 52-week low of Rs 287.75.
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