Two brokerages give 'subscribe' rating to Dharmaj Crop Guard's public issue

"The upward momentum in pesticide industry output is expected to continue going forward, backed by a growth in food consumption in the domestic market amid an expected increase in population, government support for agriculture, demand from export markets, and the horticulture and floriculture markets, among others," Swastika Investmart said in a release.

Citing penetration of pesticides and agrochemicals in India as low, Swastika Investmart said it is an opportunity for growth for agrochemical producers.

"In addition to this, the government's aim to reduce dependency on China and improve self-sufficiency is expected to support industry's backward integration and thus its growth," it added.

According to Anand Rathi, the company's diversification across products and categories has allowed it to de-risk its business operations.

The three-day initial public offering for Dharmaj Crop Guard will open on Monday for subscription and the firm has fixed the price band at Rs 216 to Rs 237 per share. This is reportedly the ninth public issue being launched in November.

Investors can bid for a minimum of 60 shares and multiples of 60 equity shares after that.

The public issue comprises a fresh issue of Rs 216 crore and an offer-for-sale (OFS) of up to 1.48 million equity shares by existing shareholders.

Incorporated in 2015, Dharmaj Crop Guard Limited is an agrochemical company engaged in the business of manufacturing, distributing, and marketing of a wide range of agrochemicals such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers and antibiotics to the B2C and B2B customers.

The company also exports its products to more than 25 countries across Latin America, East African Countries, the Middle East and Far East Asia.

Its revenue from operations grew 30.36 per cent to Rs 394.21 crore for fiscal 2022 against Rs 302.41 crore for fiscal 2021, primarily due to an increase in sales of its branded products, institutional sales and the addition of more dealers and customers, while its net profits grew 36.88 per cent from Rs 20.96 crore in 2020-21 to Rs 28.69 crore in 2021-22. (ANI)