Dharmraj Crop Guard IPO of 10,596,924 equity shares of a face value of ₹10 aggregating up to ₹251.15 Crores. Dharma Crop Guard Limited manufactures, distributes, and promotes a variety of agrochemical formulations to both B2C and B2B customers, including insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics.
To help farmers increase production and profitability, the organisation also offers crop protection products. More than 20 nations in Latin America, East Africa, the Middle East, and Far East Asia are among the destinations for Dharmaj Crop Guard Limited’s exports.
Dharmraj Crop Guard LTD IPO Details
| Dharmaj Crop Guard IPO Dates | 28 – 30 November 2022 |
| Dharmaj Crop Guard IPO Price | INR NA per share |
| Fresh issue | INR 216 crore |
| Offer For Sale | 1,483,000 shares |
| Total IPO size | INR NA crore |
| Minimum bid (lot size) | shares (INR) |
| Face Value | INR 10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Dharmraj Crop Guard LTD IPO Tentative Dates
| Event | Tentative Date |
| Opening Date | Nov 28, 2022 |
| Closing Date | Nov 30, 2022 |
| Basis of Allotment | Dec 5, 2022 |
| Initiation of Refunds | Dec 6, 2022 |
| Credit of Shares to Demat | Dec 6, 2022 |
| Listing Date | Dec 8, 2022 |
Dharmraj Crop Guard LTD Industry Overview
In Q1FY23, agriculture saw growth of 4.5% over the low base of 2.2% growth during the same time in 2012. Despite the interruption brought on by the heatwave, the fourth advance estimates predict that total foodgrain production for the crop year 2021–2022 would reach a record high of 315.72 million tons. However, this year’s irregular rainfall may have an influence on the production of some important Kharif crops, including rice and pulses, which could
Together, Asia Pacific and Latin America accounted for more than 50% of the global market for pesticides in 2021, contributing around 30% of the market’s USD 68 billion total. The two markets that came next were Europe and North America, each of which contributed around 18% of the total revenue for the year, or about USD 24 billion. The Middle East and Africa continued to be the lowest market, making up only 4% of the worldwide pesticides market’s estimated $3 billion in sales.
Dharmraj Crop Guard LTD Company Overview
In addition to its branded products, Dharmraj Crop Guard has 157 trademark registrations. The formulations are offered to clients as branded goods. They have over 118 trademarked formulations available for purchase by farmers as of September 30, 2022. Both locally and abroad, they offer bulk items to institutional clients. Additionally, as of September 30, 2022, they had over 154 institutional items that were offered for sale to more than 600 customers in India and other countries. It exported goods to over 66 clients in 25 countries as of September 30, 2022.
As of September 30, 2022, it has more than 4,362 dealers and 16 stock depots throughout India to service the demand for its branded products from farmers. These locations included Gujarat, Madhya Pradesh, Chhattisgarh, West Bengal, Rajasthan, and Assam. In addition to having a robust retail distribution network, it also has a sales staff of 195 people that approach institutional purchasers with recommendations for reliable items.
Dharmraj Crop Guard LTD IPO Objectives
The funds will be used for the following objectives:
1. Funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat.
2. Funding incremental working capital requirements of the Company.
3. Repayment and/or pre-payment, in full and/or part, of certain borrowings of the Company.
4. General corporate purposes.
Dharmraj Crop Guard LTD Financials
| Particulars | Mar2022 | Mar2021 | Mar2020 | Mar2019 |
|---|---|---|---|---|
| Operational & Financial Ratios | ||||
| Earnings Per Share (Rs) | 11.62 | 12.74 | 6.54 | 25.11 |
| CEPS(Rs) | 13.76 | 9.55 | 5.24 | 4.70 |
| DPS(Rs) | 0.07 | 0.00 | 0.00 | 0.00 |
| Book NAV/Share(Rs) | 34.40 | 34.24 | 21.53 | 52.63 |
| Tax Rate(%) | 25.54 | 25.66 | 25.61 | 28.20 |
| Margin Ratios | ||||
| Core EBITDA Margin(%) | 11.25 | 10.27 | 9.05 | 7.53 |
| EBIT Margin(%) | 10.44 | 9.79 | 8.42 | 6.51 |
| Pre Tax Margin(%) | 9.77 | 9.32 | 7.30 | 5.02 |
| PAT Margin (%) | 7.28 | 6.93 | 5.43 | 3.60 |
| Cash Profit Margin (%) | 8.61 | 7.79 | 6.53 | 5.05 |
| Performance Ratios | ||||
| ROA(%) | 16.48 | 18.95 | 15.38 | 10.56 |
| ROE(%) | 40.62 | 45.68 | 46.83 | 47.71 |
| ROCE(%) | 40.12 | 42.65 | 38.62 | 29.38 |
| Asset Turnover(x) | 2.26 | 2.73 | 2.83 | 2.93 |
| Sales/Fixed Asset(x) | 7.62 | 7.73 | 8.54 | 8.18 |
| Working Capital/Sales(x) | 8.36 | 10.88 | 17.91 | 9.74 |
| Efficiency Ratios | ||||
| Fixed Capital/Sales(x) | 0.13 | 0.13 | 0.12 | 0.12 |
| Receivable days | 56.56 | 41.95 | 46.30 | 44.43 |
| Inventory Days | 49.28 | 42.96 | 39.46 | 39.94 |
| Payable days | 77.17 | 56.68 | 55.59 | 43.60 |
| Valuation Parameters | ||||
| PER(x) | 0.00 | 0.00 | 0.00 | 0.00 |
| PCE(x) | 0.00 | 0.00 | 0.00 | 0.00 |
| Price/Book(x) | 0.00 | 0.00 | 0.00 | 0.00 |
| Yield(%) | ||||
| EV/Net Sales(x) | 0.15 | 0.14 | 0.18 | 0.15 |
| EV/Core EBITDA(x) | 1.31 | 1.32 | 1.92 | 1.94 |
| EV/EBIT(x) | 1.47 | 1.43 | 2.18 | 2.37 |
| EV/CE(x) | 0.28 | 0.33 | 0.39 | 0.45 |
| M Cap / Sales | 0.00 | 0.00 | 0.00 | 0.00 |
| Growth Ratio | ||||
| Net Sales Growth(%) | 30.36 | 52.56 | 42.24 | 0.00 |
| Core EBITDA Growth(%) | 44.09 | 70.66 | 70.15 | 0.00 |
| EBIT Growth(%) | 38.95 | 77.33 | 84.09 | 0.00 |
| PAT Growth(%) | 36.88 | 94.81 | 114.24 | 0.00 |
| EPS Growth(%) | -8.74 | 94.81 | -73.96 | 0.00 |
| Financial Stability Ratios | ||||
| Total Debt/Equity(x) | 0.43 | 0.48 | 0.57 | 1.93 |
| Current Ratio(x) | 1.44 | 1.50 | 1.22 | 1.75 |
| Quick Ratio(x) | 0.85 | 0.71 | 0.67 | 0.95 |
| Interest Cover(x) | 15.73 | 20.87 | 7.46 | 4.37 |
Dharmraj Crop Guard LTD Strengths
- Diversified portfolio of products and consistent focus on quality and innovation.
- Strong R&D capabilities with focus on innovation and sustainability.
- Established distribution network with strong branded products and stable relationship with institutional customers
Dharmraj Crop Guard LTD Weaknesses
- The outbreak of the COVID-19 Pandemic could have a significant effect on our results of operations and could negatively impact its business, revenues, financial condition and result of operations.
- Require certain approvals and licenses in the ordinary course of business, including certain registrations from the Central Insecticides Board and Registration Committee (“CIB&RC”).
- It does not enter into long-term agreements with majority of its customers.
Dharmaj Crop Guard IPO Registrar
Phone: +91-22-4918 6270
Email: dharmaj.crop@linkintime.co.in
Website: https://linkintime.co.in/
Company Contact Information
Dharmaj Crop Guard Limited
Plot No. 408 to 411,
Kerala GIDC Estate, Off NH-8, At: Kerala,
Taluka Bavla, Ahmedabad – 382220
Phone: +91-79-29603735
Email:
Website: http://www.dharmajcrop.com/
Dharmaj Crop Guard IPO Lead Manager(s)
- Elara Capital (India) Private (Past IPO Performance)
- Monarch Networth Capital Ltd (Past IPO Performance)
