Dhanlaxmi Crop Surges After Securing 42 Seed Product Rights from Janki Seeds
Dhanlaxmi Crop Science Limited witnessed a 2.4% surge in its stock price on Thursday after making a significant stride in the agricultural sector by acquiring intellectual property rights for 42 seed products from Janki Seeds and Research Pvt Ltd (JSRPL). This move strengthens Dhanlaxmi’s position in the seed industry, enhancing its research capabilities and expanding its product portfolio.
Stock Performance and Market Position
Dhanlaxmi Crop Science, with a market capitalization of ₹97 crore, saw its share price rise to ₹59.4 on the NSE, reflecting a 2.4% increase from its previous close of ₹58. Despite this uptick, the stock remains 46% below its 52-week high of ₹110, recorded on December 17, 2024.
| Market Cap | ₹96.8 Cr. |
|---|---|
| Current Price | ₹59.3 |
| 52-Week High/Low | ₹110 / ₹56.2 |
| Stock P/E | 20.8 |
| Book Value | ₹ – |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 42.8% |
| Return on Equity (ROE) | 33.8% |
| Face Value | ₹10.0 |
| Promoter Holding | 73.1% |
| Price to Book Value | – |
| Debt to Equity | 0.32 |
| Pledged Percentage | 0.00% |
| Industry P/E | 17.9 |
| Graham Number | ₹ – |
| Intrinsic Value | ₹ – |
| Relative Strength Index (RSI) | 43.6 |
| Earnings Per Share (EPS) | ₹5.17 |
| No. of Equity Shares | 1.63 Cr. |
| PEG Ratio | – |
| 200-Day Moving Average (DMA 200) | ₹90.9 |
| Free Cash Flow (3 Yrs) | ₹7.93 Cr. |
| Free Cash Flow (5 Yrs) | ₹ – |
| Debt | ₹7.69 Cr. |
| Return on Assets | 16.9% |
Strategic Acquisition: A Growth Catalyst
Dhanlaxmi Crop Science has entered into an agreement with JSRPL to acquire the intellectual property rights of 42 seed products in a deal valued at ₹1.44 crore. The acquisition consists of:
- ₹84 lakh for per-variety rights (₹2 lakh per variety)
- ₹60 lakh for germplasm rights
This deal provides Dhanlaxmi exclusive access to essential germplasm, breeder seeds, and foundation seeds, which will enhance its research potential and expand its market footprint.
The acquired seeds cover a diverse range of crops, including gram, jowar, maize, sunflower, tomato, wheat, bajra, okra, bottle gourd, brinjal, cabbage, cauliflower, chilli, soybean, and more. With this broad portfolio, Dhanlaxmi is well-positioned to cater to various agro-climatic conditions across India.
Government Approval and Market Expansion
A significant boost to this acquisition is the government’s approval for 40 out of the 42 seed products, allowing production and sales in Maharashtra. Among these, paddy seeds stand out due to their high demand and extensive cultivation in India.
The approval includes:
- 6 research-grade paddy varieties
- 1 hybrid paddy variety
This development ensures quality seed availability for farmers and aligns with Dhanlaxmi’s mission to drive sustainable agricultural growth.
Financial Growth: Strong Revenue and Profitability
Dhanlaxmi Crop Science has delivered impressive financial performance, with revenue and net profit witnessing substantial growth.
| Financial Metric | FY23 | FY24 | Growth % |
|---|---|---|---|
| Revenue from Operations | ₹46.6 Cr. | ₹63.7 Cr. | 37% |
| Net Profit | ₹3 Cr. | ₹4.65 Cr. | 55% |
The company’s financial stability, combined with strategic acquisitions, reinforces its commitment to innovation and expansion in the agriculture sector.
About Dhanlaxmi Crop Science
Established in 2005, Dhanlaxmi Crop Science Limited is a technology-driven seed company specializing in the development, production, processing, and supply of hybrid and open-pollinated seeds. The company offers a diverse range of seeds suited for different agro-climatic conditions, ensuring higher yields and better quality for farmers.
With its latest acquisition, government approvals, and financial strength, Dhanlaxmi Crop Science is set for substantial growth, further cementing its place as a key player in India’s agriculture sector.
Conclusion
Dhanlaxmi Crop Science Limited’s strategic acquisition of 42 seed products from JSRPL marks a significant milestone in its journey. With strong government backing, an expanded product portfolio, and robust financial performance, the company is well-positioned for long-term growth.
As the demand for high-quality seeds increases, this acquisition will enhance agricultural productivity and profitability for farmers while boosting Dhanlaxmi’s market presence. Investors and stakeholders will be watching closely as the company continues to expand and innovate in the seed industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.