Stocks priced under ₹25 are in focus following expectations of a 50% increase in revenue for FY26.
Stocks under ₹25 : expectations of 50% increase in revenue for FY26.During Friday’s trading session, the spotlight was on shares of Super Crop Safe Limited, a leading agrochemical manufacturer specializing in the production and distribution of crop protection products. The company made headlines by signing a marketing agreement with HTF Tech Services to distribute bio-fertilizers in India.
In terms of price action, Super Crop Safe Limited, with a market capitalization of Rs. 99.73 crores, saw its shares trading at Rs. 23.85 on Friday. This represented a decrease of 3.83 percent from the previous closing price of Rs. 24.80 per share, hitting a low of Rs. 23.21 per share.
The agreement between Super Crop Safe Limited and HTF Tech Services will allow the company to distribute its bio-fertilizer products through HTF’s Soil Testing Centres across India. This strategic partnership is expected to enhance the reach and availability of Super Crop Safe Limited’s innovative products in the Indian market.
This partnership is projected to generate sales of Rs 20-25 crores in FY 2025-26, representing nearly 50 percent of SCSL’s current FY 2024-25 sales target. The collaboration is expected to enhance SCSL’s sales and market reach, leveraging HTF Tech’s robust national marketing network and well-established connections.
Super Crop Safe, a key player in the crop protection chemicals industry with a strong presence in multiple states and a significant distribution network, is strategically positioned to achieve its highest sales figures in the upcoming fiscal year through this agreement.
About Super Crop Safe Limited:
Super Crop Safe Limited is a leading company in the agricultural sector, specializing in the manufacturing and distribution of crop protection products. The company offers a diverse range of agrochemical solutions, including pesticides, fungicides, herbicides, and insecticides, aimed at enhancing crop yield and safeguarding plants from pests and diseases.
Super Crop Safe is committed to improving agricultural productivity while minimizing environmental impact. Serving both domestic and international markets, the company provides farmers with effective solutions to address the challenges of modern farming. Through its focus on research and development, Super Crop Safe continues to contribute to the growth and sustainability of the global agricultural industry.
Key Insights:
Super Crop Safe Limited has a P/E ratio of 31.79, which is lower than the industry average of 34.0, indicating potential undervaluation. Additionally, the company boasts a PEG ratio of 0.31 and a robust 3-year average revenue growth of 16.04 percent, highlighting its promising growth potential and overall attractiveness to investors.
Financial Performance:
In the second quarter of the fiscal year 2024-2025, the company experienced a significant increase in revenue, jumping by 50.12% from Rs 6.41 crore to Rs 12.27 crore. Additionally, the net profit also saw a rise from Rs 0.32 crores to Rs 0.57 crore during the same period.
Key Financial Ratios:
Super Crop Safe Limited boasts an impressive Return on Equity (RoE) of 10.85% and a Return on Capital Employed (RoCE) of 9.54%. Moreover, the company maintains a debt-to-equity ratio of 1.24, showcasing a healthy financial position.
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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.