During Monday’s trading session, the shares of one of the fast-growing agrochemical companies for technical manufacturing surged 14 percent on BSE, after India imposed anti-dumping duty on Pretilachlor imports from China.
Price Movement
With a market capitalisation of Rs. 1,754.5 crores, the shares of India Pesticides Limited closed in the green at Rs. 152.35, up by around 10 percent, as against its previous closing price of Rs. 138.45. The stock has delivered negative returns of nearly 27 percent over a one-year period, while around 14 percent of positive returns in the last one month.
What’s the News
According to sources, India has imposed an anti-dumping duty (ADD) on imports of “Pretilachlor” from China. The final duty applies to all forms of “Pretilachlor” and its intermediate, PEDA. This measure is aimed to protect the domestic industry. India Pesticides stands to benefit from the ADD, given the company’s significant production capacity for Pretilachlor in India.
The company initiated the first phase of its backward integration for Pretilachlor Technical, with a capacity of 2,000 TPA, in Q1 FY23. This production took place at their existing Sandila Plant, helping to mitigate potential supply chain challenges related to the imported intermediate. Pretilachlor is a widely used herbicide for protecting rice crops.
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Financial Performance & Ratios
India Pesticides experienced significant growth in its revenue from operations, showing a year-on-year rise of around 13 percent from Rs. 155 crores in Q3 FY24 to Rs. 175 crores in Q3 FY25.
However, its net profit decreased during the same period from Rs. 24 crores to Rs. 16 crores, indicating a decline of around 33 percent YoY. In terms of key financial metrics, India Pesticides has a Return on Equity (RoE) of 7.52 percent and a return on capital employed (RoCE) of 10.6 percent.
About the Company
India Pesticides Limited is engaged in the ‘Agri Chemicals’ business which primarily includes the manufacture, sale and distribution of technical grade insecticides, fungicides, herbicides, biocides, Active Pharmaceutical Ingredients (APIs) and various other agrochemical products. The company has its manufacturing site for agrochemical production at Sandila and Dewa Road in Uttar Pradesh.
Written by Shivani Singh
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