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SHARDA CROPCHEM LTD

COMPANY PROFILE              ch

Incorporated in the year 1987, Sharda Cropchem is a fast growing global agro-chemical company. The business was first established as Sharda Worldwide Exports Private Limited in 2004. Later, the company changed its name to Sharda Cropchem Private Limited and thereafter it was converted into a Public Limited company. The company manages two production verticals - agrochemicals and non-agrochemicals, which consists of manufacturing and export of dyes, dye intermediates, pesticides and agrochemicals. At present, the company has made profound penetration in the highly developed European and US market which are categorized as high entry barrier territory. It is also significantly present in other regulated markets such as Latin America and other parts of the world.

CHEMICAL AND AGRO-CHEMICALS INDUSTRY IN INDIA           

·       Chemical industry in our country consists of over 80,000 commercial products.  India’s chemicals industry is de-licensed, except for a few hazardous chemicals.  The industry is likely to reach $ 304 billion (approximately) by 2025 at a CAGR of 9.3%, fuelled by increasing requirements in the end-user section for specialty chemicals and petrochemicals segment. 

·       Specialty chemicals demand comprises 22% of the total chemicals and petrochemicals market in our country. The petrochemicals demand is likely to record a 7.5% CAGR between 2019 and 2023, with a considerable growing demand for polymers, despite of COVID-19 pandemic.

·       The agrochemicals market in India is likely to mark out 8% CAGR to reach $ 4.7 billion (approximately) by FY25.  Our country’s position at present is 14th in exports and 8th in imports of chemicals (excluding Pharma) worldwide.

 

 

 

 

 

·       Globally, India is the fourth-largest producer and exporter of agrochemicals after some of the top nations like the United States, Japan and China and the thirteenth-largest exporter of pesticides and disinfectants. Our exports have augmented on the account of low-cost manufacturing, ease of use of technically trained manpower, seasonal home demand and overcapacity, cut-throat pricing and strong occurrence in generic pesticide manufacturing.

·       In October 2020, the government recommended that players in the agrochemicals industry come out with new molecules of global standards for the farmers' benefit. The current GST on agrochemicals is 18%.  CropLife India, a non-profit industry body, in January 2021, insisted the government to reduce GST as this will help to have lesser prices of agrochemicals and assist farmers. Under the Union Budget 2022-23 the government allocated ` 209 crores ($ 27.43 million) to the Department of Chemicals and Petrochemicals.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VALUATION

INDUSTRY	AMOUNT IN RS.
SECTOR	CHEMICALS / AGRO CHEMICALS
FACE VALUE	10
BOOK VALUE	212
MKT.CAP (CRORE)	6319
CLOSING PRICE AS ON ( 25 / 05 / 22)	700
52 WEEK H / L	769 / 286
5 YRS H / L	767 / 99
DIVIDEND YIELD	0.86%
SECTOR PE	41
TRAILING TWELVE MONTHS PE	18
TRAILING TWELVE MONTHS EPS	39
PRICE BOOK VALUE	3.31
BSE CODE	538666
NSE CODE	SHARDACROP

 

 

 

 

 

 

BALANCE SHEET AND INCOME STATEMENT

EQUITY AND LIABILITIES PARTICULARS (RS.CR)	MAR ’ 22	MAR ’ 21	MAR ’ 20	MAR ’ 19	MAR ’ 18
EQUITY SHARE CAPITAL	90.22	90.22	90.22	90.22	90.22
TOTAL RESERVE & SURPLUS	1,641.37	1,412.46	1,220.65	1,082.92	974.92
TOTAL CURRENT LIABILITIES	1,560.71	1,077.45	793.45	770.85	937.31
TOTAL ASSETS	3,430.68	2,689.83	2,191.56	2,040.22	2,074.68
9 MONTHS RESULTS PARTICULARS ( RS.CR)	DEC ’ 21	DEC ’ 20	DEC ’ 19	DEC ’ 18	DEC ’ 17
TOTAL INCOME FROM OPERATIONS	1,714.28	1,040.97	842.93	935.34	764.04
BASIC EPS	16.77	10.54	6.15	6.22	9.18
NET PROFIT	151.27	95.14	55.46	56.11	82.87

 

 

 

 

SHARE HOLDING PATTERN

SHAREHOLDING PATTERN (MARCH  2022)	% HELD
PROMOTERS	75
FII/FPI	02
DII	13
PUBLIC	11

 

 

 

 

 

 

 

 

COMPANY PERSPECTIVE AND REVIEW

·       On strong volume expansion across sections, advanced realisation and a better product blend, Sharda's revenue has amplified on a chronological basis. Further, the company is escalating its range of products at each region for future growth.

·       For the quarter that ended in March 2022, Sharda Cropchem accounted 32% year on year (YoY) growth in profit after tax approximately, whereas proceeds increased 32% (YoY) as well approximately, led by improved product mix and price realization.

·       Meanwhile, strong global agri-demand, successful price supervision slightly settled off by higher cargo charge, a strong balance sheet, free cash-flows and strong return ratios over FY22-23 make the stock look positive for the investors in the long run.

·       Shares of Sharda Cropchem have outperformed and have been giving higher returns for the past few months. Various brokers are further bullish on the stock and gives a BUY rating.