High ROE and high ROCE Multibagger Fertilisers & Agrochemicals Stock Under Rs 100; Gains Over 12 Per Cent with a Spurt in Volume by More Than 3.60 Times on BSE
The shares of the company have a PE of 29x, an ROE of 22 per cent and an ROCE of 22 per cent.
On Thursday, shares of Nova Agritech Ltd gained 12.13 per cent to an intraday high of Rs 94.09 from its previous closing of Rs 83.91. The stock also made a fresh new 52-week high is Rs 94.09 and its 52-week low is Rs 45. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 45 per share. The company's shares saw a spurt in volume by more than 3.60 times on BSE. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
Earlier, the board of directors of Nova Agritech Limited approved an investment of Rs 35.28 crores in its wholly-owned subsidiary, Nova Agri Sciences Private Limited. This investment will be made through the subscription of 35,28,650 unsecured optionally convertible debentures (OCDs) of Rs 100 each. The funds will be used by Nova Agri Sciences for working capital requirements and to install a new formulation plant.
Nova Agri Sciences is a company engaged in the manufacturing, distribution, marketing and selling of crop protection products like herbicides, insecticides, fungicides etc. It was incorporated on 12th May 2010 and has been a wholly-owned subsidiary of Nova Agritech Limited since 2017. The company has a presence in 17 states across India and holds GST registration in all of them. It has about 291 molecules registered with Pesticides and aims to expand its business further. This investment by Nova Agritech Limited will help Nova Agri Sciences strengthen its financial position and expand its operations.
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According to the standalone Quarterly Results, the net sales increased by 59 per cent to Rs 57.40 crore and net profit increased by 145.5 per cent to Rs 7.88 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 53.7 per cent to Rs 179.84 crore and net profit increased by 121 per cent to Rs 18.60 crore in FY24 compared to FY23.
According to the consolidated quarterly results, the company reported net sales of Rs 70.77 crore and net profit of Rs 8.28 crore in Q4FY24 compared to net sales of Rs 73.17 crore and net profit of Rs 8.07 crore in Q4FY23. In its annual results, the net sales increased by 20 per cent to Rs 252.47 crore and net profit increased by 38.2 per cent to Rs 28.31 crore in FY24 compared to FY23.
The company has a market cap of over Rs 800 crore and has delivered good profit growth of 42.1 per cent CAGR over the last 5 years. The shares of the company have a PE of 29x, an ROE of 22 per cent and an ROCE of 22 per cent. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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