This seed company continues to create a J curve in its share price

The stock delivered a return of about 100 per cent in just a month.

Shares of Bombay Super Hybrid Seeds opened today at Rs 100.40, up by 5 per cent from the previous closing. The stock has delivered a return of about 100 per cent in just one month and had a J curve in the share price as a result of its good quarterly earnings. For the past three days, the stock is closing above 3 per cent. The company has a market value of Rs 984 crore. 

Bombay Super Hybrid Seeds Ltd processes a variety of agricultural seeds, including groundnut, onion, coriander, cumin, rajka, gramme, wheat, sesame, and others. The company also gives farmers advice on how to boost productivity. Founded as a partnership firm in 2001, the business introduced its own brand, "Bombay Super Seeds," in 2005, and in 2018 it was listed on the NSE. 

The company has produced broadleaf, early cut starts varieties for both the annual and perennial segments, has conducted extensive research and development for lucerne crop seeds, and plans to grow with the possibility for export. 

The topline growth has a three-year CAGR of 37 per cent. The company's TTM sales total Rs 212 crore. The business reported revenue of Rs 194 crore and a net profit of Rs 11 crore for FY22. It has an operating margin of 7.5 per cent. The FY22 June quarter recorded a significant increase of 244 per cent QOQ sequentially. In the June quarter, the company generated revenue of Rs 102 crore. The operating margin for the three months ending in June increased to 8.7 per cent. The net profit increased by 433 per cent QOQ sequentially in the quarter ending in June. 

In FY22, Bombay Super Hybrid Seeds inventories made up 71 per cent of total assets while receivables made up 16 per cent. The receivables increased from 16 to 22 days in FY22. 

The stock is now trading at a PE of 81.9 and has an ROE and ROCE of 30.7 per cent and 18.7 per cent.