Stock Under Rs 20: Multibagger Company Soars 8 Per Cent After Credit Rating Revision!
The rally comes on the back of a credit rating revision by ICRA Limited and the company's strong Q3 FY25 performance.
Shares of a Small-Cap agricultural company, Basant Agro Tech (India) Ltd surged 8.15 per cent in today's session, hitting an intraday high of Rs 12.80. The rally comes on the back of a credit rating revision by ICRA Limited and the company's strong Q3 FY25 performance.
ICRA Revises Credit Rating
ICRA Limited has updated the credit ratings for the company as follows:
- Long-term fund-based Term Loan & Cash Credit: Revised from BBB+ (Negative Outlook) to BBB (Stable Outlook)
- Short-term Non-Fund Based: Downgraded from A2 to A3
Q3 FY25 Financial Performance
The company reported an 11 per cent YoY increase in revenue, reaching Rs 81 crore in Q3 FY25, compared to Rs 73 crore in the same quarter last year. EBITDA surged 46 per cent YoY to Rs 5.33 crore, up from Rs 3.64 crore in Q3 FY24, showing significant operational efficiency.
Net profit jumped 135 per cent YoY, turning positive at Rs 0.38 crore versus a loss of Rs 1.08 crore last year. EPS surged 133 per cent YoY, reaching Rs 0.04 from a negative Rs -0.12.
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Stock Performance
While the stock has declined 43.66 per cent over the past year, it has delivered multibagger returns of 306.37 per cent over the past five years. The company’s market capitalization currently stands at Rs 116 crore.
About the Company
Founded in 1990, Basant Agro Tech (India) is a leading manufacturer of agricultural inputs, including hybrid seeds, fertilizers, agricultural plastics, and organic products. It has also expanded into warehousing, cold storage, and LABSA manufacturing.
The company operates multiple business segments:
- Seed Research & Development: Producing hybrid and BT seeds for field and vegetable crops.
- Fertilizer Manufacturing: Granulated NPK and SSP fertilizers.
- Trading of Agricultural Products: Including chemical fertilizers, bio-fertilizers, and seeds.
Additionally, the company has state-of-the-art cold storage and warehousing facilities in Maharashtra, ensuring optimal storage conditions for agricultural products.
With improving financial performance, an upgraded credit rating, this penny stock remains an interesting watch for investors.
Disclaimer: This article is for informational purposes only and not an investment advice.