This Small Cap Agrochemicals Co. Hit Fresh High After Robust Q3 Results

Shares of pesticides and agro-chemicals sector company Sharda Cropchem in intra-day trade on January 24, 2022 surged to a record high price of Rs. 455 apiece on the NSE. The scrip logged 19.95% gains after its stellar Q3Fy22 earnings.

In the December ended quarter, the company's net profit more than doubled to Rs. 102 crore as against Rs. 48.3 crore in the same quarter a year ago. Also, the company's revenue recorded a growth of over 78% YoY owing to robust growth in volume across geographies as well as improved product line and price realisation. Furthemore, EBITDA at the firm grew to 22.8% in the December ended quarter, expanding 220 bps YoY.

The company declared an interim dividend of Rs. 3 per share for the fiscal year 2022. Record date for the same has been fixed as February 2, 2022. The interim dividend shall be paid or dispatched on or before March 01, 2022, the company said.

As for the shareholding, promoter shareholding is the highest at 74.82% in the company. Mutual funds in the December ended quarter pared stake by 0.8% to 12.75% stake, on the other hand FIIs during the same period raised the stake to 1 percent.

Brokerage firm Anand Rathi in its report dated December 30, 2021 has given a 'Buy' call on the stock of Sharda Cropchem for a target price of Rs. 480. "Powered by its focus on registering formulations and active ingredient across regions, Sharda's strong growth would continue. A strong pipeline and distribution network would add to growth.

Internally funded capex and FCF generation would strengthen its balance sheet, resulting in higher return ratios," said the brokerage in its report.
At 1:45 pm, the stock traded at Rs. 432.65, up over 14%.

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