This small-cap stock from Ashish Kacholia’s portfolio rallied 28.73% in a month; know why?

On August 30, 2022, the renowned investor purchased a 1.3% stake in this pesticides and agrochemicals company. 

A research-driven firm Best Agrolife Limited is one of the fastest-growing agrochemical companies in India. It aims to provide modern, cost-effective, and eco-friendly crop-protection solutions across the globe. The company offers more than 70 formulations of insecticides, herbicides, fungicides, and PGRs from its own in-house backward integrated technical manufacturing. Supported by a robust R&D division, NABL-accredited laboratories, and three world-class state-of-the-art manufacturing units, the company retains a comprehensive portfolio of 360 formulations and more than 80 technical manufacturing licenses.

Consolidated Financial Highlights for Q1FY23:  

The company recorded revenue of Rs 463.7 crore a growth of 34.6% against Rs 344.6 crore in Q1 FY22. On a sequential basis, revenue grew by 49.9%. The EBITDA at Rs 65.9 crore grew significantly by 82.7% against Rs 36.06 crore in the same quarter the previous year. The reported EBITDA margin for the quarter was 14.2% as against 10.5% in Q1FY22. The PBT stood at 53.4 crores, a growth of 53.5% YoY & 8.4% on a QoQ basis. The PAT also registered a robust growth of 54.7% YoY at Rs 240.1 crore in comparison to Rs 25.94 crore reported in the corresponding quarter. 

On 30 August 2022, Ace Investor, Ashish Kacholia purchased 318,000 equity shares, indicating a 1.3% stake in this small-cap company for Rs 30 crore on the NSE. As per the data available on the exchange, Ashish Kacholia bought shares at Rs 940.88 per share. 

During the June quarter, the company launched a first-of-its-kind proprietary ternary insecticidal combination called Ronfen. It is a one-shot remedy that eliminates all sucking pests from a variety of crops, including cotton, vegetables, and many more. The management anticipates a pick-up in the current quarter because the first response has been positive. 

On the valuation front, the stock has a P/E of 34.21x against the industry P/E of 23.60. In the past one month, the stock has rallied 28.73%. On Friday afternoon, 9 September 2022, at 2:08 pm the stock is up by 1.18% and the scrip is trading at 1241. The stock has a 52-week high and low of Rs 1399.70 and 711.90, respectively on BSE.