Dharmaj Crop Guard Restricted IPO Overview – myMoneySage Weblog

Dharmaj Crop Guard Restricted included on January 19, 2015, is an agrochemical firm engaged in manufacturing, distributing, and advertising agrochemical formulations equivalent to pesticides, fungicides, herbicides, plant progress regulators, micro fertilizers, and antibiotics to the B2C and B2B prospects. The corporate additionally engages within the advertising and distribution of agrochemical merchandise to Indian farmers.

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The corporate’s manufacturing facility is situated in Ahmedabad, Gujarat, India. Dharmaj Crop Guard Restricted additionally has analysis and improvement (“R&D”) facilities on the manufacturing facility. As of November 30, 2021, Dharmaj Crop Guard, Restricted had greater than 196 institutional merchandise that they bought to greater than 600 prospects primarily based in India and the worldwide markets. As of November 30, 2021, the corporate exported its merchandise to greater than 60 prospects throughout 20 nations. The corporate’s branded merchandise are bought in 12 states by way of a community comprising over 3,700 sellers accessing 8 inventory depots in India, as of November 30, 2021.

Promoters & Shareholding:

Rameshbhai Ravajibhai Talavia, Jamankumar Hansarajbhai Talavia, Jagdishbhai Ravjibhai Savaliya, and Vishal Domadia are the corporate promoters.

Pre Difficulty Share Holding 100.00%
Submit Difficulty Share Holding 73.03%

Additionally learn : Market Outlook – Nov’22

Public Difficulty Particulars:

Provide on the market: OFS of approx. 1,483,000 fairness shares at Rs. 10, aggregating as much as Rs. 35.15 Cr and contemporary of approx. 9,113,924 fairness shares at Rs. 10, aggregating as much as Rs. 216 Cr.

Complete IPO Dimension: Rs. 251.15 Cr.

Value band: Rs. 216 – Rs. 237.

Goal: For funding capital expenditure, funding incremental working capital, and for compensation and/or pre-payment.

Bid qty: minimal of 60 shares (1 lot) for Rs. 14,220 and most of 14 heaps.

Provide interval: 28th Nov 2022 – 30th Nov 2022.

Date of itemizing: 8th Dec 2022.

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  • Diversified product portfolio.
  • Robust R&D capabilities.
  • The corporate has a longtime distribution community with robust branded merchandise and steady relationships with institutional prospects.
  • Skilled and skilled administration staff.


  • The corporate requires sure approvals and licenses within the odd course of enterprise therefore any failure to efficiently acquire such registrations would adversely have an effect on the outcomes of its operations and monetary situation.
  • The corporate doesn’t enter into long-term agreements with most of its prospects although they’ve repeat orders from prospects.
  • The enterprise is topic to weather conditions and is cyclical.

Subscribe or keep away from?

Sectorial outlook – In the course of the 5 years 2017-2021, the worldwide pesticides market is estimated to have grown at a CAGR of round 2.5% from $62 billion in 2017 to $68 billion in 2021 and this market is estimated to develop at a CAGR of round 1.6%-1.8% in the course of the interval 2022-2027 and is more likely to attain roughly USD 75 billion by 2027. Wanting on the native degree, the output of pesticides in India (which incorporates 42 technical grades) elevated at a CAGR of 8.7% from 213 thousand tonnes in 2017-18 to 295 thousand tonnes in 2021-22. The upward momentum in pesticide business output is anticipated to proceed going ahead backed by progress in meals consumption within the home market amid an anticipated improve in inhabitants, authorities assist in direction of agriculture, demand from export markets, horticulture, and floriculture market amongst others. The penetration of pesticides and agrochemicals in India is low and this poses a chance for progress for agrochemical producers. Along with this, the federal government’s intention to cut back dependency on China and enhance self-sufficiency is anticipated to assist the business’s backward integration and thus its progress. The entire above are anticipated to have a optimistic affect on the sector the corporate is working in the long run.

The financials (income and web revenue) are proven within the graph beneath:

Valuation – For the final 3 years common EPS is Rs. 10.99 and the P/E is round 21.5x on the higher value band of Rs. 237. The EPS for FY22 is Rs. 11.6 and the P/E is round 20.3x. If we annualize Q1-FY23 EPS of Rs. 7.44, P/E is round 7.9x. It has Rallis (27.45x), India Pesticides (18.53x), Punjab Chemical (17.51x), Bharat Rasayan (24x), Astec Lifesciences (45.92x), and Heranba (10.8x) as its listed friends as per the RHP. The corporate’s P/E is between 7.9x and 21.5x. Web margins and EPS have been rising constantly. RONW is round 18.15%. Wanting on the valuation, it appears to be affordable.

Suggestion – The corporate has a diversified portfolio of agrochemical merchandise, a longtime distribution community with branded merchandise, and robust analysis and improvement middle with a high quality management laboratory however the firm remains to be an rising participant when in comparison with its friends. After contemplating all of the elements the itemizing nonetheless appears affordable with good prospects therefore we’d suggest “Subscribe” to this IPO for traders with a money surplus in a medium to long-term perspective.


This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any funding determination.

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