Incorporated
in 1993, Indogulf Cropsciences is engaged in the business of manufacturing of
crop protection products, plant nutrients and biologicals in India. It has,
over the span of three decades, diversified its product portfolio and have
grown into multi-product manufacturer of crop protection, plant nutrients and
biologicals in India. Its product portfolio has expanded from 198 products in
fiscal 2022 to 262 products in December 31, 2024, consisting of products that
it manufacture using in-house innovative processes, which enable it to cater to
a wide range of customers in domestic and international markets. The company
currently had 225 trademarks, eight copyrights and six design registrations for
its logo and branded products and has 150 valid product registrations across 17
foreign countries. Further it has applied for 110 trademarks. It is also a
growing exporter of crop protection, plant nutrients and biologicals products
and exported products to over 34 countries. It has been recognised as a ‘Two
Star Export House’ by Government of India.
The company
currently has four manufacturing facilities including formulation, technical
and fertilizer plants having international quality standards located in Samba,
Jammu and Kashmir; Nathupur - I, Haryana; Nathupur - II, Haryana; and Barwasni,
Haryana, collectively, spread across approximately twenty acres with an effective
installed capacity of 19295 tonne. Its manufacturing facilities are ISO 9001:
2015 and ISO 14001: 2015 certified, for quality management system and
environment management system. Samba,
Jammu and Kashmir plant has a capacity of 3130 tonne while Nathupur - I,
Haryana plant has a capacity of 10125 tonne, Nathupur- II, Haryana plant has a
capacity of 1020 tonne and Barwasni, Haryana plant has a capacity of 5020
tonne.
The company
sell its products in water dispersible granules, suspension concentrate, powder
and liquid form to customers. The four manufacturing facilities having an
aggregate installed capacity of 19,620 KL for liquid suspension concentrate,
27,930 MT for granules and 1,980 MT for powder, as on April 30, 2025. The
technical plant has aggregate capacity of 1,360 TPA for production of
insecticides, fungicides and herbicides, as on April 30, 2025. Each of its
manufacturing facilities has the ability to manufacture a wide range of
products and products can be inter-changed to address the requirements of
customers.
The company
primarily operate under three business verticals namely crop protection, plant
nutrients and biologicals, to retail and institutional customers focused on
improving the crop yield. Crop protection formed 90.15% of total revenues in
9MFY2025 while plant nutrients formed 3.93% and biologicals formed 5.92%. It
manufacture and market extensive range of products in all types of available
formulations such as water dispersible granules (WDG), suspension concentrate
(SC), capsule suspension (CS), ultra low volume (ULV), emulsion in water (EW),
soluble granule (SG), flowable suspension (FS), etc. which can be in powder,
granules and liquid form to its customers. Its diverse product portfolio caters
to a broad spectrum of crops, including cereals, pulses and oilseeds, fibre
crops, plantations, and fruits and vegetables. The products are designed to
improve crop yield while promoting sustainable agriculture and environmental
stewardship.
Plant
nutrients are aimed at enhancing the soil fertility, stimulate root development
and boost crop yields. It manufactures various types of speciality fertilizers,
deficiency corrector, and micronutrients under this vertical. These products
are designed to strengthen the plants and enhance their yields.
Crop
Protection Products refers to the various practices, techniques, and strategies
employed to safeguard crops from pests, diseases, weeds, and other threats,
thereby ensuring their healthy growth, development, and productivity. It aims
to minimize yield losses and maintain crop quality while minimizing negative
environmental impacts. Under this vertical, it manufactures and offers a
variety of insecticides, fungicides, herbicides and plant growth regulators.
Crop protection products also include technical synthesis andspecial
formulations.
Biologicals
empower farmers with a comprehensive approach to crop management, offering
novel solutions to combat pests and diseases, build resilience against abiotic
stress, and unlock improved nutrient use efficiency. It also mitigates the
impact of environmental stresses, and optimize nutrient uptake and soil
well-being, driving progress toward a more sustainable food system ultimately
leading to more resilient and sustainable agricultural practices.
The company
has a pan-India sales and dealer presence in 22 states and three Union
Territories in India and over 34 countries outside India. As of April 30, 2025,
it distribute its products through its distribution network comprised of 192
institutional business partners (b2b), 6,916 working domestic distributors
(b2c), supported by 17 stock depots and 6 sales/branch offices supporting the
distribution of its products in India and 143 overseas business partners
optimizing product distribution in over 34 countries.
The key raw
materials that it use in manufacturing operations include, among others, 3
Methyl 4 Nitro Iminoperhydro 1,3,5 Oxadiazine (MNIO), 2-Chloro-5-Chloro Methyl
Thiazole (CCMT), Glyphosate Tech., CIX,
3-BROMO-1-(3-CHLOROPYR-2-YL)-1H-PYRAZOLE-5-CARBO ACID (BPCA) in technical
Thiomethoxam, Bifenthrin, Pretilachlor, Lambda Cyhalothrin, seaweed, potassium
humate, ferasulphute, zinc sulphate in formulation. It primarily source the raw
materials for manufacturing process through both its internal backward
integration and external suppliers in India and globally.
The company
has two subsidiaries, IndogulfCropsciences Australia Pty Ltd located in
Australia and Abhiprakash Globus Private Limited located in India.
IndogulfCropsciences Australia Pty Ltd helps it to get registrations in the
countries which required OECD registered products and Abhiprakash Globus
Private Limited facilitates to expand its market reach, drive growth, and open
new avenues for business development in domestic as well as overseas markets
while optimizing resource use and fostering healthy competition
Om Prakash
Aggarwal, Sanjay Aggarwal, Anshu Aggarwal and Arnav Aggarwal are the promoters
of the company.
The Offer and the Objects
The offer comprises of fresh issue of up to
14414414 equity shares at the upper price band of Rs 111 and 15238095 equity
shares at the lower price band of Rs 105 aggregating Rs 160 crore and an offer
for sale up to 3603603 equity shares aggregating Rs 40 crore at the upper price
band of Rs 111 and Rs 38 crore at the lower price band of Rs 105.
The company proposes to utilise the net
proceeds from the issue towards funding working capital requirements of the
company amounting Rs 65 crore, repayment/ prepayment, in full or in part, of
certain outstanding borrowings availed by the company amounting Rs 34.117
crore, capital expenditure of the company for setting up an in-house dry
flowable (DF) plant at Barwasni, Sonipat, Haryana amounting Rs 14 crore and the
balance towards general corporate purposes. Dry flowable formulation is a type
of pesticide formulation where the active ingredient is finely ground and mixed
with inert materials to create a dry, free-flowing powder
As on April 30, 2025, the company had a total
sanctioned limit of working capital facilities of Rs 264.075 crore on a
standalone basis. Further it had outstanding borrowings of Rs 256.821 crore ona consolidated basis.
The total estimated cost of funding the purchase
of new equipment and machinery and availing services to set up the DF Plant is
Rs 14 crore
Promoter group Om Prakash Aggarwal (HUF) post
offer shareholding will decrease to 0% from pre offer shareholding of 3.16%
while promoter group Sanjay Aggarwal (HUF) post offer shareholding will
decrease to 0.4% from pre offer shareholding of 4.74%
Strengths
The company
has 138 products in the pipeline for registration in domestic and overseas, and
17 products under manufacturing. In addition, its diversified product portfolio
allows for limited dependence on individual products, helps counter seasonal
trends and addresses different business cycles across industries where its
products are used. Further, its leadership position in key products offers
advantages such as cost efficiency due to economies of scale, competitive
product pricing, ability to scale its business, ensure customer loyalty and
expand product pipeline into new end-uses.
The company
facilities are multi-purpose that are designed to allow a level of flexibility
enabling it to manufacture a diverse range of products and provide it with the
ability to modify and customize its product portfolio to address the changing
requirements of customers.
The company
facilities enjoy close proximity to agricultural states such as Haryana, Jammu
and Kashmir, Punjab, Uttar Pradesh, Rajasthan and Uttarakhand. its facilities
are strategically situated near Delhi, a major transportation hub with access
to highways, dry ports, and airports. This strategic positioning ensures
seamless connectivity and efficient logistics operations, facilitating timely
and cost-effective transportation of raw materials and finished goods.
The company
has adopted backward integration to strengthen supply chain control, lower costs,
and boost operational efficiency by producing key raw materials and active
ingredients in-house. This supports its long-term growth strategy and enhances
margin resilience.
The company
has developed strong in-house R&D capabilities, integral to its product
diversification and manufacturing efficiency. Its dedicated NABL accredited
R&D laboratory, located at the Nathupur (Haryana) facility, is certified
under ISO/IEC 17025:2017, supporting the development of new products and
process improvements aligned with global regulatory standards.
The
production of agri-inputs in India increased at a CAGR of 16.4% from 689
thousand tonnes in 2019 to 1,354 thousand tonnes in 2024. Pesticides
constituted almost 57% share in overall agri-inputs production and are projected
to grow by CAGR 3.6% during the period, 2024-2029. The usage of pesticides has
been increasing over the years. The demand is driven by the country’s
agricultural activities. Insecticides, fungicides, and herbicides are generally
used for pest control in agriculture. In order to protect the crop from losses
due to pests, farmers employ these chemical substances. Further, the overall
agri-inputs production during the forecast period 2024-2029 is projected to
grow with a CAGR of 6.9% on account of rising demand for agricultural use.
The demand
for nutrition & crop protection chemicals across different applications in
India is going to grow swiftly on account of rapid population growth, increased
pest infestations, and decreased crop yields. Whereas the demand for cereals
and grains is expected to grow at a good pace over the years at a CAGR of 9.5%
during the forecast period, 2024-2029. On the other hand, the demand for fresh
fruits & vegetables and oilseed & pulses is projected to grow with a
CAGR of 10.1% and 10.7%, respectively, during the same period.
Weaknesses
The company
is subject to regular inspections and audits, and the success and wide
acceptability of its products is largely dependent upon quality controls and
standards.
The
agrochemicals industry is capital intensive. It require a substantial amount of
capital and will continue to incur significant expenditure in maintaining and
growing its existing infrastructure, purchase equipment and develop and
implement new technologies in new and existing manufacturing facilities
The company
had reported negative cash flows from operating activities in the past and may,
in the future, experience negative cash flows.
The company
business is sensitive to weather conditions such as drought, floods, cyclones
and natural disasters, as well as events such as pest infestations.
The company
is required to obtain and/or renew certain registrations from the Central
Insecticides Board and Registration Committee (CIB&RC) for its products
manufactured in India. It also register its products in overseas jurisdictions
through International Distribution Partners to enable exports to such
countries. Any failure to successfully registerproducts in
India or in the international markets may affect results of operations and
financial condition.
The company
is required to obtain, renew or maintain statutory and regulatory permits,
licenses and approvals to operate its business and manufacturing facilities,
and any delay or inability in obtaining, renewing or maintaining such permits,
licenses and approvals could result in an adverse effect on results of
operations.
The company
operate in a hazardous industry and is subject to certain business and
operational risks consequent to its operations, such as, the manufacture, usage
and storage of various hazardous substances
Alternative
plant supplements and crop protection measures, such as, biotechnology
products, pest resistant seeds or genetically modified crops may reduce the
demand of its products
The company
manufacturing facilities are concentrated in the northern region of India and
the inability to operate and grow its business in other regions may have an
adverse effect on business, financial condition, results of operations, cash
flows and future business prospects.
The company
face competition from both domestic as well as multinational corporations and
its inability to compete effectively could result in the loss of customers,
therefore, its market share, could have an adverse effect on its business,
results of operations, financial condition and future prospects.
Valuation
Net sales
increased 12% to Rs 464.19 crore in 9M FY2025 compared to 9M FY2024. The OPM
fell 10 bps to 9.4%, leading to 11% increase in operating profit to Rs 43.44
crore. OI increased 37% to Rs 2.12 crore. Interest cost rose 7% to Rs 10.37
crore. Depreciation cost went down 8% to Rs 7.14 crore. PBT was up 21% to Rs
28.05 crore. Tax expenses rose 169% to Rs 7.71 crore. As a result, net profit
jumped 42% to Rs 21.68 crore.
Net sales
remained flat at Rs 552.23 crore in FY2024 compared to FY2023. The OPM improved
190 bps to 10.8%, leading to 22% improvement in operating profit to Rs 59.41
crore. OI increased 40% to Rs 3.55 crore. Interest cost rose 11% to Rs 12.95
crore. Depreciation cost went up 7% to Rs 10.31 crore. PBT rose 32% to Rs 39.71
crore. Tax expenses were down 1% to Rs 7.81 crore. As a result, net profit
increased 26% to Rs 28.23 crore.
The TTM EPS
on post-issue equity works out to Rs 5.5. At the upper price band of Rs 111,
TTM P/E is 20.
As of 24
June 2025, its listed peers such as Aries Agro trades at TTM P/E of 12, Basant
Agro Tech India trades at TTM P/E of 14, Best Agrolife trades at TTM P/E of 39,
Bhagiradha Chemicals & Industries trades at TTM P/E of 173, Heranba
Industries trades at TTM P/E of 27, India Pesticides trades at TTM P/E of 39
and Dharmaj Crop Guard trades at TTM P/E of 30
For FY2024,
IndogulfCropsciencesEbitda margin and ROE stood at 10.1% and 12.% compared to
10.7% and 7.1% for Aries Agro respectively, 6.1% and 2.3% for Basant Agro Tech
India, 12.1% and 16.4% for Best Agrolife, 10.5% and 4.4% for Bhagiradha
Chemicals & Industries, 6.1% and 4.1% for Heranba Industries, 12.7% and
7.3% for India Pesticides and 9.6% and 12.4% for Dharmaj Crop Guard
IndogulfCropsciences:Issue
Highlights
|
Fresh
issue (in Rs crore)
|
160
|
For Fresh
Issue Offer size (in number of shares )
|
|
- in Upper price band
|
14414414
|
- in Lower price band
|
15238095
|
Offer for
sale (in number of shares)
|
3603603
|
Offer for
sale (in Rs crore )
|
|
- in Upper price band
|
40
|
- in Lower price band
|
38
|
Price Band
(Rs)
|
105-111
|
Pre issued
capital (Rs crore)
|
48.79
|
Post issue
capital (Rs crore)
|
63.20
|
Pre issue
promoter shareholding (%)
|
96.87
|
Post issue
Promoter shareholding
|
69.07
|
Bid Size
(in No. of shares)
|
135
|
Issue open
date
|
26-06-2025
|
Issue
closed date
|
30-06-2025
|
Listing
|
BSE,NSE
|
Rating
|
45/100
|
IndogulfCropsciences:
Consolidated Financials
|
Particulars
|
2203 (12)
|
2303 (12)
|
2403 (12)
|
2312 (09)
|
2412 (09)
|
Total
Income
|
487.21
|
549.66
|
552.23
|
413.40
|
464.19
|
OPM
|
9.7
|
8.9
|
10.8
|
9.5
|
9.4
|
Operating
Profits
|
47.16
|
48.88
|
59.41
|
39.11
|
43.44
|
Other
Income
|
3.02
|
2.53
|
3.55
|
1.55
|
2.12
|
PBIDT
|
50.18
|
51.41
|
62.96
|
40.65
|
45.56
|
Interest
|
6.03
|
11.65
|
12.95
|
9.67
|
10.37
|
PBDT
|
44.15
|
39.76
|
50.01
|
30.98
|
35.18
|
Depreciation
|
8.60
|
9.61
|
10.31
|
7.73
|
7.14
|
PBT
|
35.55
|
30.15
|
39.71
|
23.25
|
28.05
|
Share of
Profit/loss of JV
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
PBT Before
EO
|
35.55
|
30.15
|
39.71
|
23.25
|
28.05
|
EO
|
0.08
|
0.16
|
-3.67
|
-5.09
|
1.34
|
PBT after
EO
|
35.63
|
30.31
|
36.04
|
18.16
|
29.38
|
Provision
for Tax
|
9.27
|
7.89
|
7.81
|
2.87
|
7.71
|
Profit
after Tax
|
26.36
|
22.42
|
28.23
|
15.29
|
21.68
|
PPA
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
Net profit
after PPA
|
26.36
|
22.42
|
28.23
|
15.29
|
21.68
|
MI
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
Net profit
after MI
|
26.36
|
22.42
|
28.23
|
15.29
|
21.68
|
EPS (Rs)*
|
4.2
|
3.5
|
4.5
|
#
|
#
|
*EPS
annualized on post issue equity capital of Rs 63.2 crore of face value of Rs
10 .each
|
# Not
annualised due to seasonality of business
|
Figures in
Rs crore
|
Source:
Capitaline Corporate Database
|
|