The stock has returned around 100% in just one month.
Shares of Bombay Super Hybrid Seeds opened today at Rs 100.40, up 5% from the previous close. The stock has returned around 100% in just one month and has exhibited a J-curve in the stock price due to its strong quarterly results. Over the past three days, the stock has closed above 3%. The company has a market value of Rs 984 crore.
Bombay Super Hybrid Seeds Ltd processes a variety of agricultural seeds including groundnut, onion, coriander, cumin, rajka, gram, wheat, sesame and others. The company also advises farmers on how to increase their productivity. Founded as a partnership company in 2001, the company launched its own brand, “Bombay Super Seeds”, in 2005, and in 2018 it was listed on the NSE.
The company has produced broadleaf and early-cut varieties for annual and perennial segments, has conducted extensive research and development on alfalfa seeds, and plans to expand with the opportunity to export.
Revenue growth has a three-year CAGR of 37%. The company’s TTM sales total Rs 212 crore. The business reported revenue of Rs 194 crore and net profit of Rs 11 crore for FY22. It posted an operating margin of 7.5%. The June FY22 quarter recorded a significant increase of 244% QOQ sequentially. In the June quarter, the company generated revenue of Rs 102 crore. Operating margin for the three months ending June increased to 8.7%. Net income increased 433% QOQ sequentially in the quarter ending June.
In FY22, Bombay Super Hybrid Seeds inventory accounted for 71% of total assets, while accounts receivable accounted for 16%. Receivables increased from 16 to 22 days in FY22.
The stock now trades at a PE of 81.9 and has an ROE and ROCE of 30.7% and 18.7%.