Dharmaj Crop slips 11% in three days; falls below issue price of Rs 237

The stock had recently made a decent debut, with its shares listed at Rs 266 - a 12 per cent premium to its issue price.

Shares of Dharmaj Crop Guard hit a new low of Rs 236.10, down 2 per cent on the BSE in Tuesday’s intra-day trade in an otherwise firm market. The stock has now fallen below its issue price of Rs 237 per share. In comparison, the S&P BSE Sensex was up 0.51 per cent at 62,446 at 12:20 PM.

Share price of the recently listed pesticides & agrochemicals company traded lower for third straight day, declining 11 per cent during the period. It was down 15 per cent from its listing day high of Rs 278.90 on the BSE. The company made its stock market debut on December 8.

Dharmaj Crop had made a decent debut on the bourses with shares listed at Rs 266 per share on the BSE and the National Stock Exchange (NSE), a 12 per cent premium over its issue price.

The issue of Dharmaj Crop Guard was subscribed 35 times on the back of strong response from all categories of investors. The high networth individual category of the IPO were subscribed 52 times, while that of institutional investor portion subscribed 48 times. The retail portion saw 21.5 times subscription.

Dharmaj Crop has a diversified portfolio of products and consistent focus on quality and innovation. They have strong R&D capabilities with focus on innovation and sustainability. The company plans to enhance its manufacturing capabilities through backward integration and expand its product portfolio.

With a vision to create their brand awareness and promote sales of their branded products through digital platform, they have made a strategic investment in an agritech company ‘Khetipoint Pvt Ltd’ which has developed an online digital marketplace platform “Khetipoint” which aims to connect Farmers from across India to their retailers and company experts.

The company’s revenue from operations has grown at a CAGR of 41.02 per cent from FY2020 to FY2022 and Profit after tax (PAT) has grown at a CAGR of 63.30 per cent FY2020 to FY2022.

The company has established a distribution network, strong branded products, and stable relationships with their institutional customers. In addition to this, the government’s aim to reduce dependency on China and improve self- sufficiency is expected to support industry’s backward integration and thus its growth. Pursuant to the setup of this manufacturing facility, profit margins on products would resultantly increase due to backward integration, Anand Rathi Share and Stock Brokers had said in IPO note.