Monsanto Looks Up On Healthy Q3 Numbers
Shares of Monsanto India surged for the third straight trading session today with the counter of the pesticides and agrochemical major hitting an 8 per cent upper circuit filter at Rs 426.70. A total of 7,098 shares were traded on the counter.
In the last three trading sessions, the stock has moved higher by 26 per cent from Rs 338.75 on 28 January 2002. Volumes increased from 320 shares to 7,097 in the same period.
Analysts from a local brokerage firm said the rally in the stock is purely due to the impressive December 2001 quarter results posted by the company. Also, there were hopes that agricultural growth pick up further, thereby increasing the demand for the company's products.
Analysts said that following the good quarterly results from most of the companies in the agrochemicals and pesticides sector, the market is re-rating the stocks in the sector.
For the third quarter ended December 31, 2001, Monsanto India posted a 106.65 per cent rise in net profit to Rs 18.33 crore compared with Rs 8.87 crore in the corresponding period last year.
Sales increased by 23.3 per cent to Rs 134.19 crore from Rs 108.85 crore in the December quarter of 2000.
Monsanto India (MIL), earlier known as Monsanto Chemicals of India is a subsidiary of Monsanto Company (now known as Pharmacia Corporation), USA. The company was incorporated in 1949. In 1989, it offered shares to the Indian public to reduce foreign equity holding and to diversify operations.
The company manufactures and markets agricultural and industrial chemicals. It pioneered the chemical weed control concept in India and is a leader in rice herbicides, marketed under the Machete brand. The company also markets Avadex, a herbicide used on wheat crops.
Monsanto's products are marketed all over the country through an effective distributor network.
The parent company has integrated its agriculture business in India with the company. The integration has been done through acquisition of the entire share capital of Monsanto Technologies India, a subsidiary of the parent company.