Bharat Rasayan locked in 20% upper circuit post Q1; Profits jump 508% YoY

Shares of Bharat Rasayan locked in 20 per cent upper circuit at Rs 12,808.85 per share on the BSE in Friday’s early morning deals. By comparison the BSE Sensex surged by 0.96 per cent at 79,640 levels. This came after the agrochemicals firm's profits surged many fold in the April-June quarter of financial year 2024-25 (Q1FY25). 

The company’s profit surged 508.2 per cent to Rs 43.1 crore from Rs 7.09 crore, with revenue growing 18 per cent to Rs 282.2 crore. This compares to a revenue of Rs 239.2 crores in the corresponding quarter of the previous year. 

The company’s total expenses increased by 4.5 per cent to Rs 251.39 crore as against Rs 240.22 crore in the year ago period. 

The company’s debt to equity ratio increased to 0.8 per cent in June quarter from 0.2 per cent in Q1FY24, however, it remained flat sequentially. 

Meanwhile, the company’s earning per share (EPS) jumped to 103.77 versus Rs 17.06, rising 508.26 per cent. On a quarterly basis, the EPS slumped by 35.75 per cent from Rs 161.51 per share in Q4FY24. 

The share price of the company has zoomed 43.14 per cent in the last six months, while rallying 39.24 per cent in the last one year.

Bharat Rasayan is presently trading at a price to earnings multiple of 58.43 times, while trading at an EPS of Rs 182.69.

The company specialises in manufacturing technical formulations and intermediates. Founded by SN Gupta and Bharat Insecticides, it produces a range of technical-grade pesticides, including Metaphenoxy Benzaldehyde, Fenvalerate, Cypermethrin Ethyl Ester, and Isoproturon. These products serve as raw materials for pesticide formulation units, which use them to enhance plant protection and boost agricultural productivity.