BASANT AGRO MULTIBAGGER POTENTIAL STOCK Date 09|12|Y2023

Introduction

BASANT AGRO MULTIBAGGER POTENTIAL STOCK: Basant Agro Tech was started as a joint initiative between the “Bhartia group” based in Akola, Maharashtra and Mr. C.L.Jhunjhunwala.

Its business activities are mainly focused on fertilizers and seeds. For more info check, http://www.krishisanjivani.com

The company is managed by the Bhartia family who are well versed and experienced in the field of agriculture with a track record exceeding 2 decades. Their brand name “Krishi Sanjivani” is well accepted by farmers and the company has established a robust distributor network.

PRESENT DAY NUMBERS

CMP on Day18 December2023: Rs 22 Market cap: 202 crores BV: 18 FV: 1
Revenue FY23: 565 cr (FY22 466 cr) Net profit: 19 cr (FY22 18 cr) EPS: 2.03 (FY22: 2.10)

MULTIBAGGER POTENTIAL

1. The seeds division contributes to approximately 30% of the over all revenue and 40% of the net profit. The future scope is immense.
2. This division is headed by Dr. B.G.Bathkal, ex-Chancellor of PDKV university, and he is a pioneer in this field with several achievements to his credit.
3. The company has undertaken a major expansion in one of its SSP fertilizer unit to increase the capacity substantially; the result will show in the top line and bottom line over the next few quarters
4. Agriculture accounts for approximately 14% of the nation’s GDP and 11% of its exports
5. About half of the population of India still relies on agriculture as its principle source of income.
   6 Agriculture is also a source of raw material for a large number of industries.

IMPORTANT INFO

1. Steady PROFIT growth over last 9 years
   REVENUES: FY2019 (7 cr); FY2020 (8 cr); FY2021 (9 cr); FY2022 (19 cr); FY2023 (18 cr)
2. Consistent REVENUE over last 9 years
   NET PROFIT: FY2019 (283 cr); FY2020 (290 cr); FY2021 (329 cr); FY2022 (466 cr); FY2023 (565 cr)

MY TAKE:
Agriculture will continue to be closely aligned to the progress of India as a country, and economy, for at least the next 2 – 3 decades.

If India has to grow and prosper, then utmost importance needs to be given to agriculture. Almost all the state governments and the central government recognize this fact.

Good quality seeds and suitable fertilizers are of prime importance to this development and success.

Conclusion:

Basant has a well established, and positioned, fertilizer division and a fast growing seed division.

The company is adequately equipped to play an integral part of the India growth story through its contribution towards the agriculture sector.

Based on the tremendous future growth potential, the company is deeply undervalued at current levels.

A robust potential Multibagger!!

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