In Wednesday’s trading session, the shares of a company engaged in the manufacturing of agricultural products hit a 5% upper circuit to Rs. 45.54 on BSE, after the company announced entering into a Joint Development Agreement and reporting financial results for Q1 FY24-25.
With a market capitalization of Rs. 155 crores, the shares of Saptarishi Agro Industries Limited opened at Rs. 45.54, as against its previous closing price of Rs. 43.38.
Is Saptarishi Agro Industries a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25, through the recent filings with the BSE on Tuesday post-market hours.
The company’s revenue from operations for Q1 FY24-25 stood at Rs. 6 crores, marking a 34.8 percent YoY rise from Rs. 4.45 crores in Q1 FY23-24, but a 62 percent decline quarter-on-quarter from Rs. 15.8 crores in Q4 FY23-24.
The net profit jumped by 250 percent YoY to Rs. 0.07 crores in Q1 FY24-25, as against Rs. 0.02 crores in Q1 FY23-24, but on a quarter-on-quarter basis, it fell by 96 percent from Rs. 1.8 crores in Q4 FY23-24.
Further, Saptarishi Agro Industries Limited signed a Joint Development Agreement with VIP Foundation and Knight Frank (India) Private Limited for the construction and development of immovable property.
Under this agreement, the VIP Foundation will handle the development of ~24.01 acres of land by constructing residential and commercial purposes.
The project will be developed in phases, with a minimum selling price ranging from Rs. 1,300 to Rs. 1,500 per sq.ft. and is expected to be completed within 25 months.
Additionally, the company’s Board has approved the launch of its Frozen Fruits & Vegetables Processing Project. This initiative involves procuring fruits and vegetables from farmers/stockists/APMCs, processing them, and then selling the frozen products to buyers.
Saptarishi Agro Industries aims to target the top 20 companies dealing in Food & Dairy Products. The proposed expansion includes a capacity addition of ~1,000 kilograms per hour, with an investment of Rs. 11 crores.
Stock performance:
The shares of Saptarishi Agro Industries have delivered multibagger returns of nearly 184.6 percent in one year as well as around 104.5 percent returns year-to-date.
About the company:
Incorporated in 1992, Saptarishi Agro Industries Limited, a JV with the Tamil Nadu (NS:TNNP) Industrial Development Corporation (TIDCO), is engaged in the business of manufacturing mushrooms and other allied agro-based products.
Written by Shivani Singh
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