At a Glance
Indogulf Cropsciences Ltd, a 30-year-old agrochemical company, is going public with a ₹200 Cr IPO—₹160 Cr fresh issue + ₹40 Cr OFS. While the government wants to double farmer income, this company is focused on doubling its EBITDA margins. But with a P/E of 24.27x and post-issue dilution of over 27%, are we buying growth… or just fertilizer fumes?
1. 🌱 Introduction with Hook
Agritech is hot. Agrochemicals? Even hotter.
And now, Indogulf Cropsciences Ltd (ICL) wants to IPO your way into pest-free profits.
The ₹200 Cr IPO is a mix of:
- ₹160 Cr fresh issue 🌱
- ₹40 Cr OFS (because old shareholders also need some yield, bro) 💸
🎯 Price Band: ₹105–₹111
📊 Valuation: ₹701 Cr
📦 Post-Issue P/E: 24.27x
📉 ROE: 12.2%
So…
- Profitable? Yes.
- Growing? Sort of.
- Overpriced? You bet your bNII.
2. 🧪 WTF Do They Even Do? (Business Model)
Indogulf makes the stuff that keeps crops alive — pesticides, nutrients, and biologicals.
Business Verticals:
- Plant Nutrients: Specialty fertilizers, soil health boosters, etc.
- Crop Protection: Insecticides, herbicides, fungicides (pest drama)
- Biologicals: Biostimulants, biofertilizers (eco-friendly marketing magic)
Facilities:
- 4 factories across Haryana and J&K (covering 20 acres)
- In-house backward integration (think: raw chemical mastery)
Distribution:
- 🧑🌾 5,772 distributors
- 🌍 Present in 22 states + 3 UTs + 34 countries
👩🔬 Also, they’re one of the first Indian firms to make Pyrazosulfuron Ethyl and Spiromesifen with >96% purity (which sounds cool but makes zero sense without a PhD in weeds).
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Period | Revenue | PAT | EBITDA | Net Worth | Debt |
|---|---|---|---|---|---|
| FY22 | ₹490.23 Cr | ₹26.36 Cr | ₹47.24 Cr | ₹180.51 Cr | ₹101.38 Cr |
| FY23 | ₹552.19 Cr | ₹22.42 Cr | ₹49.04 Cr | ₹203.25 Cr | ₹189.22 Cr |
| FY24 | ₹555.79 Cr | ₹28.23 Cr | ₹55.74 Cr | ₹231.65 Cr | ₹154.56 Cr |
| 9M FY25 | ₹466.31 Cr | ₹21.68 Cr | ₹44.78 Cr | ₹265.43 Cr | ₹206.30 Cr |
🎯 Revenue CAGR (FY22–FY24): ~6.5%
📉 PAT Margin: ~5%
⚠️ Debt has increased again in 9MFY25
🧠 EBITDA margin stable ~10% = industry standard
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- IPO Market Cap: ₹701.5 Cr
- Post-IPO P/E: 24.27x
- Post-IPO EPS (annualized): ₹4.57
- P/BV: 1.13x
- ROE: 12.2%
Fair Value Range:
Let’s apply a justified sector P/E of 16x to 20x on FY24 PAT of ₹28.23 Cr:
- FV Range = ₹452 Cr to ₹565 Cr
- Post-issue equity: 6.32 Cr shares
👉 EduFair Value Range = ₹71 – ₹89/share
📌 At upper band ₹111 — you’re paying for future rainfall predictions.
5. 🚜 What’s Cooking – News, Triggers, Drama
- ₹65 Cr for working capital (not R&D = meh)
- ₹34 Cr to repay debt (but total borrowings are still ₹206 Cr)
- ₹14 Cr for a new Dry Flowable (DF) plant in Sonipat (not to be confused with dry humor)
- Subdued topline growth in FY23-FY24
- Margin expansion steady, but not explosive
- Anchor investors picked up ₹58.2 Cr worth of shares (cue soft claps)
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 (9M) Snapshot | Value |
|---|---|
| Net Worth | ₹265.43 Cr |
| Reserves | ₹216.64 Cr |
| Total Assets | ₹597.81 Cr |
| Total Borrowing | ₹206.30 Cr |
| D/E | 0.67 ⚠️ |
📉 Debt isn’t crazy, but with over ₹200 Cr on books and slow growth, it’s worth tracking.
7. 💵 Cash Flow – Sab Number Game Hai
- No detailed FCF figures shared
- EBITDA suggests cash-rich ops
- But increasing debt and capex plans = tight liquidity
- Working capital guzzles cash in agro sector due to long receivables & seasonality
🧠 Don’t expect free cash flows to be as evergreen as their fertilizers.
8. 📊 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 12.2% 😐 |
| ROCE | 11.93% 😐 |
| PAT Margin | 5.11% 🫠 |
| EBITDA Margin | 10.09% ✅ |
| Debt/Equity | 0.67 ⚠️ |
| Post IPO P/E | 24.27x 🚨 |
| P/BV | 1.13x ✅ |
🎯 TL;DR: Financials are… just okay. Nothing toxic, but nothing tempting.
9. 🧾 P&L Breakdown – Show Me the Money
- FY24 revenue almost flat vs FY23 → commodity price pressure
- PAT growth (FY23 → FY24) = up ₹6 Cr = not bad
- FY25 (9M) already hit ₹466 Cr revenue → likely to end FY with ~₹600 Cr revenue
- But profit is not growing proportionally = margin headroom limited
10. 🌿 Peer Comparison – Who Else Is in the Game?
| Company | Revenue | PAT | P/E | ROE | Margin |
|---|---|---|---|---|---|
| Indogulf | ₹555 Cr | ₹28 Cr | 24.27x | 12.2% | 10% |
| Bharat Rasayan | ₹1,150 Cr | ₹170 Cr | ~17x | 20%+ | ~18% |
| Dhanuka Agritech | ₹1,470 Cr | ₹165 Cr | ~18x | 17%+ | ~14% |
| Sharda Cropchem | ₹2,370 Cr | ₹252 Cr | ~13x | 16% | 12% |
💡 Conclusion: Indogulf is much smaller, slower, and more expensive than peers.
11. 📈 Misc – Shareholding, Promoters, Anchor Flex
- Promoters: Om Prakash, Sanjay, Anshu, Arnav Aggarwal
- Pre-Issue Holding: 96.86%
- Post-Issue Holding: ~77.1% (est.)
📦 OFS = 36.03 lakh shares = ₹40 Cr → not massive, but shows insider exit signal
📈 Subscription Status (Day 2):
- QIB: 0.05x 😬
- NII: 0.86x
- Retail: 1.58x ✅
- Total: 0.98x → Looks fragile unless QIBs wake up on Day 3
12. 🧠 EduInvesting Verdict™
Indogulf Cropsciences is a steady, legacy agrochemical player with a decent margin profile and solid domestic + export presence.
But let’s face it:
- Revenue has stagnated
- Margins are average
- And IPO valuation is ambitious at ~24x earnings
Add a 27% post-issue equity dilution and static top line → and this crop might not be worth planting at ₹111.
🎯 EduVerdict™:
“Valuation is blooming. Growth isn’t. Smells more like manure than multibagger.”
Fair Value Range: ₹71 – ₹89/share
✍️ Written by Prashant | 📅 June 30, 2025
📂 Tags: Indogulf Cropsciences IPO, Agrochemical IPO 2025, NSE IPO June 2025, IPO Review India, EduInvesting, Fertilizer Stocks,
