1. At a Glance
An agrochemical smallcap with a ₹300+ share price and a P/E ratio that could launch a rocket (282). While its peers rake in crores in profits, Bhagiradha delivers a shocker: negative PAT in Q4 FY25. But behind the fog is a Rs. 368 crore bet on its newly activated subsidiary and patented processes. Is this just the build-up phase before the boom?
2. Introduction with Hook
Imagine spending ₹300 on a bag of fertilizer, opening it, and finding… just hope. That’s Bhagiradha Chemicals right now. Its P/E ratio screams “valued like a unicorn,” while its last quarter says “Hi, I lost ₹0.88 crore.” But wait, there’s more. A brand-new plant is up, a ₹368 crore loan was just turned into equity for its subsidiary, and patents are getting inked.
Key Stat 1: Q4 FY25 Net Loss: ₹0.88 crore
Key Stat 2: Debtor Days: A whopping 144 (vs 111 a year ago)
3. Business Model (WTF Do They Even Do?)
Bhagiradha is into the dirty (read: profitable) work of agrochemical manufacturing. Their catalog features:
- Insecticides: Chlorpyrifos, Diafenthiuron, Fipronil
- Fungicides: Azoxystrobin
- Herbicides: Imazethapyr, Clodinafop-propargyl
- Intermediates: 2,6-Dichloroaniline, R-HPPA
Their edge? Complex chemistry + IP-driven approach (hello patents!) + upstream backward integration with Bheema Fine Chemicals, their wholly owned manufacturing arm in Karnataka.
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY20 | 246 | 17 | 7 | 7% | 0.63 |
| FY21 | 318 | 47 | 23 | 15% | 2.27 |
| FY22 | 436 | 68 | 36 | 16% | 3.48 |
| FY23 | 502 | 77 | 45 | 15% | 4.34 |
| FY24 | 408 | 43 | 18 | 11% | 1.75 |
| FY25 | 440 | 37 | 14 | 8% | 1.07 |
Trend: OPM is down from 16% to 8%, and EPS has dropped nearly 75% from FY23 highs.
5. Valuation
Let’s apply some sobriety to this party:
- Current P/E: 282 (yes, that’s real)
- Industry Median P/E: ~37
- Fair Value Range (Edu DCF + Relative Val): ₹100 – ₹140 (best-case: ₹180 post-subsidiary ramp-up)
Verdict: Either it’s priced for perfection or someone is pricing in an agrochemical moonshot.
6. What’s Cooking – News, Triggers, Drama
- Bheema Fine Chemicals subsidiary is live — commercial production began in Mar 2024. Expect margin expansion (eventually).
- Loan to Equity conversion of ₹368 crore = no fresh dilution but big bet on internal capacity.
- Patent granted for Ethiprole – gives R&D street cred.
- Share split approved, because hey, if EPS won’t rise, maybe the share count can.
- Preferential warrants to promoters – they’re either bullish or have run out of Netflix series.
7. Balance Sheet
| Item (₹ Cr) | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Equity Capital | 8 | 8 | 8 | 10 | 10 | 13 |
| Reserves | 124 | 147 | 182 | 303 | 403 | 669 |
| Borrowings | 43 | 62 | 81 | 50 | 62 | 89 |
| Total Assets | 225 | 273 | 342 | 447 | 576 | 933 |
Key Takeaway: Borrowings are inching up, but equity infusion in the subsidiary has ballooned reserves. Asset-heavy, R&D-fueled growth play.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY20 | 48 | -39 | -9 | 0 |
| FY21 | 4 | -21 | 15 | -2 |
| FY22 | 7 | -17 | 12 | 2 |
| FY23 | 14 | -60 | 46 | 1 |
| FY24 | 34 | -121 | 88 | 2 |
| FY25 | -53 | -200 | 272 | 19 |
Smell that? It’s burning cash. But it’s funding capacity – not ops. Big capex in Bheema is likely the blackhole here.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 22 | 8 | 5 |
| ROE (%) | 9 | 3 | 2.5 |
| Debtor Days | 94 | 96 | 144 |
| Inventory Days | 108 | 168 | 170 |
| Cash Conversion | 132 | 166 | 192 |
Verdict: Operational efficiency has taken a sabbatical. ROE < FD rates. Debtors aging like fine wine.
10. P&L Breakdown – Show Me the Money
| Quarter | Sales (₹ Cr) | OPM (%) | PAT (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 111.39 | 10.76% | 5.71 |
| Q2 FY25 | 103.73 | 9.36% | 5.44 |
| Q3 FY25 | 102.73 | 8.92% | 3.59 |
| Q4 FY25 | 122.62 | 4.95% | -0.88 |
Q4 is a bummer. The plant started, but costs shot up and profit went poof.
11. Peer Comparison
| Company | P/E | ROCE (%) | OPM (%) | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|---|
| P I Industries | 38 | 22.6 | 27.3 | 7977.8 | 1660.2 |
| Sumitomo Chemical | 60 | 25.1 | 20.1 | 3090.4 | 501.9 |
| Bayer CropScience | 51 | 24.8 | 12.6 | 5473.4 | 568 |
| Dhanuka Agritech | 27 | 28.3 | 20.4 | 2035.2 | 291.8 |
| Bhagiradha Chem. | 282 | 5.2 | 8.4 | 440.5 | 13.9 |
Bhagiradha = high on hope, low on margins. The market’s betting on its R&D chops + new plant = rerating trigger.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 19.7% (was 24% in FY22 – consistent decline)
- Public Holding: 77.3%
- DIIs entered: Now hold 2.89%
- No. of Shareholders: Exploded from 4,292 in Mar’23 to 13,911 in Jun’25
- Subsidiary: Bheema Fine Chemicals – now live, expected to drive growth
- Patents: Recently granted one for novel Ethiprole manufacturing
13. EduInvesting Verdict™
Bhagiradha is like the overachiever who just joined a gym – sweating cash, building muscle (assets), and whispering about long-term domination. But with falling margins, weak return ratios, and a P/E from another dimension, this is a science experiment—not a blue chip.
Watchlist material? Yes.
Multibagger vibes? Only if Bheema delivers and R&D pays off.
Metadata
– Written by EduInvesting Team | 18 July 2025
– Tags: Agrochemicals, Smallcap, Bhagiradha, Specialty Chemicals, R&D Plays, Patent Stocks
