🧾 At a Glance
Bombay Super Hybrid Seeds Ltd (BSHSL) is a ₹1,500 Cr Gujarat-based company in the hybrid and GM seed business. Over the past 5 years, it’s delivered a jaw-dropping 58% profit CAGR, 29% ROE, and 28% sales CAGR. But with a P/E of 57 and P/B of 14.4x, it’s no longer the “cheap seed” it once was. So… is this a fertile ground for investors, or just another overvalued sprout?
1️⃣ WTF Do They Even Do?
BSHSL is not your average fertilizer peddler.
🧬 They produce and market over 150 seed varieties including:
- 🌾 Groundnut
- 🌱 Sesame
- 🧅 Onion
- 🌽 Maize
- 🌿 Coriander & Cumin
They also provide agronomic advisory to farmers.
🎯 Core Business:
Processing, hybridization, and GM seed marketing (via distributors & direct-to-farmers model)
2️⃣ Financials – Profit, Margins, ROE, Growth
| Metric | FY20 | FY25 | CAGR |
|---|---|---|---|
| Revenue | ₹103 Cr | ₹359 Cr | 28% |
| Net Profit | ₹3 Cr | ₹26 Cr | 58% |
| EBITDA Margin | 6% | 9% | Expanding |
| ROE | ~15% | 28.9% | 🔥 |
📈 From ₹0.25 EPS in FY20 → ₹2.52 EPS in FY25 — 10x in 5 years.
But can it grow another 10x from here?
3️⃣ Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹144 |
| P/E | 57x 😬 |
| EPS | ₹2.52 |
| Book Value | ₹9.98 |
| P/B | 14.4x 🚨 |
| ROE | 28.9% |
| Market Cap | ₹1,507 Cr |
🧠 Fair Value Estimate
Assuming FY26E EPS = ₹3.2–3.5
Target P/E = 28–35x (high growth smallcap, but not deep moat)
🎯 Fair Value Range = ₹90 – ₹125
⚠️ It’s trading above fair value unless you believe EPS will double again.
4️⃣ What’s Cooking – News, Triggers, Drama
- Q4 FY25 Sales up 52% YoY: From ₹30 Cr → ₹45.9 Cr
- Net Profit Q4 up 34% YoY: ₹4.2 Cr
- EPS momentum continues, despite working capital-heavy model
- Inventory Days down from 497 (FY23) to 237 (FY25) 🚀
- No dividends — company reinvests all profits
Still no big-brand tie-ups, exports, or diversification news. Pure-play seed biz.
5️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹104 Cr |
| Total Borrowings | ₹92 Cr |
| D/E | 0.88x ⚠️ |
| Net Block | ₹9 Cr |
| Total Assets | ₹222 Cr |
🧯 Aggressive growth has come with rising borrowings. Asset-light model, but seed inventories clog cash.
6️⃣ Cash Flow – Sab Number Game Hai 💸
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY24 | ₹12 Cr | ₹(2) Cr | ₹(9) Cr | ₹0 Cr |
| FY25 | ₹(31) Cr | ₹(7) Cr | ₹38 Cr | ₹0 Cr |
🔴 Negative operating cash in FY25
🟡 Cash flows haven’t kept up with PAT – due to rising working capital needs (more inventory, more credit)
7️⃣ Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 21.2% | 🔥 Efficient |
| ROE | 28.9% | 💪 Superb |
| OPM | 9% | 🟢 Healthy |
| Inventory Days | 237 | ⚠️ Still high |
| CCC | 229 days | ⚠️ Capital locked |
High return ratios, but also very working-capital intensive.
8️⃣ P&L Breakdown – Show Me the Money
| FY25 Figures | ₹ Cr |
|---|---|
| Sales | ₹359 |
| EBITDA | ₹33 |
| Net Profit | ₹26 |
| EPS | ₹2.52 |
Profit margins have consistently improved, but P&L remains seasonal and cyclical.
Biggest quarters = Q1 (June) and Q3 (Dec), due to sowing cycles.
9️⃣ Peer Comparison – Who Else Sells to Farmers?
| Company | P/E | ROE | Sales (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|
| Bombay Super | 57x | 28.9% | ₹359 | ₹26 |
| Kaveri Seeds | 21.5x | 20.6% | ₹1,205 | ₹281 |
| KRBL | 17.6x | 9.4% | ₹5,594 | ₹476 |
| GRM Overseas | 36x | 16.1% | ₹1,348 | ₹61 |
🤔 BSHSL is smallest, has highest P/E, but also highest ROE. That screams “high expectation, low margin of error”.
🔟 Misc – Promoters, Shareholding, Liquidity
- Promoter Holding: 73.85% 🟢 Stable
- Public Holding: 26.15%
- FII Holding: 0.01% 🟤 Practically absent
- No. of shareholders: Up from 1,700 → 17,000+ in 2 years 🚀
Retail is entering fast. Institutions still on the sidelines.
🧠 EduInvesting Verdict™
💬 “This isn’t a seed company anymore — it’s a momentum stock wearing khadi.”
✅ 58% profit CAGR
✅ 29% ROE
✅ Clean promoter record
❌ P/E > 55x = Too rich, too fast
❌ Cash flows negative despite profits
Fair Value Range = ₹90 – ₹125
(based on 28–35x FY26E EPS ₹3.2–3.5)
CMP ₹144 = 15–20% premium already baked in. Any slip in quarterly growth, and gravity will do its thing.
High-quality agri play, but don’t confuse a good harvest with infinite rain.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Bombay Super Hybrid Seeds, Agri Stocks, Hybrid Seed Companies, Smallcap Overvaluation, High ROE Stocks,
