Dhanlaxmi Crop Science Limited

As per financial performance, Dhanlaxmi Crop Science Limited has posted total income / net profits of Rs 35.43 Cr / Rs 0.58 Cr (FY22), Rs 46.64 Cr / Rs 2.99 Cr (FY23), Rs 63.75 Cr / Rs 4.65 Cr (FY24) and Rs 119.96 Cr / Rs 8.21 Cr (H1 FY24). So as per previous financials data, company has shown exceptional growth, if company can maintain similar growth rate in future that needs to be watched. Company has posted an average EPS of Rs 2.95 and average RoNW of 24.77% for last three fiscals. Issue is priced at a P/BV of 2.71 as per NAV of Rs 2.71/- as on 30.09.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 29.98, 19.30 and 5.47 respectively, which looks fairly priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Finshore Management Services Limited is associated with this SME IPO and handled 27 SME IPOs in last 4 years. From last 10 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, one is trading below issue price and remaining are trading above issue price or at par as on today. ( As on 04.12.24 ) As per financials, Dhanlaxmi Crop Science Limited has shown good growth, RoNW is 22.8% and P/E is respectively 29.98, 19.30 and 5.47 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fairly priced as per annualized FY25 earnings, but if company can maintain similar growth rate in future that needs to be watched. Company is technology driven seeds company that develops, produces, processes and sells seeds for a range of field crops and vegetables, which is highly competitive and fragmented business segment. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Kamleshkumar Jayantilal Patel
• 2 Mr. Alpeshbhai Jayantibhai Patel
• 3 Mr. Meet Kamleshkumar Patel