GSP Crop Science Limited research-driven agrochemical company, specializing in the development and manufacturing of insecticides, herbicides, fungicides and plant growth regulators in India, with over 40 years of experience in the agrochemical industry. They provide the customers with crop protection solutions designed to support farmers in maximizing productivity and achieving optimal agricultural output through development, manufacturing, supply and distribution of (i) formulations, which refer to products composed of 'active ingredients', chemical compounds in a product responsible for achieving the desired effects on the target pests, weeds, or plant diseases and 'additives' which improve the product's performance, stability, and ease of use, in definite proportion obtaining well-defined target properties ('Formulations'); and (ii) technicals, which refer to concentrated form of the 'active ingredients' which are processed with other ingredients to develop formulations ('Technicals'). As of September 30, 2025 company has received 524 registrations across Formulations and Technicals for agrochemicals. They have bein granted 102 patents as of the date of this RHP. Their revenue from sale of patented products was Rs 1,436.75 million for 6M FY26, accounting for 17.10% as a percentage of sale of products from continuing operations for the period. Additionally, they also have 108 patent applications under process as of date of this RHP. Company has adopted a multi-faceted approach to the business, by establishing presence in both domestic and international markets. The (i) domestic business is undertaken on a business-to-business basis ('B-to-B') for bulk products, as well as business-to-customer basis ('B-to-C') across India through the brands such as SLR 525, Platform, PCT-410, All Rounder, Afford, Aurthor, Liger, Raavan, Element, Runway and Fighter ('Domestic Business'); and the (ii) international business is undertaken on a B-to-B basis across various geographies outside India. In the International Business, they catered to customers in 37 countries during the 6M Fiscals 2026, Fiscals 2025, 2024 and 2023, countries primarily included Uruguay, United States of America, Vietnam, Brazil, Singapore, Bangladesh, United Arab Emirates, Taiwan, Australia and Sri Lanka. In 2023, they acquired, GSP Agroquimica Do Brasil LTDA in Brazil with an intention to expand into the Latin American market. They have long-standing relations with the customers for the Domestic Business as well as International Business. Several of the customers have been associated with the Company for over 10 years. The customers include agrochemical companies such as Bharat Rasayan Limited, Dharmaj Crop Guard Limited, Indogulf Cropsciences Limited, SML Limited, Willowood Chemicals Limited and Agrico Organics Limited. As of September 30, 2025, company has five manufacturing facilities located at Odhav (Ahmedabad, Gujarat), Kathwada (Ahmedabad, Gujarat), Nandesari (Vadodara, Gujarat), Samba (UT of Jammu & Kashmir) and Saykha (Dahej, Gujarat). As of 30.09.25, they have an annual aggregated installed capacity of 15,120 MTPA for Technicals, 43,672 MTPA for Formulations and 5,400 MTPA for Intermediates across the five manufacturing facilities. They have a strong employee base comprising of 1,221 permanent employees as of 30.09.25. They have received quality control certifications for some of the manufacturing facilities such as ISO 9001-2015, ISO 14001-2015, ISO 45001-2018, Responsible Care Certification, amongst others. As per financial performance, GSP Crop Science Limited has posted total income / net profits of Rs 1,206.04 Cr / Rs 17.57 Cr (FY23), Rs 1,158.22 Cr / Rs 55.54 Cr (FY24), Rs 1,301.05 Cr / 81.42 Cr (FY25) and Rs 847.60 Cr / 81.06 Cr (upto Q2 FY26). So as per previous financials data, company has shown almost static sales, but net profit increased significantly. Also trade receivables is around 30% and inventory is around 28% of FY25 total sales. Company has an average EPS of Rs 15.80 and average RoNW of 14.99% for last three fiscals. Issue is priced at a P/BV of 2.36 as per NAV of Rs 135.80/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 26.80, 18.28 and 9.18 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Equirus Capital Private Limited, Motilal Oswal Investment Advisors Limited are associated with this IPO, and has handled 53 IPOs in last three fiscal years. ( As on 12.03.26 ) As per financials, GSP Crop Science Limited has shown almost static sales, RoNW is 18.38% and P/E is 26.80, 18.28 and 9.18 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced and higher trade receivables and inventory raises concerns. Company is in the business of in the development and manufacturing of insecticides, herbicides, fungicides and plant growth regulators in India, which is highly competitive business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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