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HPC Biosciences Overview

1. Business Overview

HPC Biosciences Ltd. operates in the agriculture sector in India, primarily focusing on biological solutions. Given its name, the company is likely involved in the research, development, production, and marketing of agricultural inputs based on biological processes. This could include bio-fertilizers, bio-pesticides, bio-stimulants, plant growth regulators, soil health products, and potentially specialized seeds or animal nutrition products derived from biotechnology. Its core business model is to provide farmers with sustainable and often eco-friendly alternatives or complements to traditional chemical inputs, aiming to improve crop yield, soil health, and overall agricultural productivity. The company primarily makes money through the sale of these agricultural biological products directly to farmers, through a network of distributors, or via institutional sales to larger agricultural enterprises.

2. Key Segments / Revenue Mix

Specific revenue mix and key segments are not available in the provided information. However, based on the company name and industry, potential segments might include:

Bio-Crop Care Products: Bio-fertilizers, bio-pesticides, bio-fungicides, and bio-herbicides.

Plant Nutrition & Soil Health: Bio-stimulants, micronutrients, and soil conditioners.

Seed Treatment & Technologies: Biological seed treatment solutions for enhanced germination and early plant vigor.

Research & Development Services: If it develops proprietary technologies, it might also license them or offer related services.

Without specific data, it is not possible to quantify the contribution of each potential segment.

3. Industry & Positioning

The Indian agriculture industry is vast and diverse, characterized by a large number of small and marginal farmers, dependency on monsoons, and significant government intervention. The market for agricultural biologicals is an emerging but growing segment, driven by increasing awareness of environmental sustainability, soil degradation, residue concerns from chemical pesticides, and government promotion of organic farming. HPC Biosciences likely positions itself as a provider of advanced, eco-friendly, and sustainable solutions for modern agriculture. Its "biosciences" focus suggests a technology-driven approach, potentially competing with both traditional chemical input providers and other specialized biological product companies, aiming for differentiation through R&D and product efficacy.

4. Competitive Advantage (Moat)

The company's competitive advantages, if any, could stem from:

Proprietary R&D and Formulations: Developing unique, effective biological strains or formulations that offer superior performance. This could include patents or trade secrets.

Regulatory Approvals & Licenses: Successfully navigating the complex regulatory landscape for biological products, which can be a significant barrier to entry.

Brand Reputation & Farmer Trust: Building trust among farmers through consistent product quality and demonstrated efficacy, leading to repeat purchases.

Distribution Network: Establishing a robust and wide-reaching distribution network across diverse agricultural regions in India is crucial for reaching farmers effectively.

Cost Efficiency in Production: Ability to produce biological inputs at a competitive cost without compromising quality.

The strength and presence of these potential moats for HPC Biosciences Ltd. are not explicitly known.

5. Growth Drivers

Growing Demand for Sustainable Agriculture: Increasing farmer and consumer awareness of environmental impact, soil health, and demand for residue-free produce.

Government Support & Policies: Initiatives like organic farming promotion, subsidies for bio-inputs, and climate-resilient agriculture programs.

Technological Advancements: Continuous innovation in biotechnology leading to more effective and targeted biological solutions.

Yield Improvement Focus: Farmers constantly seek ways to improve crop yields and quality, which advanced biological products can contribute to.

Export Potential: Growing global demand for organic and sustainably grown agricultural products could open export markets.

6. Risks

Monsoon Dependency: The Indian agriculture sector is heavily reliant on monsoon rains, which can impact farmer purchasing power and crop cycles.

Price Volatility of Agricultural Commodities: Fluctuations in crop prices can affect farmer income and their ability to invest in advanced inputs.

Intense Competition: Competition from both established chemical fertilizer/pesticide players (who are also entering the biologicals space) and other biological solution providers.

Regulatory Hurdles: Stringent and evolving regulatory processes for new biological products can be time-consuming and costly.

Farmer Acceptance & Education: Overcoming traditional farming practices and educating farmers about the benefits and proper application of biological products.

R&D Failure: Investments in R&D may not always translate into commercially viable products.

Counterfeit Products: Risk of spurious or counterfeit products impacting brand reputation and sales.

7. Management & Ownership

Specific details regarding the promoters, management quality, or precise ownership structure for HPC Biosciences Ltd. are not provided. In India, many listed companies have a significant portion of ownership held by founding families or promoter groups, alongside institutional investors and the public. The quality of management is critical for navigating the complexities of the agricultural sector, including R&D, manufacturing, distribution, and regulatory compliance.

8. Outlook

HPC Biosciences Ltd. operates in a promising niche within the Indian agriculture sector, benefiting from the global shift towards sustainable farming and increasing demand for biological inputs. The "biosciences" focus positions it in a high-growth segment, potentially offering superior products with environmental benefits. However, success hinges on its ability to continually innovate, secure regulatory approvals, effectively reach and educate a vast and diverse farmer base, and withstand competition from both local and international players. The company's outlook is tied to its R&D capabilities, strength of its distribution network, and its ability to build farmer trust through consistent product performance. While opportunities for growth are significant, the inherent risks associated with agriculture (weather, policy, commodity prices) and the challenges of commercializing new technologies require careful execution and strong operational management.

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HPC Biosciences Key Financials

Market Cap ₹410 Cr.

Stock P/E 350.4

P/B 12.5

Current Price ₹25.7

Book Value ₹ 2.1

Face Value 1

52W High ₹0

Dividend Yield 0%

52W Low ₹ 0

HPC Biosciences Share Price

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Volume
Price

HPC Biosciences Quarterly Price

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HPC Biosciences Peer Comparison

HPC Biosciences Quarterly Results

#(Fig in Cr.) Sep 2013 Sep 2016 Sep 2017
Net Sales 1 1 1
Other Income 0 0 0
Total Income 1 1 1
Total Expenditure -0 0 0
Operating Profit 1 1 1
Interest 0 0 0
Depreciation 1 0 0
Exceptional Income / Expenses 0 0 0
Profit Before Tax 0 0 0
Provision for Tax 0 0 0
Profit After Tax 0 0 0
Adjustments -0 -0 -0
Profit After Adjustments 0 0 0
Adjusted Earnings Per Share 0 0 0

HPC Biosciences Profit & Loss

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
Net Sales 0 3 5 3 3 2 2 2 2 1 2 3
Other Income 0 0 0 0 0 0 0 0 0 0 0 0
Total Income 0 3 5 4 3 2 2 2 2 1 2 3
Total Expenditure 0 -0 0 1 1 0 1 1 0 0 1 0
Operating Profit -0 3 4 3 2 2 2 1 1 1 2 3
Interest 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 1 1 1 1 1 1 1 1 1 1
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Profit Before Tax -0 3 3 1 1 1 1 0 1 0 1 0
Provision for Tax 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Tax -0 3 3 1 1 0 1 0 1 0 1 0
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments -0 3 3 1 1 0 1 0 1 0 1 0
Adjusted Earnings Per Share -0 0.9 0.2 0.1 0 0 0 0 0 0 0.1 0

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 100% 0% 0% 0%
Operating Profit CAGR 100% 26% 0% 0%
PAT CAGR 0% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 0% -1% -0% -5%
ROE Average 4% 2% 2% 15%
ROCE Average 4% 2% 2% 15%

HPC Biosciences Balance Sheet

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Shareholder's Funds 0 5 28 29 30 30 31 31 31 32 33
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 0 0 0 0 0 0 0 0 0 0 0
Other Non-Current Liabilities 0 0 0 0 0 0 0 0 0 0 0
Total Current Liabilities 0 0 0 0 0 0 0 0 1 0 0
Total Liabilities 0 5 28 29 30 30 31 31 32 32 33
Fixed Assets 0 1 11 10 8 7 6 5 4 4 3
Other Non-Current Assets 0 0 6 6 4 4 4 4 4 4 4
Total Current Assets 0 4 11 13 17 19 21 22 24 25 26
Total Assets 0 5 28 29 30 30 31 31 32 32 33

HPC Biosciences Cash Flow

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Opening Cash & Cash Equivalents 0 0 0 1 0 1 1 0 0 0 0
Cash Flow from Operating Activities -0 -0 3 4 0 -0 1 0 1 1 1
Cash Flow from Investing Activities 0 -1 -23 -5 1 0 -2 -0 -1 -1 0
Cash Flow from Financing Activities 0 2 20 0 -0 0 0 0 0 0 0
Net Cash Inflow / Outflow -0 0 1 -0 0 -0 -1 -0 0 0 1
Closing Cash & Cash Equivalent 0 0 1 0 1 1 0 0 0 0 2

HPC Biosciences Ratios

# Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Earnings Per Share (Rs) -0.01 0.87 0.19 0.08 0.04 0.03 0.03 0.01 0.03 0.02 0.07
CEPS(Rs) -0.01 0.91 0.27 0.16 0.13 0.12 0.09 0.07 0.08 0.06 0.11
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 0.49 1.37 1.72 1.79 1.84 1.87 1.91 1.93 1.96 1.99 2.06
Core EBITDA Margin(%) 0 109.61 90.31 73.68 64.61 93.83 60.86 48.54 75.32 72.26 70.83
EBIT Margin(%) 0 105.16 62.57 36.29 24.46 27.44 25.2 12.33 36.17 29.94 52.14
Pre Tax Margin(%) 0 105.16 62.57 36.28 24.45 27 25.03 11.9 36.07 29.92 52.12
PAT Margin (%) 0 105.16 62.52 35.7 22.78 24.65 22.48 10.12 34.63 28.06 51.16
Cash Profit Margin (%) 0 109.61 90.41 74.96 68.41 98.64 66.39 53.41 79.37 78.87 73.59
ROA(%) -0.6 124.92 18.25 4.32 2.39 1.54 1.66 0.63 1.75 1.05 3.58
ROE(%) -1.02 125.8 18.47 4.41 2.44 1.56 1.68 0.64 1.78 1.07 3.62
ROCE(%) -0.61 124.95 18.43 4.45 2.6 1.73 1.88 0.78 1.86 1.14 3.69
Receivable days 0 43.8 55.17 0 233.6 512.37 577.12 848.13 1192.36 1630.41 888.1
Inventory Days 0 97.88 69.61 98.08 87.85 188.39 200.57 201.1 205.59 256.43 107.96
Payable days 0 0 0 0 0 0 0 0 0 0 0
PER(x) 0 0 22 679.59 1040.72 1446.37 1526.73 3296.75 0 0 0
Price/Book(x) 0 0 2.39 29.38 25.06 22.33 25.4 21.03 0 0 0
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0 0.57 13.63 242.49 236.97 356.75 343.1 332.72 9.81 13.06 6.85
EV/Core EBITDA(x) -147.6 0.52 15.07 321.01 338.13 351.75 496.53 598.21 12.12 16.17 9.19
Net Sales Growth(%) 0 0 64.32 -27.31 -10.61 -39.64 20.91 -13.87 -17.73 -25.03 90.55
EBIT Growth(%) -150 0 -2.23 -57.85 -39.74 -32.3 11.04 -57.85 141.33 -37.95 231.87
PAT Growth(%) -150 0 -2.31 -58.49 -42.95 -34.69 10.27 -61.22 181.45 -39.26 247.42
EPS Growth(%) -150 0 -78.58 -58.51 -42.89 -34.62 10.03 -61.32 182.31 -39.23 247.39
Debt/Equity(x) 0.68 0 0 0.01 0 0 0 0 0 0 0
Current Ratio(x) 98.4 7394.4 76.31 27.43 219.48 192.77 52.59 47.41 42.49 53.95 92.99
Quick Ratio(x) 98.4 5840 69 25.7 210.98 180.16 49.55 45.46 40.91 52.19 91.04
Interest Cover(x) 0 0 7949.78 3936.3 3272.56 63.08 150.94 28.83 369.11 1956.75 2897.08
Total Debt/Mcap(x) 0 0 0 0 0 0 0 0 0 0 0

HPC Biosciences Shareholding Pattern

# Mar 2020 Sep 2020 Mar 2021 Sep 2021 Mar 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023
Promoter 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93
FII 0 0 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 78.07 78.07 78.07 78.07 78.07 78.07 78.07 78.07 78.07 78.07
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

HPC Biosciences News

HPC Biosciences Pros & Cons

Pros

  • Company is almost debt free.

Cons

  • Promoter holding is low: 21.93%.
  • Company has a low return on equity of 2% over the last 3 years.
  • Stock is trading at 12.5 times its book value.
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