Agriculture · Founded 2005 · www.rjbiotech.com · BSE 536456 · · ISIN INE594O01015
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Business
RJ Bio-Tech Ltd., operating in the Indian agriculture sector, primarily focuses on developing and marketing bio-technology-based solutions for agricultural applications. While specific product details require deeper review, companies in this space typically offer products like bio-fertilizers, bio-pesticides, plant growth promoters, and potentially enhanced seeds or animal feed supplements. The core business model involves R&D to develop these biological products, obtaining necessary regulatory approvals, and then manufacturing and distributing them to farmers, agricultural cooperatives, and other businesses within the agricultural value chain. The company makes money by selling these specialized agricultural inputs designed to improve crop yield, soil health, and pest resistance, often with a focus on sustainable and eco-friendly farming practices.
Revenue Mix
Without access to detailed financial reports, specific revenue breakdowns are not available. However, based on the company's sector and industry, potential key segments could include:
Bio-fertilizers: Products that enhance soil fertility and nutrient uptake.
Bio-pesticides: Biological agents used to control pests, diseases, and weeds.
Plant Growth Promoters: Substances that stimulate plant growth and development.
Other Agri-Inputs: Could potentially include specialized seeds or animal health/nutrition products if they leverage biotech in those areas.
The primary revenue would likely be generated from the sale of these biotech agricultural inputs.
Industry
The Indian agriculture sector is vast, fragmented, and heavily reliant on monsoon patterns, government policies, and farmer income. The agri-biotech segment is a growing niche within this larger sector, driven by increasing awareness of sustainable farming, demand for higher yields, and environmental concerns over chemical overuse. RJ Bio-Tech likely operates among a mix of established domestic players, smaller specialized firms, and potentially some larger multinational corporations. Its positioning would depend on its specific product portfolio, technological differentiation, distribution network strength, and market penetration in various agricultural regions of India. Without market share data, it's difficult to ascertain if it's a niche player, a regional leader, or a challenger.
MOAT
RJ Bio-Tech's potential competitive advantages (moats) could stem from:
Proprietary R&D and Intellectual Property: Development of unique microbial strains or formulations that offer superior efficacy or cost-effectiveness.
Regulatory Approvals: Having secured specific product approvals can create a barrier to entry, as the process for new biotech products can be lengthy and complex.
Distribution Network: A strong, established network reaching a broad base of farmers and dealers across different regions of India can be a significant advantage.
Farmer Trust & Brand Recognition: Consistent product performance can build brand loyalty among farmers, which is crucial in a market with many alternatives.
However, the strength and durability of these moats are dependent on the company's specific innovations and market execution, which are not readily apparent from the basic information.
Growth Drivers
Key factors that can drive growth for RJ Bio-Tech over the next 3-5 years include:
Increasing Demand for Sustainable Agriculture: Growing farmer and consumer preference for organic and eco-friendly farming practices.
Government Initiatives: Favorable government policies and subsidies promoting bio-inputs, higher productivity, and farmer income.
Technological Advancements: Continuous R&D leading to the introduction of more effective and efficient biotech products.
Food Security & Population Growth: Rising demand for food due to India's growing population, necessitating improved agricultural yields.
Expansion of Product Portfolio & Geographic Reach: Launching new products and expanding into new agricultural regions within India.
Risks
Monsoon Dependency: Agricultural output and farmer purchasing power are heavily influenced by monsoon rainfall, directly impacting demand for agri-inputs.
Regulatory & Policy Changes: Evolving regulations regarding bio-products, genetically modified crops, and agricultural subsidies can significantly impact operations and market access.
Competition: Intense competition from both domestic and international players offering similar or alternative products.
R&D Failure/Obsolescence: The risk of R&D investments not yielding commercially viable products or existing products becoming obsolete due to new technologies.
Raw Material Price Volatility: Fluctuations in the cost of raw materials necessary for producing bio-tech products.
Farmer Adoption Rates: New biotech products require farmer education and trust, and slow adoption can hinder growth.
Management & Ownership
In India, companies like RJ Bio-Tech Ltd. typically have a significant promoter (founding family or group) shareholding, indicating concentrated ownership and control. Management quality would depend on the experience, vision, and execution capabilities of the leadership team, as well as adherence to corporate governance standards. A detailed assessment would require reviewing their track record, educational background, and recent strategic decisions. The promoter group's long-term commitment to the business and their ability to navigate the complex agricultural landscape are crucial factors.
Outlook
RJ Bio-Tech operates in a fundamentally important and evolving sector in India. The growing emphasis on sustainable agriculture, coupled with the need for increased agricultural productivity, presents a positive long-term structural tailwind for companies offering advanced bio-inputs. If the company can consistently innovate, secure intellectual property, maintain strong regulatory compliance, and effectively expand its distribution network, it has potential for growth. However, the business is highly susceptible to external factors such as monsoon variability, commodity price fluctuations affecting farmer income, and dynamic government policies. Intense competition and the need for continuous R&D investment also pose ongoing challenges. Therefore, the outlook is cautiously optimistic, dependent on the company's ability to execute its strategy effectively amidst inherent industry volatilities and competitive pressures.
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| #(Fig in Cr.) | Jun 2014 | Sep 2014 | Dec 2014 | Mar 2015 | Jun 2015 | Sep 2015 | Dec 2015 | Mar 2016 |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 18 | 5 | 7 | 2 | 15 | 11 | 6 | 4 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Income | 18 | 5 | 7 | 2 | 15 | 11 | 6 | 4 |
| Total Expenditure | 14 | 4 | 6 | 2 | 13 | 7 | 4 | 6 |
| Operating Profit | 3 | 1 | 2 | -0 | 2 | 4 | 2 | -3 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 2 | 0 | 1 | -2 | 1 | 3 | 1 | -4 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | 2 | 0 | 1 | -2 | 1 | 3 | 1 | -4 |
| Adjustments | -2 | -0 | -1 | 2 | -1 | -3 | -1 | 4 |
| Profit After Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Adjusted Earnings Per Share | 2.6 | 0.1 | 0.7 | -1.8 | 1.6 | 3.4 | 1.2 | -3.7 |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 16 | 20 | 29 | 32 | 36 | 16 | 9 | 10 | 13 | 16 | 14 | 36 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Total Income | 16 | 20 | 29 | 32 | 36 | 16 | 9 | 10 | 13 | 16 | 15 | 36 |
| Total Expenditure | 13 | 16 | 23 | 26 | 30 | 27 | 17 | 17 | 17 | 28 | 13 | 30 |
| Operating Profit | 3 | 4 | 6 | 6 | 6 | -11 | -8 | -7 | -3 | -13 | 2 | 5 |
| Interest | 2 | 2 | 3 | 4 | 3 | 4 | 4 | 4 | 1 | 0 | 6 | 4 |
| Depreciation | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exceptional Income / Expenses | -0 | -0 | 0 | 0 | 0 | 0 | -9 | 0 | 0 | -3 | -0 | 0 |
| Profit Before Tax | 1 | 1 | 3 | 1 | 2 | -15 | -21 | -12 | -4 | -16 | -4 | 1 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | 1 | 1 | 3 | 1 | 2 | -15 | -21 | -12 | -4 | -16 | -4 | 1 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5 | -1 |
| Profit After Adjustments | 1 | 1 | 3 | 1 | 2 | -15 | -21 | -12 | -4 | -16 | -9 | 0 |
| Adjusted Earnings Per Share | 0.8 | 1.9 | 3 | 1.5 | 2.4 | -15.9 | -21.9 | -12.2 | -4.4 | -16.6 | -4.3 | 2.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -13% | 12% | -3% | -1% |
| Operating Profit CAGR | 0% | 0% | 0% | -4% |
| PAT CAGR | 0% | 0% | 0% | NAN% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 6% | -6% | -13% | -20% |
| ROE Average | 0% | 0% | 0% | -3% |
| ROCE Average | 0% | -79% | -64% | -26% |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 11 | 14 | 22 | 24 | 26 | 11 | -10 | -21 | -26 | -41 | -50 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 3 | 3 | 2 | 2 | 0 | 1 | 5 | 5 | 5 | 4 | 3 |
| Other Non-Current Liabilities | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Total Current Liabilities | 23 | 22 | 32 | 34 | 33 | 34 | 39 | 43 | 45 | 43 | 48 |
| Total Liabilities | 39 | 41 | 58 | 61 | 60 | 48 | 35 | 28 | 25 | 6 | 2 |
| Fixed Assets | 3 | 3 | 3 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Other Non-Current Assets | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 0 | 0 | 0 |
| Total Current Assets | 32 | 35 | 52 | 56 | 55 | 44 | 32 | 24 | 22 | 4 | 0 |
| Total Assets | 39 | 41 | 58 | 61 | 60 | 48 | 35 | 28 | 25 | 6 | 2 |
| #(Fig in Cr.) | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 1 | 0 | 1 | 0 | -0 | 0 | -0 | 0 | -0 | 0 |
| Cash Flow from Operating Activities | -4 | 4 | -5 | 2 | 6 | 0 | -3 | 1 | 1 | 2 | -5 |
| Cash Flow from Investing Activities | -3 | -2 | -2 | -2 | -1 | -1 | -1 | -1 | -1 | -0 | 0 |
| Cash Flow from Financing Activities | 8 | -3 | 8 | -1 | -5 | 1 | 3 | -0 | -0 | -2 | 5 |
| Net Cash Inflow / Outflow | 0 | -1 | 0 | -0 | -0 | 0 | -0 | 0 | -0 | 0 | -0 |
| Closing Cash & Cash Equivalent | 1 | 0 | 1 | 0 | -0 | 0 | -0 | 0 | -0 | 0 | 0 |
| # | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.84 | 1.87 | 3.03 | 1.55 | 2.4 | -15.86 | -21.93 | -12.18 | -4.39 | -16.56 | -4.28 |
| CEPS(Rs) | 1.43 | 2.38 | 3.38 | 2.17 | 2.74 | -15.64 | -21.74 | -12.02 | -4.29 | -16.47 | -4.21 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 12.77 | 16.71 | 21.13 | 22.83 | 25.54 | 10.13 | -11.5 | -23.63 | -28.1 | -43.5 | -53.17 |
| Core EBITDA Margin(%) | 20 | 20.13 | 20.37 | 17.84 | 16.8 | -71.59 | -90 | -72.94 | -26.02 | -79.89 | 9.46 |
| EBIT Margin(%) | 17.61 | 18.35 | 19.22 | 15.98 | 15.9 | -72.53 | -189.91 | -73.08 | -25.19 | -99.26 | 12.76 |
| Pre Tax Margin(%) | 4.99 | 6.57 | 10.01 | 4.62 | 6.34 | -95.42 | -233.67 | -113.98 | -31.06 | -99.28 | -29.14 |
| PAT Margin (%) | 3.37 | 6.57 | 10.01 | 4.62 | 6.31 | -95.42 | -233.67 | -113.98 | -31.06 | -99.28 | -29.14 |
| Cash Profit Margin (%) | 5.72 | 8.33 | 11.16 | 6.49 | 7.21 | -94.11 | -231.55 | -112.5 | -30.33 | -98.7 | -28.65 |
| ROA(%) | 1.64 | 3.3 | 5.83 | 2.46 | 3.76 | -27.96 | -50.28 | -36.69 | -15.63 | -100.28 | -104.09 |
| ROE(%) | 8.03 | 13.14 | 18.15 | 7.03 | 9.91 | -88.93 | 0 | 0 | 0 | 0 | 0 |
| ROCE(%) | 11.57 | 12.02 | 14.47 | 10.86 | 11.73 | -25.86 | -51.57 | -32.76 | -19.75 | -218.35 | 0 |
| Receivable days | 98.74 | 137.03 | 127.64 | 158.15 | 202.96 | 497.38 | 731.32 | 480.92 | 237.13 | 94.72 | 14.52 |
| Inventory Days | 422.65 | 369.31 | 310.89 | 340.38 | 305.79 | 617.29 | 761.77 | 491.48 | 380.6 | 179.09 | 0 |
| Payable days | 77.92 | 53.48 | 74.85 | 114.98 | 62.87 | 63.66 | 122.42 | 173.18 | 161 | 40.89 | 18.67 |
| PER(x) | 0 | 0 | 9.89 | 16.04 | 19.19 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 1.42 | 1.09 | 1.8 | 2.47 | -2.13 | -0.82 | -0.46 | -0.15 | -0.1 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 1.62 | 1.34 | 1.84 | 1.58 | 1.9 | 3.39 | 6.82 | 5.88 | 4.05 | 2.95 | 4 |
| EV/Core EBITDA(x) | 8.09 | 6.65 | 9.01 | 8.83 | 11.32 | -4.73 | -7.68 | -8.22 | -16.05 | -3.69 | 27.91 |
| Net Sales Growth(%) | 19.73 | 23.33 | 44.48 | 10.42 | 13.55 | -56.26 | -43.75 | 14.35 | 32.06 | 18.24 | -12.02 |
| EBIT Growth(%) | 21.34 | 28.52 | 51.31 | -8.22 | 13.02 | -299.62 | -47.87 | 56.2 | 54.4 | -365.06 | 111.31 |
| PAT Growth(%) | 31.55 | 140.27 | 120.35 | -49.04 | 55.04 | -761.74 | -38.29 | 44.47 | 63.95 | -277.31 | 74.18 |
| EPS Growth(%) | -1.11 | 121.64 | 62.11 | -49.04 | 55.04 | -761.75 | -38.29 | 44.47 | 63.95 | -277.31 | 74.18 |
| Debt/Equity(x) | 2.56 | 1.7 | 1.24 | 1.24 | 1.03 | 3.09 | -3.41 | -1.84 | -1.57 | -0.98 | -1.01 |
| Current Ratio(x) | 1.41 | 1.54 | 1.61 | 1.63 | 1.68 | 1.27 | 0.81 | 0.56 | 0.49 | 0.09 | 0.01 |
| Quick Ratio(x) | 0.54 | 0.64 | 0.73 | 0.73 | 0.78 | 0.58 | 0.46 | 0.25 | 0.17 | 0.06 | 0.01 |
| Interest Cover(x) | 1.4 | 1.56 | 2.09 | 1.41 | 1.66 | -3.17 | -4.34 | -1.79 | -4.3 | -6943.08 | 0.3 |
| Total Debt/Mcap(x) | 0 | 0 | 0.87 | 1.14 | 0.57 | 1.25 | 1.6 | 2.26 | 3.43 | 6.32 | 10.35 |
| # | Sep 2017 | Mar 2018 | Sep 2018 | Mar 2019 | Sep 2019 | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.32 | 60.32 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.68 | 39.68 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2017 | Mar 2018 | Sep 2018 | Mar 2019 | Sep 2019 | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -13% | +12% | -3% | -1% |
| Operating Profit CAGR | — | — | — | -4% |
| PAT CAGR | — | — | — | 0% |
| Share Price CAGR | +6% | -6% | -13% | -20% |
| ROE Average | 0% | 0% | 0% | -3% |
| ROCE Average | 0% | -79% | -64% | -26% |
| # | Sep 2017 | Mar 2018 | Sep 2018 | Mar 2019 | Sep 2019 | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.29 | 60.32 | 60.32 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.71 | 39.68 | 39.68 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2017 | Mar 2018 | Sep 2018 | Mar 2019 | Sep 2019 | Mar 2020 | Sep 2020 | Mar 2021 | Sep 2021 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 |
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