Welcome friends, today in this post we have brought another great stock from Fertilizers & Agro Chemicals sector that is performing really well. We are talking about Heranba Industries. We will analyse the revenue, profit and loss and Balance sheet to conclude Heranba share price target 2024, 2025, 2030.
Overview of Heranba Industries
Heranba Industries Limited was established in 1992 by Sadashiv K Shetty and Raghuram K Shetty and offers agricultural products which help farmers increase yields.
The company stands among India’s premier providers of Synthetic Pyrethroids and related components.
Heranba offers an expansive portfolio of insecticides, herbicides, fungicides and public health products designed to serve not only India but also abroad – seeing substantial annual growth!
Heranba serves both Indian and international markets. The company is building its international footprint each year with remarkable expansion across various international markets.
| About Company | Particulars |
|---|---|
| Company Name | Heranba Industries Ltd |
| BSE share code | 543266 |
| NSE share code | HERANBA |
| Sector | Fertilizers & Agro Chemicals |
| Headquarters | Valsad (Gujarat) |
| Foundation Year | 1992 |
| Key Person | Sadashiv K Shetty (Chairman) |
| Market Cap | ₹ 1,447 Cr. |
| 52 Week high | ₹ 426 |
| 52 Week Low | ₹ 265 |
| Official Website | Heranba Website |
Right now the company is operating in 65+ countries. Heranba earns 41% of its revenue from exports.
In India the company operates from fully equipped, modern production sites located in Vapi and Sarigam, two key industrial areas in Gujarat — along with their new facility in Saykha; all equipped to produce top quality agrochemicals.
Their in-house R&D department ensures continuous product and process enhancement for customer satisfaction.
The company is also working on proper waste management as part of their contribution towards environmental preservation.
Product Portfolio
The Co.’s portfolio comprises intermediates, technicals and formulations.
Intermediates
Intermediates manufactured are for Co.’s own captive consumption for manufacturing various Technicals and Formulations. These include CMAC, Bromobenzenes, Meta Phenoxy, etc.
Technicals
These include Cypermethrin, Deltamethrin, Alpha Cypermethrin, Acephate, Lambda Cyhalothrin, etc.
Formulations
Formulations and branding of formulations are a forward integration to Heranba’s technical business. These include Emulsifiable Concentrate (EC), Water Dispersible Granule (WDG), Suspension concentrate, Capsule Suspension (CS), etc.
The company has 400 product registrations in 49 countries,210 registrations in pipeline in 49 countries. 24 Technicals,193 formulations are registered for manufacture & sale in India.68 technicals & 65 formulations are registered for manufacture and sale in export markets.
Heranba share price target table
In this article, we will analyse Heranba industries revenue, net profit, ratios, and other financials to conclude what will be the Heranba share price target 2024, 2025, 2030.
If you do not want to go through our research and stock analysis, then you can refer to the table below for Heranba share price targets.
Heranba share price Target | 1st target | 2nd target |
|---|---|---|
| Heranba share price Target 2024 | ₹ 402.12 | ₹ 404.58 |
| Heranba share price Target 2025 | ₹ 450.89 | ₹ 456.22 |
| Heranba share price Target 2030 | ₹ 728.59 | ₹ 740.55 |
Heranba share price target 2024
| Heranba share price target | 1st | 2nd |
|---|---|---|
| 2024 | ₹ 402.12 | ₹ 404.58 |
Heranba plans on investing a total of 250 crore rupees into its facilities in Sarigam and Dahej. They will make investments of between 160 to 180 crores for further growth and sales of approximately 800 crores from this investment.
As per our analyse the share price target of Heranba in 2024 would be Rs 402.12.
Heranba share price target 2025
| Heranba share price target | 1st | 2nd |
|---|---|---|
| 2025 | ₹ 450.89 | ₹ 456.22 |
This company received approval to expand their production of Pesticides and agricultural chemicals at Sarigam Plant by 24,900 tons per year; previously approved permits also permitted production at Saykha location with 10,680-ton annual manufacturing capacity; additionally they purchased more land at Saykha Industrial Estate and Vapi to increase manufacturing capabilities.
This expansion in the production is necessary for a bright future. Heranba share price should reach Rs 450.89 by 2025.
Heranba share price target 2030
| Heranba share price target | 1st | 2nd |
|---|---|---|
| 2030 | ₹ 728.59 | ₹ 740.55 |
HERANBA has bought two new pieces of land in Gujarat’s Saykha Industrial Estate, with permission granted for an Agro Chemicals factory on one plot by the local pollution authority.
Considering the company keeps expanding and growing at the same pace, Heranba’s share price target should reach Rs 728.59 by 2030.
Also Read: Biogen Pharmachem share price target
Heranba Industries financial ratio analysis
Let’s analyse some financial ratios to get a better idea of how Heranba Industries is currently performing.
| Parameter | Value |
|---|---|
| Market Cap | ₹ 1,447 Cr. |
| Current Price | ₹ 362 |
| High / Low | ₹ 426 / 265 |
| ROCE | 17.7 % |
| ROE | 14.3 % |
| Profit after tax | ₹ 67.6 Cr. |
| Price to Earning | 21.4 |
| Debt | ₹ 88.1 Cr. |
| Sales growth | -10.1 % |
| Profit growth | -51.2 % |
| Industry PE | 38.4 |
| Return over 1 year | 9.60 % |
Market cap and current price
Heranba Industries has a market cap of only ₹ 1,447 Cr which means it is a small cap company. The stock is currently trading at a price of ₹ 362..
P/E ratio
The P/E ratio of 31.1 compared with the industry P/E of 38.2 shows that the stock is neither undervalued or overvalued.
ROCE and ROE
If we talk about the Book value of the share, it is ₹ 207 and unfortunately the ROCE and ROE data of the company is not available. Hence, it is difficult to determine the kind of returns the company is earning on its capital and equity.
Profit after tax
The company’s profit after tax is ₹ 46.4 Cr but the company is paying only a nominal dividend of 0.35 % to its shareholders which is better than nothing.
Debt to Equity
The Debt to equity ratio of 0.11 shows that the company is almost debt free. The total Debt at present is ₹ 88.1 Cr which is not a lot for a company of this size.
The returns of 9.84 % in the last 1 year are insubstantial.
Overall Heranba’s financial ratios suggest that it is a stock with huge potential. However lets just analyze the profit and loss and Balance sheet of the company to find out if this stock is worth your money?.
Heranba Industries Profit and loss
Standalone Figures in Rs. Crores
| Profit & Loss | Mar 2021 | Mar 2022 | Mar 2023 | TTM |
|---|---|---|---|---|
| Sales | 1,219 | 1,450 | 1,324 | 1,272 |
| Expenses | 997 | 1,190 | 1,163 | 1,173 |
| Operating Profit | 221 | 260 | 161 | 100 |
| OPM % | 18% | 18% | 12% | 8% |
| Other Income | 7 | 19 | 14 | 24 |
| Interest | 5 | 4 | 8 | 10 |
| Depreciation | 15 | 20 | 23 | 24 |
| Profit before tax | 208 | 255 | 144 | 90 |
| Tax % | 26% | 26% | 24% | |
| Net Profit | 154 | 189 | 110 | 68 |
| EPS in Rs | 38.54 | 47.25 | 27.52 | 16.88 |
| Dividend Payout % | 4% | 4% | 5% |
Sales
In March 2021, Hernba’s sales were 1219 crore rupees which increased to 1450 crore in March 2022 and then went down to 1324 crores in March 2023. Overall, the sales have gone up which indicates that the demand for the company’s products is rising, the company is acquiring new customers and the marketing efforts are paying off well.
Expenses
Talking about the expenses, they have risen as well but thankfully have stayed below the revenue numbers. In March 2021 the expenses were 997 crores and by March 2023 the expenses have grown to 1167 crores. The possible reasons for rise in expenses could be increased costs of raw materials, labor or increase in marketing expenditure.
Operating Profit
Heranba’s operating profit has increased consistently over the years. However, in March 2023 the operating profit fell to 161 crores from 260 crores of March 2022. Usually a decrease in operating profit means poor cost management or wrong pricing strategies.
Other income
Income from other sources has also fallen from 19 crores to 14 crores which is a minor dip. The reason for fluctuation in other income can be due to factors such as gains/losses on investments, interest income, or one-time non-operating items.
Net profit
Net profit has declined from Rs. 154 Crores in March 2022 to Rs. 110 Crores in March 2023. Despite reduced taxes this is the first time the net profits have fallen for Heranba Industries in the past 7 years. The possible factors that caused the net profit to decrease could be poor financial management, increased interest on debt or operating inefficiency.
Decrease in net profits for Heranba is concerning and the company needs to curtail the expenses and increase sales to raise their net profit.
Balance Sheet of Heranba Industries
Standalone Figures in Rs. Crores
| Balance Sheet | Mar 2022 | Mar 2023 | Sep 2023 |
|---|---|---|---|
| Equity Capital | 40 | 40 | 40 |
| Reserves | 674 | 776 | 805 |
| Borrowings | 91 | 93 | 88 |
| Other Liabilities | 302 | 250 | 443 |
| Total Liabilities | 1,108 | 1,159 | 1,376 |
| Fixed Assets | 193 | 186 | 196 |
| CWIP | 14 | 42 | 55 |
| Investments | 2 | 1 | 1 |
| Other Assets | 898 | 930 | 1,125 |
| Total Assets | 1,108 | 1,159 | 1,376 |
Now let’s analyze the Balance sheet of Heranba industries from March 2022 to September 2023 to find out the changes in the assets and liabilities of the company.
Equity Capital
Heranba has a stable capital structure because the equity capital has remained constant at Rs 40 crore from March 2022 to September 2023 .
Reserves
Looking at the reserves of the company, they have increased from Rs. 674 Crores in March 2022 to Rs. 805 Crores in September 2023. Increased reserves is a good sign and can be due to retained earnings or profits generated during the period.
Borrowings
The borrowings of the company have increased from Rs. 91 Crores in March 2022 to Rs. 93 Crores in September 2023 possibly due to financing for expansion, working capital requirements, or strategic investments.
Fixed assets
If we look at the fixed assets that have decreased from Rs. 193 Crores in March 2022 to Rs. 186 Crores in September 2023 may be due to the depreciation or sale of some assets by the company.
Overall the balance sheet of Heranba Industries shows growth in the financial position of the company. The rise in borrowings or CWIP may be due to potential investments or expansion plans.
Also Read: Ami Organics share price target
Shareholding pattern of Heranba Industries
Numbers in percentages
| Shareholder | Mar 2021 | Mar 2022 | Mar 2023 | Dec 2023 |
|---|---|---|---|---|
| Promoters | 74.15% | 74.77% | 74.90% | 74.95% |
| FIIs | 3.85% | 2.62% | 0.00% | 0.00% |
| DIIs | 4.80% | 1.57% | 1.21% | 0.23% |
| Public | 17.19% | 21.03% | 23.89% | 24.82% |
| No. of Shareholders | 1,10,826 | 92,029 | 94,596 | 88,221 |
If we look at the shareholding pattern of Heranba Industries, there have been some minor changes.
Promoters
From March 2021 the promoters shareholding has increased slightly from 74.15% to 74.95% in December 2023. If promoters do not sell their shares, it is a very good sign that the company does not have any major issues because promoters generally know the nitty gritty of the company.
Foreign Institutional Investors
Foreign Institutional Investors (FIIs) presence is also critical for some investors to trust a company. Unfortunately the presence of FIIs in Heranba is zero at the moment. FIIs had 3.85% share in the company in March 2021 which dropped to 2.62% in March 2022 and then to zero in March 2023. This goes to show that FIIs have either lost faith in Heranba or they have found a better option to invest.
Domestic Institutional Investors
Just like FIIs, the share of DIIs has also dropped to a mere 0.23% in December 2023 from 4.80% in March 2021.
Public
The drop in shareholding of FIIs and DIIs has been captured by the public shareholders whos share increased from 17.19% in March 2021 to 24.82% in December 2023. However the number of shareholders has decreased from 1,10,826 to 88,221.
Conclusion
Heranba Industries is growing at a rapid pace. The company is expanding its reach internationally as well and adding new export counteries every year to its customers list. This is the possible reason why the company has not been able to give great returns in past few years. However, we are optimistic about company’s future because financial fundamentals are good, promoters still trust the company and the company is still profitable. We would dfinitely recommend Heranba for long term investment but please do your own research before investing.
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