Incorporated in 1994, Heranba Industries Ltd is engaged in the manufacturing of a diverse range of agrochemicals such as insecticides, herbicides, fungicides, and public health products for pest control. Based in Vapi, Gujarat, Heranba Industries is a crop protection chemical manufacturer, exporter, and marketing company. It manufactures Intermediates, Technicals, and Formulations.
The company is India's leading agrochemical player, manufacturing Synthetic Pyrethroids and their intermediates. It is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin, etc. Heranba Industries Ltd specializes in the production and distribution of crop protection chemicals, public health products, and other agrochemicals. Their top products include insecticides, fungicides, herbicides, bio-pesticides, and plant growth regulators.
Heranba Industries' business verticals include:
- Domestic Institutional Sales of Technicals: Manufacturing and selling Technicals in bulk to domestic companies.
- Technicals Exports: Exports of Technicals in bulk to customers outside India.
- Branded Formulations: Manufacturing and selling Formulations under its own brands through its own distribution network in India.
- Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India.
- Public Health: Manufacturing and selling of general insect control products.
The company has established a strong distribution network across India, with more than 9,400 distributors/dealers sponsored by its 21 stock depots spread across 16 states and one Union Territory. The company has a diverse and stable client base, with the top ten clients contributing to not more than 20% of the company's revenues.
The company has obtained registrations for 371 Technicals and Formulations in 41 countries across the Middle East, CIS, Asia, South East Asia, and Africa. Heranba Industries has also expanded internationally, establishing a presence in China with an office in Titanning District, Changzhou, Jiangsu.
The company currently has a market capitalization of Rs 1,031 crore.
For the latest quarter ended 2024, on a consolidated basis, Heranba Industries Ltd reported a loss of Rs -10.37 crore on a total income of Rs 341.56 crore. For the full year ended 2024, Heranba Industries Ltd had posted a profit of Rs 34.50 crore on a total income of Rs 1,257.07 crore.
- Revenue from Operations: Rs 737.87 crore in H1 FY2025 as compared to Rs 707.13 crore in H1 FY2024 (a 4.3% increase).
- EBITDA: Rs 104.04 crore with EBITDA Margins at 14.10% in H1 FY2025 as compared to Rs 47.90 crore with EBITDA Margins at 6.77% in H1 FY2024 (a 117% increase).
- Profit After Tax: Stood at Rs 54.26 crore in H1 FY2025 as compared to Rs 21.3 crore in H1 FY2024 (a 154.7% increase).
- Revenue (TTM): Rs 1,332.87 crore (as of April 2025)
- Net Profit Margin: 5.8% (TTM)
- P/E Ratio: 20.19 (as of April 2025)
- P/B Ratio: 1.00 (as of April 2025)
- 52-Week High: Rs 562.00
- 52-Week Low: Rs 208.00
As of March 31, 2024, the company has two 100% wholly-owned subsidiary companies, namely Mikusu India Private Limited and Heranba Organics Private Limited. The company also has one Step-Down Subsidiary Company, Daikaffil Chemicals India Limited, which was acquired in 2024 to set up a world-class R&D centre in Tarapur, Maharashtra.
Heranba Organics Private Limited has started commercial production from its Saykha Unit Phase-I.
During FY2020, a new Wholly-Owned Subsidiary Company was incorporated in China under the name of Chang Zhou Heranba Crop Science and Technology Co., Ltd. This expansion demonstrates the company's commitment to international markets and strengthening its global presence.
The company has recently acquired additional plots at Saykha and Sarigam, both situated in Gujarat, India. These acquisitions are part of their growth plans, where the company intends to develop more advanced Technicals with the help of its in-house Research & Development. This expansion indicates the company's focus on enhancing its manufacturing capabilities and research initiatives.
Raghuram K. Shetty, Managing Director of Heranba Industries, commented: "I am pleased to report that we have maintained our growth momentum in the first half of FY25 by reporting a strong set of numbers. We saw an increase of 5% in our revenues and 54 crore PAT in H1 FY25. Our continued growth trajectory in yet another year and quarter shows the strong and resilient DNA that we are built on."
Over the past 6 months, the Heranba Industries share price has decreased by 53.15%, and in the last one year, it has decreased by 25.59%. Heranba Industries' shares fell 11% to a 52-week low after reporting a Q3 FY2025 loss of Rs 10.19 crore, despite a 13.9% revenue increase. Rising expenses and weak export demand contributed to the decline.
The key valuation ratios of Heranba Industries Ltd currently, when compared to its past, seem to suggest it is in the Undervalued zone. Promoter holding in Heranba Industries Ltd has remained stable at 74.94% as of March 2025 from 74.94% as of June 2024.
Heranba Industries Ltd continues to be a significant player in India's agrochemical sector, with its integrated manufacturing capabilities, diverse product portfolio, and extensive distribution network positioning it well for future growth despite recent financial challenges.
