BHARAT RASAYAN LIMITED

Bharat Group is the brainchild of a visionary Sat Narain Gupta, one of the pioneers of agrochemicals industry in India. Active in this arena since 1977, he initially floated Bharat Pesticides Manufacturing Company. In this venture, he found two like-minded partners in, Mahabir Prasad Gupta and Rajender Prasad Gupta. Today, their joint efforts have borne rich fruits as Bharat Group has created a niche in diverse segments of pest control within the country and abroad too. Currently, Bharat Rasayan Ltd. is the flagship enterprise of the conglomerate alongside the two sister concerns, Bharat Insecticides Limited (BIL) and BR Agrotech Limited (BRAL). The products portfolio consists of a wide spectrum of high quality eco-friendly pesticides, fungicides, herbicides, acaricides etc. to cater to every arena in the agricultural sector of crops (food and commercial), horticulture and floriculture, in applications for public health, house-keeping and veterinary treatment besides loss prevention in warehouses, depots and granaries. Apart from these, the group has also forayed into the packaging industry on an encouraging note. The financials of the company is very good, RoNW is 22.21% and at CMP its looks fully priced. Price difference is around 10% and acceptance ration as per current share holding for retail will be around 3%, so we may expect the final acceptance ratio may be around 3% if promoters take part in buyback, otherwise around 10%, so profit may be 1% to 5%. So we give NEUTRAL rating to this buyback.