Dhanlaxmi Crop jumps after receiving 42 seed products rights from Janki Seeds

Shares of a technology-driven seed company engaged in the development, production, processing, & supply of hybrid & open-pollinated seed surged 2.4 percent on Thursday, after strengthening market presence with seed acquisition and securing government approval.

Price Movement

With a market cap of Rs. 97 crores, the shares of Dhanlaxmi Crop Science Limited closed in the green at Rs. 59.4 on NSE, up by 2.4 percent, as against its previous closing price of Rs. 58. The stock hit its 52-week high at Rs. 110 on 17th December 2024, and compared to its closing price of Rs. 59.4, the stock is trading at a discount of nearly 46 percent.

What’s the news

Dhanlaxmi Crop Science Limited has made a strategic move to expand its portfolio by acquiring the intellectual property of 42 seed products from Janki Seeds and Research Pvt Ltd. (JSRPL), according to recent regulatory filings with the NSE. This acquisition, valued at Rs. 1.44 crore, further solidifies Dhanlaxmi’s dedication to advancing agricultural innovation.

It also grants Dhanlaxmi exclusive access to vital germplasm, along with associated nucleus, breeder, foundation, and truthful seeds, strengthening its research capabilities and expanding its market presence. 

This development is expected to improve productivity and profitability for farmers, while aligning with the company’s broader goal of driving sustainable growth in the agricultural sector.

Strategic Acquisition Details

Dhanlaxmi entered into an agreement with JSRPL for the sale of intellectual property, which involves the transfer of 42 seed products.  The deal includes a per-variety cost of Rs. 2 lakh (totalling Rs. 84 lakh) and an additional Rs. 60 lakh for the acquisition of germplasm.

The acquired seed products span a wide variety of crops, including gram, jowar, maize, sunflower, sweetcorn, tomato, tur, wheat, bajra, okra, bottle gourd, brinjal, cabbage, cauliflower, chilli, cowpea, cucumber, moong, paddy, sorghum sedan, soybean, and sponge gourd. JSRPL is a well-established entity in the seed industry, specializing in the research, production, and marketing of various agricultural crops (excluding cotton).

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Government approval & market expansion

Dhanlaxmi has secured government approval for 40 out of the 42 acquired seed products, along with permission for their production and sales in Maharashtra. Among these, Paddy, India’s most widely cultivated crop, is expected to generate significant demand in the region.

The acquisition includes six research-grade paddy varieties and one hybrid variety, ensuring that farmers in Maharashtra have access to high-quality seeds. This move strengthens Dhanlaxmi’s commitment to promoting innovation and sustainability in the agricultural sector.

Financials

Dhanlaxmi Crop reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 37 percent, rising from Rs. 46.6 crores in FY23 to Rs. 63.7 crores in FY24. Similarly, during the same period, the company’s net profit increased from Rs. 3 crores to Rs. 4.65 crores, representing a growth of around 55 percent YoY.

About the company

Founded in 2005, Dhanlaxmi Crop Science Limited is a technology-driven seeds company engaged in the development, production, processing, & supply of hybrid & open-pollinated seeds for a wide range of field crops and vegetables, ensuring better quality and higher yields suited to diverse agroclimatic conditions.

Written by Shivani Singh

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