Hello Sir,

Hope you are doing well. 

Last 2 years were not so good for hybrid seeds sellers. There was covid-19 and also excess sales returns.

Source: Nath Bio-Genes website


We went through details of hybrid seeds makers and in general all of them sound bullish for the years ahead.

Below, we have shared interesting insights from the Q2 FY 24 con-call of Nath Bio-Genes (India) which is a leading hybrid seeds seller in India and quotes at less than 10 times earnings.

Hope you find the details useful for your own investments or to add the stock to your watch list.


Info: We have released 2 new stock recommendations in the last few days:

  • 1 Special situation opportunity – Change in ownership along with already strong profitability and growth can result in re-rating of the company to higher valuations. Further, the stock is consolidating in a tight range and the open offer price caps the downside – Details @ click HERE


  • 1 medium-long term investment recommendation – It’s a sub 3,000 crore market cap company wherein the company might double its profit in the next 3-4 years. Details @ click HERE

The above recommendations can be accessed by subscribing HERE


Nath Bio Genes – Insights from Q2 FY 24 con-call of the company

– General

  • We are making good progress on our earlier stated strategy of improving contribution from non-cotton and non-paddy segment
  • The contribution to non-cotton and non-paddy segment increased from 22% in Q1 FY ’21 to 39% in Q2 FY ’24
  • Our dream product basket, consisting of top-ranked cotton hybrid, Sanket; most popular bajra seed, Super-27; three fast-growing paddy hybrids, Dhoom, Dhadak and Dhadak Gold; hybrid tomato, Akhand; and NCH-495, a unique chili hybrid, all have performed exceptionally well and continue to be top ranked performers in the market

– Industry

  • We have faced a very weak monsoon this season, that is kharif 2024. The overall sentiment in the farming community is not that positive
  • This is despite the commodity prices exceeding the minimum support price in practically all the crops like maize, cotton and also paddy
  • The rabi sowing could be impacted because of the weak rainfall

– Cotton seed

  • Cotton remains the cornerstone of the Nath Bio-Genes operations. In H1 FY ’24, the company sold 13.10 lakh cotton packets, making a 17.2% rise over last year

– Paddy

  • We are gradually shifting our focus to hybrid paddy without losing sight of OP paddy. This is because of high-value products
  • The volume H-to-H grew by 32% and the value grew by 38.74%
  • Paddy last year was around 43,000 quintals, which in H1 has crossed almost about 54,000, so 53,901 to be precise
  • Value wise, basic paddy and hybrid paddy contribution is around 50-50

– Bajra seed

  • Our star product, Super-27, is performing extremely well. Lead by this product, the bajra segment grew by 28.78% in value, although the volume growth was only 14.72%

– Vegetable seeds

  • We have grown around 16% over last year. And this year, we are expecting at least minimum 20% growth in FY 24
  • Vegetable last year was around INR 33 crores

– Exports

  • We have been putting a lot of efforts to expand our geographical footprint. And this quarter, we were successful in getting our fusion BTS cotton registered successfully in the Philippines primarily and sales should come in soon
  • Our efforts in other locations, especially Africa, have been getting impacted on account of geopolitical uncertainties

– Guidance

  • I am expecting around 15%-plus on the top line. And we hope to continue to maintain our EBITDA of 16% and the net profit margin of around 14%. This is a guideline for FY 24



Disclaimer: This is not a recommendation to buy/sell Nath Bio Genes. The securities quoted are for illustration only and are not recommendatory.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


SEBI Research Analyst Registration No. INH100001690
Research Analyst Details

Name: Ekansh Mittal     Email Id: [email protected]    Ph: +91 727 5050062

Details of Associate: Not Applicable

Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: http://www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690

Address – 7, Panch Ratan, 7/128, Swaroop Nagar, Kanpur – 208002, Contact No. – +91-7275050062

Compliance Officer – Mr. Ekansh Mittal, +91-9818866676, ekansh@katalystwealth.com

Grievance Redressal – Mittal Consulting, grievances@katalystwealth.com, +91-9818866676, +91-7275050062

“Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”.

“Investment in securities market are subject to market risks. Read all the related documents carefully before investing.”

The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision

This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.

The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.

We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.

Disclaimer: You can access it here – LINK

Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – No

Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No

Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No

Whether it or its associates have received any compensation from the subject company in the past twelve months – No

Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No

Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No

Whether the research analyst has served as an officer, director or employee of the subject company – No

Whether the research analyst or research entity has been engaged in market making activity for the subject company – No