Monsanto hits 20% circuit

Monsanto India, subsidiary of USA based Monsanto Company, is locked on the 20% upper circuit today at Rs.1131.20 or up Rs.188. This is a new 52-week high. Volumes are up almost 4.5 times.

The market is reacting positively to Q3FY14 results which the company declared on Friday. The company posted a whopping 124% (YoY) jump in net profit at Rs.65 crore, which sequentially, rose over 8 times. This robust growth in bottomline was on account of a very good topline at Rs.182 crore, up 62% (YoY). This is the peak season for such agri companies for rabi sowing and seasonally, Q4 will be weaker but the current Q3 has been a bumper for the company, given the very good monsoon and rich kharif harvest.

The company, till end of 9MFy14 had posted a net profit at Rs.129 crore v/s Rs.67 crore for FY13; clearly, even if Q4 remains weak, it will end Fy14 on a bumper note. Typical of a MNC, the company is debt free, promoters stake is 72.14% and reserves stands at Rs.390 crore.