Heranba Industries Ltd. share price target

Heranba Industries are a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. Company manufactures intermediates, technicals and formulations.. Company return ratios are superior to peers (ROE is above 30%). Company has a strong financial position and has been generating positive cash flow. We expect a good listing for the Company.

Heranba Industries Limited IPO Note Issue Open: Feb 23 Feb 25, 2021, Price Band: Rs. 626 627, *Issue Size: 9,971,938 eq shares, (Fresh Issue of 9,56,938 eq sh+ Offer for Sale of 9,015,000 eq sh), *Issue Size: Rs. 624.24 625.24 cr, Reservation for: QIB Upto 50% eq sh, Non Institutional atleast 15% eq sh, Retail atleast 35% eq sh

Heranba is one of the leading domestic producers of pyrethroids (~68% of FY20 revenues; 19.5% domestic market share in 2019). It is in the entire value chain of synthetic pyrethroids that provides flexibility to shift between products depending on the demand-supply and pricing dynamics. The company also has a strong pending product pipeline in pyrethroids including formulations filed by partners in domestic, export markets. Apart from this, more than half of the global demand for Pyrethroids comes from China. Hence, due to shutdown of chemical plants in China amid pollution,...

Promoted by Mr. Sadashiv K Shetty and Mr. Raghuram K Shetty, Heranba Industries Ltd. is an integrated player (intermediates, technical and formulations) in crop protection business. It is a market leader of synthetic pyrethroids in India with market share of ~20%. Leveraging its cost leadership status, the company plans to commercialize few molecules (2 fungicides, 2 herbicides and an insecticide) which are going off-patent. Garnering own registrations & for distribution partners in overseas markets of Europe & NAFTA (2 received, 3 pending), ramping up formulation business (59%...

Promoted by Mr. Sadashiv K Shetty and Mr. Raghuram K Shetty, Heranba Industries Ltd. is an integrated player (intermediates, technical and formulations) in crop protection business. It is a market leader of synthetic pyrethroids in India with market share of ~20%. Leveraging its cost leadership status, the company plans to commercialize few molecules (2 fungicides, 2 herbicides and an insecticide) which are going off-patent. Garnering own registrations & for distribution partners in overseas markets of Europe & NAFTA (2 received, 3 pending), ramping up formulation business (59%...