• 25
  • May

Ajooni Biotech Ltd-Company Scan

Ajooni has portfolio of a wide range of PURE VEG. Quality Cattle feed, PURE VEG. Cattle feed Chips, PURE VEG. Camel Feed, Cotton Oil Cake, Mustard Oil Cake & wide range of PURE VEG. Feed supplements to cover the entire life-cycle of an animal.

 

Ajooni Biotech Limited announce ...

 

Incorporated in 2010 Ajooni Biotech Ltd is a PURE VEG Animal Health Care solutions company. It is a significant player in the animal feed and aquaculture sectors

The company's right issue is ongoing and the details for the same are given below:

Ajooni Biotech Issue Details

Values

Category

Right Issue

Right Issue Issue Size (Shares)

8.76 Cr Shares

Right Issue Issue Size (Amount)

₹43.81 Cr

Face Value

₹2 Per Equity Share

Right Issue - Issue Price

₹5 per share

Right Issue Entitlement

1 Rights Equity Share(s) for every 1 fully paid-up Equity Shares held on Record Date

Right Issue Terms of payment

Full amount of Rs.5.00 per Equity Share is payable on application.

Listing At

NSE

BSE Code

 

NSE Code

AJOONI

Ajooni Biotech Right Issue Data

 

Right Issue Data

Date

Right Issue Issue Open Date

21st May 2024

Right Issue Issue Close Date

31st May 2024

Basis of Allotment Finalisation Date

6th Jun 2024

Refunds Initiation

27th May 2024

Credit of Shares to Demat Account

11th Jun 2024

Right Issue Listing Date

14th Jun 2024

Ajooni Biotech Issue Details

Ajooni Biotech Issue Details

Values

Category

Right Issue

Right Issue Issue Size (Shares)

8.76 Cr Shares

Right Issue Issue Size (Amount)

₹43.81 Cr

Face Value

₹2 Per Equity Share

Right Issue - Issue Price

₹5 per share

Right Issue Entitlement

1 Rights Equity Share(s) for every 1 fully paid-up Equity Shares held on Record Date

Right Issue Terms of payment

Full amount of Rs.5.00 per Equity Share is payable on application.

Listing At

NSE

BSE Code

 

NSE Code

AJOONI

 

About Company: 

KEY POINTS

1. Business Overview:

ABL was incorporated in February 2010 and was promoted by Mr Jasjot Singh (chairman and managing director). It manufactures a variety of compound animal feed such as cattle feed, cattle feed chips, camel feed, cotton oil cake, mustard oil cake and a wide range of feed supplements. Facilities in Khanna, Punjab, have a total installed capacity of 60,000 MTPA.

2. Product & Brands : 

a)Cattle Feed ( PURE VEG ):

Calf starter, heifer, dairy calf grower, low yield cattle, basic milking cattle, and high yield cattle under brand names viz. Diamond Wonder, Winner, Eco, Milk Booster, Hiffer /grower, Nurture Calf Starter, Buff Power.

b) Feed Supplements( PURE VEG ):

Liquid calcium, liver tonic, mineral mixture, ultra tonic, Digestive powder, and multivitamins under brand name viz. Caltus, 4 U, Livtus, Rumitus, Autovita, Mustmin, Mactinox

3.Manufacturing Capacity:

Company has 2 production facilities in Khanna, having a total installed Cattle Feed & Feed Supplements capacity of ~1.60 Lac MTPA and 1 unit in Saharanpur with a Feed Supplement Capacity of ~30 Lakhs LPA .

4.International Grant:

On February 13th, 2023, the company submitted a grant application to Grow More Foundation, a US organization, in collaboration with Acsen HyVeg (P) Ltd., Gurgaon, and a European Company (Energia Tech s.r.o. in Vienna) on Techno-Economic Feasibility Analysis of Moringa & Camelina & Further Enhancement of its cultivation with a budget of ~$99,972 in the first year for all 3 companies

5.Collaboration with Avon:

On April,24, Avon Animal Health (One of the leading companies in Bangladesh) collaborated with ABL for purchasing cattle feed supplements 

    Debt-to Equity                                                                                                   

Debt-to Equity       

    Current Ratio      

 

     Revenue & EBITDA                                                                                              

 

EPS                 

Business & Revenue Model:

Ajooni has portfolio of a wide range of PURE VEG. Quality Cattle feed, PURE VEG. Cattle feed Chips, PURE VEG. Camel Feed, Cotton Oil Cake, Mustard Oil Cake & wide range of PURE VEG. Feed supplements to cover the entire life-cycle of an animal.

Financial Highlights 

AJOONI BIOTECH LTD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Narration

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24

Trailing

Best Case

Worst Case

Sales

                   7.21

                 13.23

                 28.53

                 42.28

                 39.65

                    40.03

                 50.82

                 74.04

                 74.48

                 80.11

                 80.11

              93.23

              86.17

Expenses

                   7.08

                 13.00

                 27.86

                 41.35

                 38.97

                    38.79

                 49.18

                 70.96

                 71.71

                 77.87

                 77.88

              89.93

              83.77

Operating Profit

                   0.13

                   0.23

                   0.67

                   0.93

                   0.68

                      1.24

                   1.64

                   3.08

                   2.77

                   2.24

                   2.23

                3.30

                2.40

Other Income

                   0.01

                        -  

                   0.05

                   0.22

                   0.34

                      0.06

                   0.02

                   0.03

                   0.29

                   2.19

                   2.19

                     -  

                     -  

Depreciation

                   0.03

                   0.07

                   0.19

                   0.31

                   0.44

                      0.49

                   0.58

                   1.11

                   1.00

                   0.87

                   0.87

                0.87

                0.87

Interest

                        -  

                   0.02

                   0.14

                   0.35

                   0.11

                      0.33

                   0.58

                   0.54

                   0.48

                   0.56

                   0.55

                0.55

                0.55

Profit before tax

                   0.11

                   0.14

                   0.39

                   0.49

                   0.47

                      0.48

                   0.50

                   1.46

                   1.58

                   3.00

                   3.00

                1.88

                0.98

Tax

                   0.03

                   0.04

                   0.11

                   0.10

                   0.07

                      0.14

                   0.13

                   0.41

                   0.45

                   0.84

                   0.83

28%

28%

Net profit

                   0.07

                   0.10

                   0.28

                   0.39

                   0.41

                      0.35

                   0.37

                   1.05

                   1.12

                   2.16

                   2.15

                1.36

                0.71

EPS

                   0.13

                   0.18

                   0.36

                   0.03

                   0.03

                      0.02

                   0.02

                   0.05

                   0.06

                   0.12

                   0.12

                0.08

                0.04

Price to earning

 

 

 

               231.35

               142.60

                    87.46

               393.00

               306.73

                 54.59

                 42.26

                 52.98

            114.14

              52.98

Price

                        -  

                        -  

                        -  

                   7.06

                   4.35

                      1.67

                   7.40

                 16.39

                   3.49

                   5.21

                   6.50

                8.85

                2.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

 

 

 

OPM

1.80%

1.74%

2.35%

2.20%

1.72%

3.10%

3.23%

4.16%

3.72%

2.80%

2.78%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRENDS:

10 YEARS

7 YEARS

5 YEARS

3 YEARS

RECENT

BEST

WORST

 

 

 

 

 

 

Sales Growth

30.68%

15.89%

15.10%

16.38%

7.56%

16.38%

7.56%

 

 

 

 

 

 

OPM

3.02%

3.13%

3.43%

3.54%

2.78%

3.54%

2.78%

 

 

 

 

 

 

Price to Earning

               163.87

               163.87

               156.17

               114.14

                 52.98

            114.14

              52.98

 

Management & Shareholding Pattern:

 

NAME

HOLDING (%)

JASJOT SINGH

15.16%

UPNEET KAUR

3.96%

ASHMEET KAUR

3.63%

PARMJEET KAUR

3.63%

ISHNEET KAUR

0.05%

HEALTHY BIOSCIENCES LIMITED

0.01%

Bodies Corporate

0.01%

Objects of the Issue:
 

The Company proposes to utilize the proceeds from the Issue towards funding the following objects :

1.To Finance Expenditure towards Acquisition of Land, Site Development and Other Civil Work;
2.To Acquire the Plant & Machinery;
3.To part finance the working capital requirement; corporate purposes;
4.To meet the expenses of the Issue.
 
Importance Of MORINGA 

 

Moringa is regarded as a miraculous tree due to the utilization of every part of it.

 • Renewable energy: Moringa oil is made from crushing moringa seed and moringa oil is having characteristics of making aviation oil.

 • Biodiesel from moringa oil. It is successfully used in different parts of world as a raw material for manufacturing of Biodiesel.

 • Bark of Moringa is used to make charcoal and it is further processed and can be used in Electric vehicle as Lithium. ( Research papers are already published regarding this )

 • Moringa leaves are used in Nutraceutical Industries as Raw material.

• Moringa leaves are anti inflammatory in nature due to the presence of isothiocyanates.

• Moringa leaves stabilize blood sugar.

• Moringa leaves are rich in amino acid and 18 types of amino acids are found in Moringa.

• Moringa branches are shredded in small pieces and are used as a fodder.

• Moringa oil cake is a rich source of oil and Protein and can be replaced by Mustard cake, Cotton cake & this further reduces the cost of Animal feed.

 • Moringa used in PURE VEG. Cattle feed improves the nutritional value of feed & it improves the overall health of cattle and increases milk by 10 to 15% of cattle.

Ajooni Biotech Limited anticipates generating an additional expected annual revenue of ₹150-200 crore from its Moringa operations, with projected profit margins of 40-50% from FY25-26 Onwards.

 With the PURE VEG cattle feed and supplement feed operations running on autopilot, Ajooni Biotech Limited is now focusing on Moringa. Successful research and commercial production are set to commence in FY 2025-26.

Key customers 

     

 

What drives us

VISION--

   

 To become “World's best PURE VEG. animal health care solution company.”

MISSION-

1. To provide added-value to livestock farmers & consumers through the guiding principles of quality, innovation & sustainability

2. To develop cost-effective solutions to improve animal productivity & milk yield

 3. To endeavor to attain a position of leadership in the field of PURE VEG. animal feed

 4. To provide products & services of high- and consistent-quality products & ensuring value for money to our customers

Management Overview

                           MR. GURMEET SINGH BHATIA (Founder & Promoter)

 

Mr. Gurmeet Singh Bhatia, founder & promoter of Ajooni Biotech Limited, boasts a career spanning over 40 years, marked by a strategic mindset and a results-oriented approach. His leadership has been pivotal in expanding business operations across diverse territories and regions, driving revenue growth and market penetration. Mr. Bhatia's adeptness in developing and executing business plans aligned with organizational objectives has been instrumental in navigating complex landscapes and capitalizing on emerging technologies. With expertise spanning sectors like Security Printing, Renewable Energy, Agri-Biotechnology, Vet-Pharma, and animal healthcare, he has effectively utilized his skills in finance, marketing, human relations, and operations to deliver results consistently. Mr. Bhatia believes that passion, patience, persistence, and perseverance form an unbeatable combination for success.

Experienced Team Leader 

 

Awards & Recognitions: • National Awards: “NATIONAL AWARDS “ by Ministry of MSME-Govt. of India for two consecutive years in 2000 and 2003. • President of India Award: Dr. A.P.J. Abdul Kalam , the then President of India conferred President Award of Best Entrepreneur in MSME in the year 2005. • Excellence Award : By Department of Industries, Govt. of Punjab • 1 st Quality Award: By State Government of Punjab. • Udyog Shree Award: By Economic Development Council in recognition of his achievements as First generation entrepreneur. • Best Ethics Company Award: By Times of India. • Good Management Practices Adoption Award: By Association of Corporate Industries of India

     JASJOT SINGH

 

(Chairman & Managing Director)

Mr. Jasjot Singh has rich experience of over 14 years in the PURE VEG. animal healthcare, pharmaceuticals & biotechnology sectors. A leading young entrepreneur, he has valuable leadership & board experience in the pharma & biotech sectors. Mr. Singh has received the Excellence Award from the Punjab government’s Department of Industries. He has also been awarded the 1st Quality Award by the Centre for International Trade & Industry and Udyog Shree Award for young entrepreneurs by Economic Development Council. Mr. Singh is an MBA from Oxford University, UK.

GURSIMRAN SINGH

 (Director)

Mr. Gursimran Singh has more than 12 years’ experience across animal husbandry, agriculture, pharmaceuticals & biotechnology. He has extensive experience in the marketing of agriculture & animal husbandry products including valuable leadership & board experience. Mr. Singh is also involved in social & community causes and has been a President of the Rotaract Club of Rotary International. Mr. Singh is an MBA from Gian Jyoti Institute of Management & Technology, Punjab & a commerce graduate from Panjab University

   

Industry Overview :

Driving Growth   

• The compounded cattle feed (CCF) industry is experiencing rapid growth across India, particularly in rural regions, indicating significant potential for branded cattle feed products.

• With India having largest Cattle population Ranking 1st in the world, there is a projected 4% annual growth rate in cattle numbers, highlighting substantial opportunities in the feed industry.

• India Ranking 1st in Global Milk production.

• Milk yield is far below the global average.

• Cattle feed is the main component of cost of milk.

• Despite this potential, current levels of feed production in India are below market capacity. The industry is gradually transitioning into a more organized sector, adopting modern techniques and global best practices. While historically, feed production lacked scientific methods, interventions by major players like Cargill in 2006 led to the adoption of more advanced production methods

• Although the industry shows promise, the majority of feed production remains fragmented, primarily consisting of home and custom mixers.

• India stands as one of the largest and fastest-growing cattle feed markets globally, with the market size reaching approximately USD 13.8 billion in 2022. Projections suggest a further growth to around USD 17.4 billion by 2028, with a compound annual growth rate (CAGR) of 4% between 2023 and 2028.

• Given India's significant livestock population and the anticipated 4% growth rate, the Indian cattle feed industry holds considerable growth potential.

Chart of  AJOONI BIOTECH LTD 

Growth plan after Right Issue

 

In the initial phase of this expansion, the company has rapidly appointed over 100 Dealers across India, signalling a proactive approach to establishing a strong nationwide presence. By leveraging a high-calibre team of professionals who share the company's vision, the focus is on bolstering the dealer and distributor network. With plans to surpass 300 Distribution Points by the end of the quarter, the company aims to solidify its position as a leading provider of PURE VEG. Cattle feed and Supplements in the industry.

Furthermore, the company is investing in expertise by assembling a team of veterinary doctors and specialists to collaborate closely with the marketing department. Their combined efforts will ensure the development of innovative products and services that meet the evolving needs of farmers and owners of pure vegetarian animals. This commitment to excellence in animal health and welfare underscores the company's dedication to delivering value to its customers and partners alike.

Company dedication to backward integration drive them to cultivate direct relationships with farmers, facilitating ongoing dialogue and ensuring their continuous alignment with the latest agricultural advancements.

AJOONI’S Projection for Next 3 Years

PARTICULARS

FY 2024-25

FY 2025-26 (New plant in operation)

FY 2026-27

Projected Turnover

100.00 – 125.00

200.00 – 210.00

250.00 – 270.00

 

Recommendation by Research Anaylst:

1. Strongly recommendation to subscribe at right issue which is RS. 5 per share as the further growth of the company is wide enough fundamentally and technically both .

2. Both type of Investors can invest short term as well as long term .

3. Bsed on analysis Targets can be Rs 7 per share and Rs 10 per  share .

Disclaimer and Disclosure to Readers:

  • This Report is published by Rajan Shah Investment Adviser (hereinafter referred to as R S Advisory) for private circulation.
  • I am a SEBI Registered Investment Adviser having registration number – INA000014979.
  • I am not affiliated with any other intermediaries, nor do receive any brokerage or commission from any third party.
  • No penalties/directions have been issued by the SEBI under the SEBI Act or any other regulatory body.
  • I do not recommend any stock broker or other intermediary to a client. Nor do I receive any consideration by way of remuneration or compensation or in any other form whatsoever from stock broker or other intermediary.
  • Investments in debt instruments are subject to reinvestment risks as interest rates prevailing on interest amount or maturity due dates may differ from the original coupon of the bond, which might result in the proceeds being invested at a lower rate.
  • If client wants opinion in the specific positions made by him only, I will be able to suggest appropriate view on the securities. Such suggestion/view under any circumstances shall be considered as an opinion (not advice) from our side and I advise client to consider our opinion and not consultancy to make his/her final decision. I am not liable for any losses whatsoever client may incur in accepting this opinion.
  • Rajan Shah Investment Adviser, its associates and employees might have positions or might have recommended to clients which might be in-line with the recommendations made here. Rajan Shah Investment Adviser or their family members may or may not trade or may have investments in the same recommendations.
  • The names of the products/nature of investments do not in any manner indicate their prospects or returns. The performance in the equity products may be adversely affected by the performance of individual companies, changes in the market place and industry specific and macro-economic factors.
  • I do not have any association in any manner with any issuer of products/ securities, this ensures that there are no actual or potential conflicts of interest. This also ensures that objectivity or independence in the carrying on of investment advisory services is not compromised.
  • Investment in market is subject to market risk, though best attempts are made for predicting markets, but no surety of return or accuracy of any kind is guaranteed.
  • The information on the website is updated from time to time. Rajan Shah Investment Adviser however excludes any warranties (whether expressed or implied), as to the quality, consistency, efficacy, completeness, performance, fitness or any of the contents of the website.
  • Client is always advised to read, understand, and agree of terms & conditions & disclaimer of service.
  • I do not guarantee any profit/return.
  • The performance of the investments/products may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems in equity and debt markets.
  • I do not provide any profit/loss sharing services, guaranteed profit services, Demat services.

 

 

 

Breaking News

Visitors : HTML Hit Counters