Praveen’s Portfolio

Hi Praveen,
Your portfolio looks great, but on the agrochemical side, I feel that BestAgroLife might be a better option than generic ones like Sharda and UPL. Despite the current headwinds in the Agrochemical industry, BestAgroLife performed well in quarter 1, thanks to their proficiency in developing and patenting unique product blends.

Furthermore, the management has provided guidance of a 30% compound annual growth rate (CAGR) for the next year. The only downside appears to be the high inventory and receivables, which are common issues among agrochemical companies but are more pronounced in the case of BestAgroLife. However, the management has indicated that these issues will be addressed by the second half of this financial year. Also, BestAgroLife has not yet initiated any exports. Currently, all of their revenue is generated domestically. However, the management has stated that they anticipate an increase in exports starting from the second half of the current financial year.

I would appreciate hearing your perspective on BestAgroLife.