Subscribe to Heranba Industries: KR Choksey

KR Choksey has come out with its report on Heranba Industries. The research firm has recommended to ''Subscribe'' the ipo in its research report as on February 22, 2021.

Broker Research

February 22, 2021 / 16:43 IST

26 Aug, 2025 12:21

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KR Choksey IPO report on Heranba Industries

Heranba Industries is a crop protection, chemical manufacturer, exporter and marketing company. It started its manufacturing operation in 1996 with production of an Intermediate product CMAC. Heranba manufactures Intermediates, Technicals and Formulations and is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda cyhalothrin etc. Heranba has a network of ~9,400 dealers and access to 21 depots and caters to 16 states and one union territory of India. Heranba has in-house R&D team for product development and improvisation. Its R&D facilities at Unit I and II are recognized by the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India (DSIR) and its new R&D facility at Unit III, Sarigam has become operational from October, 2020. Heranba has 18 Technicals registered for manufacturing and sales in India, 167 Formulation registered for sales in India and 93 Technicals & Formulation registered for manufacturing and sales in export markets.

Valuation and Outlook

Given increasing Indian agrochemical market along with Heranba’s expanding geographical footprint, further scope to expand its capacity on current available land, debottlenecking of current facility, new product pipeline and higher return ratios compared to its peers, we expect the IPO to be fairly priced at 25.7x FY20 EPS and hence provide a “SUBSCRIBE” rating on the stock.

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