Micro-cap agrochemical company received a domestic purchase order worth Rs 2,15,03,125

Aristo Bio-Tech & Lifescience Limited has announced securing a significant domestic purchase order, valued at Rs 2,15,03,125 (Rupees Two Crore Fifteen Lakh Three Thousand One Hundred and Twenty-Five Only), exclusive of GST. The contract, received via email on October 7, 2025, is for the supply of the agrochemical MOVONDO. This order is expected to positively impact the company's financial performance by enhancing its customer base and contributing directly to profitability. The execution period for this supply contract is set to run until October 20, 2025. The company stated that it looks forward to executing this project efficiently, emphasising the positive development for its business operations.

The purchase order outlines several key terms and conditions designed to ensure smooth execution and compliance. Payment is slated to be made within 45 days of the delivery date. Crucially, the terms stress adherence to proper documentation, including a mandate that a single invoice must not contain multiple Purchase Order (PO) numbers, and that dispatched quantities cannot exceed the PO quantity without explicit consent. Furthermore, there are specific stipulations regarding GST liability, with the purchaser (likely Syngenta, based on the reference) reserving the right to detain the GST amount from outstanding bills if the liability arises due to disallowance at a later stage. These detailed conditions highlight the need for strict procedural discipline throughout the execution of the supply agreement.

About the Company

Aristo Bio-Tech & Lifescience Ltd (ABTL), incorporated in 2005, is an ISO 9001:2008 certified company specialising in the manufacturing, formulation, supply and packaging of a wide range of pesticides and agrochemicals. Its extensive product portfolio includes insecticides, herbicides, fungicides and plant growth regulators, with 257 products currently registered with CIB&RC for both domestic and international markets. The company produces popular brands such as Machete, Lasso, Fastmix, Roundup Speed, Seamer and Vam C (Ramban), all processed at its dedicated Pesticides Formulation & Packaging Unit in Savli, Vadodara, which features separate plants for different chemical formulations.

The stock of the company was listed on the NSE as an SME company with a lot size of Rs 1,600 equity shares. As of March 2025, the promoters own a 73.42 per cent stake and the rest 26.58 per cent stake is owned by the public. The company has a market cap of Rs 94 crore. The shares of the company have a PE of 20x whereas the industry PE is 37x. The stock is up over 50 per cent from its 52-week low of Rs 84.55 per share.

Disclaimer: The article is for informational purposes only and not investment advice.