Bharat Global Bags ₹650 Crore Supply Contract From Tata Agro

Bharat Global Developers Ltd. (BGDL), formerly known as Kkrrafton Developers, has been awarded an annual supply contract worth ₹650 crore by Tata Agro and Consumer Products. The agreement, disclosed in an exchange filing today, on December 11, involves the year-round phased delivery of premium agricultural commodities.

Order Book & Revenue Projections

The contract boosts BGDL’s order book to over ₹1,500 crore, which includes collaborations with Reliance Industries and McCain India Agro. The company expects service margins between 11% and 14% from the Tata Agro contract, signalling potential growth in its topline and bottom-line performance.

Commodities to Be Supplied

BGDL will supply a variety of high-demand agricultural items, including tea leaves, coffee beans, organic pulses, coconuts, groundnuts, mustard seeds, sesame seeds, and premium dry fruits like almonds, cashews, nutmeg, and walnuts. The agreement also features periodic payment terms aligned with delivery schedules.

Stock Performance & Market Activity

Shares of BGDL are locked at a 5% upper circuit following the announcement. With a market capitalization exceeding ₹10,800 crore, the stock has seen an 18-fold increase since the beginning of the year. November witnessed intense trading activity, with shares rising for 18 consecutive sessions. The shares of Bharat Global Developers have surged by a major 1,829.37% year-to-date, climbing ₹1,017.86 to reach ₹1,073.50 as of the latest trading session.

Future Outlook

BGDL has indicated that it is in advanced talks with potential clients in the defence and green energy sectors, suggesting further diversification of its operations. The company also talked about its focus on meeting the demand for high-quality agricultural commodities while maintaining supply chain practices.

In Q2 FY25, BGDL reported a 298.03% jump in standalone net profit to ₹10.11 crore, driven by a 300.28% rise in net sales, totalling ₹216.35 crore, compared to Q1 FY25.

In conclusion, this ₹650 crore contract with Tata Agro brings out BGDL’s presence in the agri-commodities sector. With a solid order book and expanding client base, the company continues to pursue opportunities for growth across multiple industries.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.