The investment, aimed at enhancing AA Plus Tradelink’s product portfolio, will see the company distributing these agricultural essentials in both domestic and international markets over the next six months.
AA Plus Tradelink Ltd, a leader in the trading of commodities, has informed exchanges about the investment of Rs. 441 million into specialized fertilizers and pesticides through a purchase from MURAE ORGANISOR Ltd. This venture marks a pivotal shift for AA Plus Tradelink, traditionally known for trading in a variety of commodities including metals, petroleum, and petrochemical products, as it now enters the advanced agricultural products market.
These products purchased will be sold with a profit margin of 8% to 13% i.e. the company will make a profit ranging in between Rs. 35 Million to 57 Million over the span of the next 12 Months which is roughly a 2000% increase.
The investment, aimed at enhancing AA Plus Tradelink’s product portfolio, will see the company distributing these agricultural essentials in both domestic and international markets over the next six months. The move is strategically aligned with global market trends, particularly in regions experiencing rapid agricultural development, ensuring AA Plus is positioned to meet the growing demand for high-grade fertilizers and pesticides.
Financially, AA Plus Tradelink has been performing robustly, with a revenue growth of 32.96% over the past three years, culminating in a significant 48.86% increase last year alone, bringing annual revenue to ₹17.17 Crores. This growth substantially exceeds the sector’s average and is complemented by a net profit rise of 10.54% last year. The company has maintained a strong liquidity position, evidenced by a current ratio of 2.82, and has kept its debt levels exceptionally low with a Debt to Equity ratio of just 0.15.
Moreover, the company’s strategic financial management has resulted in an efficient cash conversion cycle of -22.09 days, demonstrating rapid investment turnover into cash. This efficiency, along with a notable interest coverage ratio of 4024.12, positions AA Plus Tradelink favourably for sustaining its growth trajectory and capitalizing on emerging market opportunities.