Synopsis: Auri Grow India Ltd launches CarbonKrishi, an AI-powered platform aimed at helping farmers generate income through carbon credits, which marks a strategic step for the company to enter the growing carbon credit market and build technology-driven, scalable revenue streams, while also benefiting farmers and the wider agriculture ecosystem.
The shares of this penny stock, which is transitioning its business from cables and conductors to agri-tech and export-oriented business through AI Models, new age carbon credit platforms and more, were in focus upon launching an AI-enabled carbon credit platform aimed to onboard 1 lakh farmers and other initiatives being announced.
With the market capitalization of Rs. 114 Crores, the shares of Auri Grow India Ltd were trading at Rs. 0.77 per equity share , up 3 percent from its previous day’s close price of Rs. 0.74. Over the last month it has delivered a return of 33 percent and its P/E stands at 17.7, whereas the industry P/E stands at 32.2 leading to possible undervaluation.
What is the NEWS:
Auri Grow India Ltd announced the launch of CarbonKrishi, an AI-enabled carbon credit platform that uses AI, satellite imagery, and farm data to estimate the carbon impact of sustainable practices like soil carbon enhancement, organic farming, crop rotation, and efficient water use.
Auri Grow aims to onboard around 1 lakh farmers, which could generate an estimated Rs. 16–50 crore in carbon credit value annually. With a 20–30% platform participation or commission share, the company could potentially earn Rs. 3–10 crore per year from the platform, though these numbers depend on verification and global carbon prices.
Alongside this initiative, the company has accepted a proposal from Hong Kong-based FII, Luminary Crown Ltd, to acquire up to 24% equity stake at Rs. 2 per share, well above the current market price of Rs. 0.75 to Rs.0.80, subject to approvals. This investment could support further strategic projects including rice aggregation, processing and export, hydroponics and aeroponics farming, and organic farming on company land.
These projects are expected to have a combined project cost of around Rs. 55 crore with potential annual revenues of Rs. 180–200 crore and net margins of about 13%, depending on execution and market conditions.
Financial outlook
Auri Grow India Limited, formerly known as Godha Cabcon & Insulation Ltd, is transitioning from being primarily a conductor and cables manufacturer to an agri-tech and export-oriented enterprise, combining Industrial manufacturing capabilities, Digital and AI-driven agricultural solutions and Global export strategies and sustainable farming initiatives.
For FY24-25, the company reported sales of Rs. 175.55 crore and net profit of Rs. 7.17 crore, showing a strong growth trajectory compared to the previous year. Overall, CarbonKrishi and the collaboration with Luminary Crown position Auri Grow to expand its presence in sustainable and technology-driven agriculture, create new revenue streams, and integrate Indian farming into the global carbon credit and ESG ecosystem.
Year on Year analysis: Revenue from operations has decreased from Rs. 83.03 Crores to Rs. 8 Crores, down 90 percent. Operating profit has turned into loss of Rs. 0.03 crores from operating profit of Rs. 0.91 Crores and net profit has also turned into loss of 0.29 Crores from a net profit of Rs. 0.70 Crores
Quarter on Quarter analysis: revenue from operations has increased from Rs. 5.79 Crores to Rs. 8 Crores, up 38 percent. Operating profit has turned into loss of Rs. 0.03 crores from operating profit of Rs. 0.94 Crores and net profit has also turned into loss of 0.29 Crores from net profit of Rs. 0.69 Crores
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