Sharda Cropchem has good business model: Kunj Bansal

In a chat with ET Now, Kunj Bansal, ED & CIO, Centrum Wealth Management, shares his views on IPOs.

ET Now: Two smaller IPOs, Sharda and Snowman, any interest that you have in the business models that the company run?

Kunj Bansal: Sharda Cropchem is a good business model. In fact the comparative companies in that space if we look at, they have done exceedingly well in terms of company performances as well as share price returns.

So you have competitors like PI Industries, Insecticide India, Dhanuka Agri, this company is also largely into similar spaces with some difference. It largely sources its products from China whereas the others are more into manufacturing but clearly, that business has been doing well.

Now in this quarter monsoon having picked up, although the timing of the unseasonal rains could be an issue in terms of food grain production that we come to know later but monsoon having picked up, there is again a positive factor for all these companies. Snowman also into a niche business of cold storages. The only thing is that it is one business model wherein you need to continue to invest money to keep growing.