The company formed a joint venture with Greenlife Ventures and GoLocalProduceRI in Rhode Island to build new facilities. The 20,000 square-foot facilities will use patented technology and LED lighting to achieve high yields. The current focus of the facilities is to grow organic produce to sell to local customers.
IGC owns 51% of the venture, and says it could produce $2 million to $2.5 million in annual revenue.
"By positioning our selves in major markets with cutting edge, pesticide free organic growing technology coupled with large scalable operating facilities that can be transformed to grow legal cannabis as soon as there is clarity on the evolving legal framework, IGC will be ready to emerge as a significant player in this high potential and currently fragmented market," IGC CEO Ram Mukunda said in a press release.
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TheStreet Ratings team rates INDIA GLOBALIZATION CAPITAL as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INDIA GLOBALIZATION CAPITAL (IGC) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has significantly decreased by 199.7% when compared to the same quarter one year ago, falling from $0.31 million to -$0.31 million.
- Net operating cash flow has significantly decreased to -$0.45 million or 130.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The share price of INDIA GLOBALIZATION CAPITAL has not done very well: it is down 11.27% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- INDIA GLOBALIZATION CAPITAL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INDIA GLOBALIZATION CAPITAL continued to lose money by earning -$0.20 versus -$3.10 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings (-$0.22 versus -$0.20).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Construction & Engineering industry and the overall market, INDIA GLOBALIZATION CAPITAL's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: IGC Ratings Report