Buy Date: 2nd July 2026 | Accumulation
Valuation:
5th July 2026 | Share Price $0.017
As promised, I have put together some valuation figures on BGT. I have based the valuation on similar companies that are listed on the ASX. In the tables 1 and 2 below you will find a little brief about each company and their gross profit, NPAT margins and their PE ratios.
Table 1.
| Company | ASX | Market Segment | Gross Margin | NPAT Margin |
| Advance ZincTek (formerly Advance NanoTek) | ANO | Specialty nanoparticles, personal-care chemicals | 58.8% (FY25) | 10.6% (NPAT A$1.24m on revenue A$11.64m) |
| DGL Group | DGL | Chemical manufacturing, crop protection, logistics | 42.3% (gross profit A$203.9m on revenue A$481.5m) | 0.7% underlying NPAT margin (A$3.5m on A$481.5m revenue) |
| SciDev | SDV | Water treatment & specialty chemicals | 28.0% (FY25) | ~2.0% in FY24 (latest profitable year cited); FY25 reported a small net loss. |
| Nufarm | NUF | Global crop protection chemicals | 29.5% (FY23, strong-cycle year) | 3.5% (FY23 NPAT margin) |
| Incitec Pivot / Dyno Nobel | IPL | Fertilisers, explosives, industrial chemicals | 40.6% (FY24) | 7.5% underlying NPAT margin (underlying NPAT A$400.8m on revenue A$5.36bn) |
Table 2.
| Company | Gross Margin | NPAT | P/E |
| Advance ZincTek | 58.8% | 10.6% | 62.5x |
| Incitec Pivot / Dyno Nobel | 40.6% | 7.5% | 15x |
| Nufarm | 29.5% | 3.5% | 14.5x |
| DGL | 42.3% | 3.4% FY24 | 10–13x |
| SciDev | 28.0% | ~2% | 48x |
Using the information in tables 1 and 2 I have done some scenario analysis on BGT in tables 3 to 6 and used a range of different revenue figures, gross profit and NPAT margins and PE ratios to see what BGT’s share price would look like using different scenarios. I was surprised at the low NPAT margin these companies have and BGT will have to generate substantial revenues above $1b to become a larger profitable company, or if they can produce a higher NPAT margin it could be a significant catalyst for a higher share price.
They have noted in their investor presentations that the total addressable market for their products is US$44b. If they can capture 3-5% of this, they are well on their way to becoming a much larger company. Also, I have used a fully diluted shares figure of 500m for the share valuation except for Table 6 where I increased this figure to 1bn with revenues of $2bn to show how the increase in shares will dilute the share price.
Shares on issue will increase above 500m. As BGT keep raising capital to fund the commercialisation of their products. This will keep diluting the share price and makes a more accurate valuation difficult.
Table 3.
| Revenue $m | 50 | 50 | 50 |
| Gorss Profit Margin % | 25% | 30% | 35% |
| Profit Marging % | 2% | 5% | 8% |
| Gross Profit $m | 12.5 | 15 | 17.5 |
| NPAT $m | 1 | 2.5 | 4 |
| EPS | $0.002 | $0.005 | $0.008 |
| PE | 20 | 20 | 20 |
| PE | 15 | 15 | 15 |
| PE | 10 | 10 | 10 |
| Share Price (PE 20) | $0.04 | $0.10 | $0.16 |
| Share Price (PE 15) | $0.03 | $0.08 | $0.12 |
| Share Price (PE 10) | $0.02 | $0.05 | $0.08 |
| Average Share Price | $0.08 |
Table 4.
| Revenue $m | 250 | 250 | 250 |
| Gorss Profit Margin % | 25% | 30% | 35% |
| Profit Marging % | 2% | 5% | 8% |
| Gross Profit $m | 62.5 | 75 | 87.5 |
| NPAT $m | 5 | 12.5 | 20 |
| EPS | $0.01 | $0.025 | $0.04 |
| PE | 20 | 20 | 20 |
| PE | 15 | 15 | 15 |
| PE | 10 | 10 | 10 |
| Share Price (PE 20) | $0.20 | $0.50 | $0.81 |
| Share Price (PE 15) | $0.15 | $0.38 | $0.60 |
| Share Price (PE 10) | $0.10 | $0.25 | $0.40 |
| Average Share Price | $0.38 |
Table 5.
| Revenue $m | 500 | 500 | 500 |
| Gorss Profit Margin % | 25% | 30% | 35% |
| Profit Marging % | 2% | 5% | 8% |
| Gross Profit $m | 125 | 150 | 175 |
| NPAT $m | 10 | 25 | 40 |
| EPS | $0.02 | $0.050 | $0.08 |
| PE | 20 | 20 | 20 |
| PE | 15 | 15 | 15 |
| PE | 10 | 10 | 10 |
| Share Price (PE 20) | $0.40 | $1.01 | $1.61 |
| Share Price (PE 15) | $0.30 | $0.76 | $1.21 |
| Share Price (PE 10) | $0.20 | $0.50 | $0.81 |
| Average Share Price | $0.76 |
Table 6.
| Revenue $m | 2000 | 2000 | 2000 |
| Gorss Profit Margin % | 25% | 30% | 35% |
| Profit Margin % | 2% | 5% | 8% |
| Gross Profit $m | 500 | 600 | 700 |
| NPAT $m | 40 | 100 | 160 |
| EPS | $0.04 | $0.099 | $0.16 |
| PE | 20 | 20 | 20 |
| PE | 15 | 15 | 15 |
| PE | 10 | 10 | 10 |
| Share Price (PE 20) | $0.79 | $1.98 | $3.17 |
| Share Price (PE 15) | $0.59 | $1.48 | $2.37 |
| Share Price (PE 10) | $0.40 | $0.99 | $1.58 |
| Average Share Price | $1.48 |
Conclusion
Based on the above scenarios, I would say if BGT’s share price gets to $1.50 or above the market is pricing in significate growth which will take many years to achieve, if at all, and anything round 10-15c is undervaluing BGT and at 1.7c now I am happy to keep accumulating shares and building my position.
In summary, BGT has clear upside potential if it can successfully commercialise its products and capture even a small share of the large addressable market it is targeting. However, investors need to remain realistic about the timeline and the risks. BGT is still years away from generating meaningful cash flows and profits, and the path to commercialisation will almost certainly require more capital raises along the way. These raises will increase the number of shares on issue and dilute existing shareholders, which means any valuation should be treated as indicative only and adjusted as the company progresses toward real revenue, sustainable margins and profitability.
Stock Note:
2nd July 2026 | Share Price $0.017
I am back on the BGT share register as of today (2nd July 2026). This is my first share purchase after liquidating my shares to help fund the purchase of my house, and now I am starting to rebuild my share holdings.
| Company Name | Ticker Code | Purchase Price | % +/- |
|---|---|---|---|
| Bio-Gene Technology | BGT | $0.017 | -10.53 |
BGT are at the speculative end of the share investment scale and are a micro cap stock. They are in the process of commercializing two novel types of pesticide/miticide. They have just finished a share placement and share purchase plan where they raised circa $2.4m to help further advance their products. BGT are expecting first material cash flows in 2030 but as the process builds from here intermittent cash flows will start.
I see significant up side in their share price once first cash flows and profits start but that is some time away for now. I will look at my numbers again and update them to reflect their current position and provide and update soon.
Stock Note:
2nd October 2025
Liquidate all my shares to help fund house purchase. Sold BGT at $0.034.
Stock Note:
14th March 2024 | Share Price $0.06
BGT’s share price has bounced off its low for the year of 3.8c to 6.7c. Purchased BGT at 9c in August 2023. They have since raised capital to help fund the development and commercialisation of their products. Which is the bulk of the reason their share price retreated from 9c, to where it is today. At this stage of the commercialisation cycle most companies are capital hungry and it is better to raise capital when your share price is higher than lower. As such I would be expecting BGT to raise capital again this year on the back of their improving share price.
Bio-Gene Technology Limited (ASX:BGT) is an Australia-based agriculture technology development company. The Company’s principal activity is to develop and commercialize insecticides/pesticides.
Its platform technology is based on a naturally occurring class of chemicals known as beta-triketones, that seeks to address the global problems of insecticide resistance and toxicity. The Company’s lead beta-triketone insecticide products include Flavocide and Qcide.
BGT is currently focused on the Crop Protection, Grain Storage, Public Health, Consumer Applications and Animal Health markets and according to BGT they have an addressable market of US$31.1bn, with the majority of this market based in the USA.
BGT’s main sticking point is their novel mode of action (MOA), meaning their products attack pests and insects in a new way to existing products on the market; and by using their products exclusively or with other available products on the market. Pests/insects that have otherwise become resistant to other MOA’s will now be susceptible to BGT’s novel MOA.
BGT have raised capital via equity in FY23 and are advancing towards commercialising their products via agreements to help with the registration, licencing, and manufacturing their products on a commercial scale. BGT are expecting first meaningful revenues/cash flow in FY27 via royalties through licencing of their products and proceeds for product sales.
My strategy is to keep accumulate BGT shares on the back of milestone announcements until they reach commercialisation and start to generate revenue and cash flow.
Disclaimer: Rational Share Investing With Ratios does not hold an AFSL and information on this site should not be considered financial advice, personal or general, and represents the views of the author.
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