Agro Phos (India) Limited

Basic Materials — Agricultural Inputs · NSE

₹22.93+₹0.14 (+0.61%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Agro Phos (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Agro Phos (India) Limited engages in the manufacture and sale of fertilizers in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees156

Annual revenue₹78 Cr

How does it make money?

Turns over ₹78 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 156 employees supports ₹50.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹50.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +9% while net margin moved +50% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+9%

Margin effect+50%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 10.4% is moderate

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

5.7x

4Y Median

14.1x

52 monthly readings · mean 14.4x · range 8.9x–19.4x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 4y median of 14.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 80% below the peer median of 28.7x.

vs. its own history

Cheap

14.1x median over 52 months · -60%

vs. sector peers

Cheap

28.7x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.8x

PEG

0.32

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 15.1% to 21.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 15.6% to 20.8%.
High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 61% against revenue up 9% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 15.1% to 21.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 60% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 61% against revenue up 9%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 2.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Revenue growth stays above 4% a year✗ 2.8% CAGR
Latest reported year was -22.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.7x

Cheap

Cheap against the generic band

P/B Ratio

0.66x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.04

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

-22.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

55.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.36%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

6.0%

Average

Average asset productivity

Operating Margin

6.0%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

1.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

23.2 / 24.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.1

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	—	₹72 Cr	₹66 Cr	₹72 Cr	₹78 Cr	+2.8%	+2.8%
EBITDA	—	₹11 Cr	-₹5 Cr	₹15 Cr	₹17 Cr	+15.9%	+15.9%
EBITDA Margin	—	15.1%	-8.3%	20.5%	21.6%	—	—
PAT (Net Profit)	—	₹5 Cr	-₹8 Cr	₹5 Cr	₹8 Cr	+17.8%	+17.8%
EPS	₹2.88	₹2.47	₹-3.79	₹2.59	—	—	—
ROE	—	9.6%	-12.8%	—	11.6%	—	—
ROCE	—	15.6%	-12.0%	—	20.8%	—	—
Total Debt	₹13 Cr	₹27 Cr	₹29 Cr	—	₹34 Cr	+8.2%	+28.0%
Free Cash Flow	₹6 Cr	-₹11 Cr	₹1 Cr	—	₹3 Cr	—	-11.0%

🟢 Revenue has grown at 2.8% a year over 3 years.

🟢 EBITDA has grown at 15.9% a year over 3 years.

🟢 EBITDA Margin has risen from 15.1% to 21.6% over 3 years (+6.5 pts).

🟢 PAT (Net Profit) has grown at 17.8% a year over 3 years.

🟢 ROE has risen from 9.6% to 11.6% over 3 years (+2.0 pts).

🟢 ROCE has risen from 15.6% to 20.8% over 3 years (+5.2 pts).

🔴 Total Debt has grown at 28.0% a year over 4 years.

🔴 Free Cash Flow has shrunk at 11.0% a year over 4 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹154 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

23 Sept 2025

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

Agro Phos India Share Price: Buy or Sell

Univest, 04 Sept

Agro Phos India Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Agro Phos India (NSE: AGROPHOS): 5 Signals to Track

Kalkine India, 10 Sept

Agro Phos India vs Nifty 50: Share Price Performance Compared

Univest, 07 Sept

AGROPHOS Stock Price and Chart — NSE:AGROPHOS

TradingView, 10 Jul

Agro Phos India: Best Stock in Its Sector? Key Metrics

Univest, 18 Sept

Watch Items

Revenue growth is negative (-22.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth

WeakProfitability · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year · see Key things to watch ↑