Bharat Rasayan Limited

Basic Materials — Agricultural Inputs · NSE

₹1,000.00+₹14.70 (+1.49%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Bharat Rasayan Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bharat Rasayan Limited engages in the manufacture and sale of technical grade pesticides and chemical intermediates in India. It offers insecticides, herbicides, fungicides, and intermediates.

IndustryAgricultural Inputs

SectorBasic Materials

Employees903

Annual revenue₹1,222 Cr

How does it make money?

Turns over ₹1,222 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 903 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin18.4%

Net margin11.9%

Revenue / employee₹1.35 Cr

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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Some evidence

ROCE of 15.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.3%

ROE11.4%

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 -1% while net margin moved +18% 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-1%

Margin effect+18%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.3% a year
✗ Profit CAGR of only 5.4%
✗ Latest-year revenue growth of -10.4% is below the longer-term trend — momentum is fading
✗ Profit fell 6.1% in the latest year

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

85/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

6.4x

3Y Median

30.6x

40 monthly readings · mean 31.4x · range 11.4x–55.9x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 3y median of 30.6x. 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 78% below the peer median of 28.7x.

vs. its own history

Cheap

30.6x median over 40 months · -79%

vs. sector peers

Cheap

28.7x median of 4 peers · -78%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.4x

P/B

1.30x

EV/EBITDA

7.3x

PEG

1.20

Dividend Yield

0.05%

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 96% over 3 years.
Valuation below its historical average
At 6.4x the stock trades 79% below its own median of 30.6x.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 19.9% to 15.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 96% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 79% 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 78% 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 ₹59 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

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 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹59 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 15.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 30.6x✓ 6.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

6 good · 3 neutral · 2 weak

Market Cap

₹1,662 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.4x

Cheap

Cheap against the generic band

P/B Ratio

1.30x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹155.07

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

-10.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-6.1%

Falling

Profits are shrinking

Dividend Yield

0.05%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹59 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,000

P/E (Forward)

3.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.9%

Average

Average margins

Net Margin

11.9%

Good

Strong bottom-line conversion

Current Ratio

7.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1031.7 / 1165.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,234 Cr	₹1,033 Cr	₹1,162 Cr	₹1,222 Cr	-0.3%
EBITDA	₹209 Cr	₹146 Cr	₹204 Cr	₹225 Cr	+2.5%
EBITDA Margin	17.0%	14.2%	17.6%	18.4%	—
PAT (Net Profit)	₹125 Cr	₹96 Cr	₹141 Cr	₹146 Cr	+5.4%
EPS	₹74.97	₹57.47	₹84.79	₹87.68	+5.4%
ROE	13.9%	9.7%	12.5%	11.4%	—
ROCE	19.9%	12.6%	16.5%	15.3%	—
Total Debt	₹28 Cr	₹80 Cr	₹85 Cr	₹1 Cr	-64.7%
Free Cash Flow	₹190 Cr	₹14 Cr	₹136 Cr	₹59 Cr	-32.4%

🟡 Revenue has been broadly flat over 3 years (-0.3% a year).

🟢 EBITDA has grown at 2.5% a year over 3 years.

🟢 EBITDA Margin has risen from 17.0% to 18.4% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 5.4% a year over 3 years.

🟢 EPS has grown at 5.4% a year over 3 years.

🔴 ROE has fallen from 13.9% to 11.4% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 19.9% to 15.3% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 64.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 32.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,433 Cr

Total Liabilities

₹158 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

₹132 Cr

Capex

-₹74 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

17 Sept 2026

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

5 positive1 mixed

Bharat Rasayan Limited (NSE:BHARATRAS) Is About To Go Ex-Dividend, And It Pays A 0.1% Yield

Simply Wall Street, 13 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Is Bharat Rasayan Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 07 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Bharat Rasayan Q4 Net Profit jumps 37% to ₹39.1 Cr amid stagnant revenue growth

Sahi, 26 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Dividend record date alert: Last chance to buy Asian Energy, Bharat Rasayan, IRCON, MSTC, and others | Full list

Livemint, 16 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bharat Rasayan’s 1:1 bonus issue, 1:2 stock split record date approaches. What it means for shareholders

The Economic Times, 11 DecCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bharat Rasayan FY26 net profit rises 14.3% to ₹1,429.3 crore

scanx.trade, 26 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-10.4%) 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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong17.6/20

🔴GrowthWeak5.7/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate6.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 16%18.4%
✓Free cash flow remains positive₹59 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 12%15.3%
✓Valuation vs its own median of 30.6x6.4x today