BN Agrochem Limited

Consumer Defensive — Packaged Foods · NSE

₹168.91−₹1.08 (−0.64%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

BN Agrochem Limited manufactures and trades agricultural commodities, oilseeds, edible oils, and related products.

IndustryPackaged Foods

SectorConsumer Defensive

Employees6

Annual revenue₹873 Cr

How does it make money?

Turns over ₹873 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹145.55 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin2.6%

Net margin3.9%

Revenue / employee₹145.55 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Little sign of one

Returns on capital of 4.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE4.2%

ROE7.4%

Peer median ROE51.0%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.4% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

28/ 100

Expensive

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

97.1x

Sector Median

51.7x

median of 4 sector peers

⚠️Against its sector it trades 88% above the peer median of 51.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

51.7x median of 4 peers · +88%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

97.1x

P/B

3.56x

EV/EBITDA

75.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

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 -20641.2% to 4.2%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Debt is rising
Total debt is up 8969% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 8969% over 3 years, from ₹1 Cr to ₹51 Cr.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 888% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹24 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?

A premium to the sector to defend
It trades 88% above the peer median. That premium needs a reason that persists, or it closes.
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 1%✓ 2.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹1,651 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

97.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.74

Profitable

Profitable on a per-share basis

ROE

7.4%

Weak

Weak capital efficiency

ROCE

4.2%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

26.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-85.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹168.91

Operating Margin

2.2%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

48.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

32.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹7 Cr	₹299 Cr	₹873 Cr	—
EBITDA	-₹0 Cr	-₹3 Cr	₹75 Cr	₹22 Cr	—
EBITDA Margin	—	-44.0%	25.1%	2.6%	—
PAT (Net Profit)	-₹0 Cr	-₹3 Cr	₹20 Cr	₹34 Cr	—
EPS	₹-0.37	₹-3.16	₹8.96	₹3.51	—
ROE	—	-4.4%	5.0%	7.4%	—
ROCE	-20641.2%	-4.3%	7.0%	4.2%	—
Total Debt	₹1 Cr	₹1 Cr	₹83 Cr	₹51 Cr	+349.3%
Free Cash Flow	-₹0 Cr	-₹3 Cr	-₹39 Cr	₹24 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹22 Cr.

🟢 EBITDA Margin has risen from -44.0% to 2.6% over 3 years (+46.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹34 Cr.

🟢 EPS has turned positive, from ₹-0.37 to ₹3.51.

🟢 ROE has risen from -4.4% to 7.4% over 3 years (+11.8 pts).

🟢 ROCE has risen from -20641.2% to 4.2% over 3 years (+20645.4 pts).

🔴 Total Debt has grown at 349.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹526 Cr

Total Liabilities

₹59 Cr

Total Debt

₹51 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹24 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

18.3%

Insider Holding

77.2%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

3 mixed3 general

BN Agrochem gets NCLT order for 90-day extension on merger meetings

scanx.trade, 03 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Board of BN Agrochem approves sub-division of equity shares

Business Standard, 29 Sept

BNAGROCHEM Stock Price and Chart — NSE:BNAGROCHEM

TradingView, 20 Apr

BN Agrochem's (NSE:BNAGROCHEM) Solid Earnings May Rest On Weak Foundations

Simply Wall Street, 06 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

BN Agrochem Ltd Locks at Lower Circuit With 5.0% Loss — Sellers Queue, No Buyers in Sight

MarketsMojo, 06 Oct

BN Holdings Share Price Fall Streak in focus today

Univest, 12 OctPrice 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.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong15.6/20

🟡GrowthModest10/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding5.7/15

🔴RiskHigh3.6/10

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 1%2.6%
✗Debt / EBITDA stays below 2x2.3x
✓Free cash flow remains positive₹24 Cr
✗ROCE stays above 8%4.2%