Bombay Super Hybrid Seeds Limited

Basic Materials — Agricultural Inputs · NSE

₹94.55−₹7.25 (−7.12%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bombay Super Hybrid Seeds Limited engages in the research, production, processing, and marketing of hybrid and GM seeds in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees60

Annual revenue₹344 Cr

How does it make money?

Turns over ₹344 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹5.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.73 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.5% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +51% while net margin moved +5% 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+51%

Margin effect+5%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

55/ 100

Fair

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

34.4x

3Y Median

64.8x

40 monthly readings · mean 79.3x · range 24.1x–167.3x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 47% below its 3y median of 64.8x. 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 20% above the peer median of 28.7x.

vs. its own history

Cheap

64.8x median over 40 months · -47%

vs. sector peers

Fair

28.7x median of 4 peers · +20%

vs. generic bands

Fair

15x–35x

EV/EBITDA

30.3x

PEG

2.06

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 25.9% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.8% to 20.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.7% to 25.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 105% over 3 years, from ₹53 Cr to ₹108 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 104% against revenue up 51% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.9% 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.
Priced below its own history
The stock trades 47% 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.
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?

Returns on shareholder capital are falling
ROE has dropped from 29.8% to 20.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 11% a year✓ 14.7% CAGR
Latest reported year was 220.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 3.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 23%✓ 25.9%
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

5 good · 3 neutral · 3 weak

Market Cap

₹992 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.4x

Fair

Fairly valued against the generic band

P/B Ratio

6.84x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.75

Profitable

Profitable on a per-share basis

ROE

21.5%

Strong

Strong capital efficiency

ROCE

25.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

220.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-8.3%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

12.9%

Good

Assets are working hard

Operating Margin

4.5%

Weak

Thin margins leave little room for error

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

8.36

Comfortable

Healthy short-term liquidity

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

86.7 / 88.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹228 Cr	₹257 Cr	₹359 Cr	₹344 Cr	+14.7%
EBITDA	₹22 Cr	₹29 Cr	₹35 Cr	₹36 Cr	+18.5%
EBITDA Margin	9.6%	11.3%	9.7%	10.5%	—
PAT (Net Profit)	₹17 Cr	₹22 Cr	₹26 Cr	₹27 Cr	+16.7%
EPS	₹1.6	₹2.1	₹2.52	₹2.54	+16.7%
ROE	29.8%	28.4%	25.2%	20.3%	—
ROCE	35.7%	34.7%	31.8%	25.9%	—
Total Debt	₹53 Cr	₹48 Cr	₹92 Cr	₹108 Cr	+27.0%
Free Cash Flow	-₹11 Cr	₹11 Cr	-₹34 Cr	-₹19 Cr	—

🟢 Revenue has grown at 14.7% a year over 3 years.

🟢 EBITDA has grown at 18.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.5% over 3 years.

🟢 PAT (Net Profit) has grown at 16.7% a year over 3 years.

🟢 EPS has grown at 16.7% a year over 3 years.

🔴 ROE has fallen from 29.8% to 20.3% over 3 years (-9.4 pts).

🔴 ROCE has fallen from 35.7% to 25.9% over 3 years (-9.8 pts).

🔴 Total Debt has grown at 27.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹254 Cr

Total Liabilities

₹123 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

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

2 mixed1 negative3 general

Bombay Super Hybrid Seeds Q2 EBITDA margin drops to 4.95% on cost pressure

scanx.trade, 18 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Bombay Super Hybrid Seeds Q2: सेल में तूफानी तेजी, पर मुनाफे पर ब्रेक, क्या है वजह?

Whalesbook, 15 OctResults

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

Bombay Super Hybrid Seeds (BSHSL) Share Price Rises 8.33% Today

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bombay Super Hybrid Seeds (BSHSL.NS) Jumps 6.66% to ₹83.58, Nears Resistance Zone - Triple MA Cross

siam.in, 09 Oct

Bombay Super Hybrid Seeds Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Compare with

Equitymaster, 17 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑