GSP Crop Science Limited

Basic Materials — Agricultural Inputs · NSE

₹469.00+₹0.90 (+0.19%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

GSP Crop Science Limited, together with its subsidiaries, engages in the manufacture and sale of agro chemicals in India and internationally. It offers insecticides, pesticides, and herbicides; and plant growth regulators and fungicides.

IndustryAgricultural Inputs

SectorBasic Materials

Annual revenue₹1,515 Cr

How does it make money?

Turns over ₹1,515 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

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 19.7% 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 +26% while net margin moved +263% 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+26%

Margin effect+263%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

74/ 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

18.4x

Sector Median

28.7x

median of 4 sector peers

🟢Against its sector it trades 36% below the peer median of 28.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

28.7x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.6x

PEG

0.28

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.7% to 13.0% over 3 years.
Debt is being paid down
Total debt is down 19% over 3 years.
Return on equity is rising
ROE has improved from 5.9% to 12.7%.
Return on capital is rising
ROCE has improved from 12.3% to 19.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹18 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.7% 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 6.7% to 13.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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 11%✓ 13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 8.1% CAGR
Latest reported year was 2.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹2,182 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.45x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.55

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

19.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

2.4%

Modest

Modest growth

Profit Growth (YoY)

-5.8%

Falling

Profits are shrinking

Dividend Yield

0.21%

Modest

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

Free Cash Flow

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.8%

Average

Average margins

Net Margin

6.6%

Average

Average bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

477.9 / 539.2

Bearish alignment (short < long)

RSI (14)

35.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,200 Cr	₹1,150 Cr	₹1,283 Cr	₹1,515 Cr	+8.1%
EBITDA	₹80 Cr	₹130 Cr	₹164 Cr	₹198 Cr	+35.3%
EBITDA Margin	6.7%	11.3%	12.8%	13.0%	—
PAT (Net Profit)	₹21 Cr	₹61 Cr	₹83 Cr	₹98 Cr	+66.0%
EPS	₹4.6	₹13.18	₹17.94	₹24.93	+75.7%
ROE	5.9%	16.6%	18.5%	12.7%	—
ROCE	12.3%	25.1%	25.7%	19.7%	—
Total Debt	₹324 Cr	₹237 Cr	₹297 Cr	₹262 Cr	-6.9%
Free Cash Flow	₹70 Cr	₹178 Cr	-₹35 Cr	-₹18 Cr	—

🟢 Revenue has grown at 8.1% a year over 3 years.

🟢 EBITDA has grown at 35.3% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 13.0% over 3 years (+6.4 pts).

🟢 PAT (Net Profit) has grown at 66.0% a year over 3 years.

🟢 EPS has grown at 75.7% a year over 3 years.

🟢 ROE has risen from 5.9% to 12.7% over 3 years (+6.8 pts).

🟢 ROCE has risen from 12.3% to 19.7% over 3 years (+7.5 pts).

🟢 Total Debt has shrunk at 6.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹70 Cr to -₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,547 Cr

Total Liabilities

₹776 Cr

Cash & Equivalents

₹155 Cr

Operating Cash Flow

₹59 Cr

Capex

-₹77 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.4%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

11 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

1 mixed5 general

GSP Crop Science (NSEI:GSPCROP) - Stock Analysis

Simply Wall Street, 18 Oct

GSP CROP SCIENCE LIMITED Share Price

Upstox, 16 Oct

GSP Crop’s IPO: Price Band At Rs304–Rs320

https://www.fintechbiznews.com/, 09 Oct

GSP Crop Science shares settle 11% higher on debut day

Moneycontrol.com, 24 MarPrice 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.

GSP Crop Science shares list at 4% premium; should you exit or hold?

Business Standard, 24 Mar

GSP Crop Science Share Price update with stock analysis

Univest, 25 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Valuation

WeakRisk

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 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑