Harshil Agrotech Limited

Consumer Defensive — Food Distribution · BSE

₹0.24+₹0.01 (+4.35%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. 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 Harshil Agrotech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Harshil Agrotech Limited engages in the trading of agriculture goods and commodity and agri materials in India. It provides contract farming, greenhouse technology, modern agro farming, and organic farming services.

IndustryFood Distribution

SectorConsumer Defensive

Employees6

Annual revenue₹64 Cr

How does it make money?

Turns over ₹64 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹10.59 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.59 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. 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?Little sign of one

Returns on capital of 9.6% 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.

Peer median ROE51.0%

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 +38639% while net margin moved -113% 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+38639%

Margin effect-113%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.0% is weak
✓ ROE has improved by 301.9 points over the period

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

54/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

-2.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -112.7% to 17.5% over 3 years.
Return on equity is rising
ROE has improved from -292.9% to 9.0%.
Return on capital is rising
ROCE has improved from -30.8% to 9.6%.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 7572% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -112.7% to 17.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 472% a year✓ 629.0% CAGR
Latest reported year was -71.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹44 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 4 neutral · 4 weak

Market Cap

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.05

Loss-making

Negative earnings per share — the business is losing money

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-71.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

1195.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-73.9%

Weak

Thin margins leave little room for error

Net Margin

-2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

35.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.2 / 0.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹0 Cr	₹4 Cr	₹13 Cr	₹64 Cr	+629.0%
EBITDA	-₹0 Cr	₹1 Cr	₹1 Cr	₹11 Cr	—
EBITDA Margin	-112.7%	16.0%	9.7%	17.5%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹1 Cr	₹10 Cr	—
EPS	₹-0.23	₹0.59	₹0.56	₹0.15	—
ROE	-292.9%	88.2%	7.0%	9.0%	—
ROCE	-30.8%	61.3%	8.9%	9.6%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	-1.2%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹8 Cr	-₹44 Cr	—

🟢 Revenue has grown at 629.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹11 Cr.

🟢 EBITDA Margin has risen from -112.7% to 17.5% over 3 years (+130.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹10 Cr.

🟢 EPS has turned positive, from ₹-0.23 to ₹0.15.

🟢 ROE has risen from -292.9% to 9.0% over 3 years (+301.9 pts).

🟢 ROCE has risen from -30.8% to 9.6% over 3 years (+40.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.2% a year).

Balance Sheet & Cash Flow — FY2025

Total Assets

₹119 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

-₹44 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

8.7%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive1 mixed4 general

Harshil Agrotech Limited Discloses NCLT Order for Corporate Insolvency Resolution Process

scanx.trade, 17 Apr

Harshil Agrotech Ltd Falls to 52-Week Low of Rs.0.4 Amidst Weak Financial Metrics

MarketsMojo, 26 Feb

Compare MIRCH MIREX with Raymond

Equitymaster, 11 Oct

Harshil Agrotech Share Price Surges 5% After Q1 FY26 Profit Jump

Samco, 14 AugResults

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

Harshil Agrotech Limited Submits SEBI Compliance Certificate for Q4 FY26

scanx.trade, 08 AprResults

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

Harshil Agrotech (BSE:505336) - Stock Analysis

Simply Wall Street, 22 Oct

Watch Items

Revenue growth is negative (-71.8%) 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

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

WeakProfitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

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