Indogulf Cropsciences Limited

Basic Materials — Agricultural Inputs · NSE

₹60.73+₹6.37 (+11.72%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indogulf Cropsciences Limited manufactures and sells crop protection products, plant nutrients, and biological products to retail and institutional customers in India and internationally.

IndustryAgricultural Inputs

SectorBasic Materials

Annual revenue₹703 Cr

How does it make money?

Turns over ₹703 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 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?Little sign of one

Returns on capital of 14.5% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +28% while net margin moved +39% 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+28%

Margin effect+39%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.7% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

81/ 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

11.7x

1.4Y Median

13.3x

17 monthly readings · mean 14.7x · range 8.5x–24.5x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 1.4y median of 13.3x. 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 59% below the peer median of 28.7x.

vs. its own history

Fair

13.3x median over 17 months · -12%

vs. sector peers

Cheap

28.7x median of 4 peers · -59%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 9.3% to 11.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 17.4% to 14.5% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹69 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 64% against revenue up 28% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.3% to 11.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 59% 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?

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 9%✓ 11.3%
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✗ -₹69 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 6% a year✓ 8.6% CAGR
Latest reported year was -11.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 12%✓ 14.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹384 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

0.67x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.18

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

14.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

-11.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-52.5%

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

-₹69 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.5%

Weak

Thin margins leave little room for error

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.94

Comfortable

Healthy short-term liquidity

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

58.7 / 66.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹549 Cr	₹551 Cr	₹589 Cr	₹703 Cr	+8.6%
EBITDA	₹51 Cr	₹62 Cr	₹68 Cr	₹80 Cr	+16.1%
EBITDA Margin	9.3%	11.3%	11.5%	11.3%	—
PAT (Net Profit)	₹22 Cr	₹28 Cr	₹31 Cr	₹40 Cr	+21.3%
EPS	₹3.55	₹4.47	₹4.98	₹6.72	+23.7%
ROE	11.0%	12.2%	11.4%	8.7%	—
ROCE	17.4%	18.5%	18.0%	14.5%	—
Total Debt	₹195 Cr	₹159 Cr	₹227 Cr	₹183 Cr	-2.1%
Free Cash Flow	-₹77 Cr	₹28 Cr	-₹57 Cr	-₹69 Cr	—

🟢 Revenue has grown at 8.6% a year over 3 years.

🟢 EBITDA has grown at 16.1% a year over 3 years.

🟢 EBITDA Margin has risen from 9.3% to 11.3% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 21.3% a year over 3 years.

🟢 EPS has grown at 23.7% a year over 3 years.

🔴 ROE has fallen from 11.0% to 8.7% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 17.4% to 14.5% over 3 years (-2.9 pts).

🟢 Total Debt has shrunk at 2.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹823 Cr

Total Liabilities

₹364 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹41 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

4.0%

Insider Holding

72.5%

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 mixed4 general

INDOGULF CROPSCIENCES Share Price News with sector analysis

Univest, 16 Oct

Are Indogulf Cropsciences Limited's (NSE:IGCL) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?

Simply Wall Street, 12 Jan

Indogulf Cropsciences releases Q1FY27 earnings call transcript

scanx.trade, 18 AugResults

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

Indogulf Cropsciences - Sunil Singhania’s Abakkus Portfolio: 6 stocks rally up to 75% in CY26; 5 new buys added in Q4

The Economic Times, 30 MayResults

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

INDOGULF CROPSCIENCES LTD Share Price - Live NSE: IGCL Stock Price & Chart

Upstox, 05 May

Indogulf Cropsciences vs Nifty 50: Returns Compared

Univest, 29 Sept

Watch Items

Revenue growth is negative (-11.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality

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. 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 ↑