Indo Us Bio-Tech Limited

Basic Materials — Agricultural Inputs · NSE

₹71.99+₹0.35 (+0.49%)

DalalBaazaar Score

67 / 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indo Us Bio-Tech Limited engages in the production, processing, packing, and marketing of seeds in India.

IndustryAgricultural Inputs

SectorBasic Materials

Annual revenue₹110 Cr

How does it make money?

Turns over ₹110 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹15 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 17.2% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +79% while net margin moved +1% 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+79%

Margin effect+1%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.27 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.6x

2Y Median

16.7x

27 monthly readings · mean 29.3x · range 10.1x–76.6x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 2y median of 16.7x. 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 56% below the peer median of 28.7x.

vs. its own history

Cheap

16.7x median over 27 months · -24%

vs. sector peers

Cheap

28.7x median of 4 peers · -56%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.3x

PEG

0.58

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 14.9% to 17.2%.
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

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 219% over 3 years, from ₹12 Cr to ₹37 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 271% against revenue up 79% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹15 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 24% 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.
Cheaper than its peers
It trades 56% 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.
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 16% a year✓ 21.4% CAGR
Latest reported year was 7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.2%
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

4 good · 5 neutral · 2 weak

Market Cap

₹144 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.6x

Cheap

Cheap against the generic band

P/B Ratio

1.57x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.7

Profitable

Profitable on a per-share basis

ROE

14.2%

Moderate

Moderate capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

7.2%

Modest

Modest growth

Profit Growth (YoY)

-35.7%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

10.2%

Good

Strong bottom-line conversion

Current Ratio

3.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

75.6 / 78.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹62 Cr	₹73 Cr	₹104 Cr	₹110 Cr	+21.4%
EBITDA	₹9 Cr	₹11 Cr	₹19 Cr	₹17 Cr	+22.2%
EBITDA Margin	15.1%	15.2%	18.4%	15.4%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹16 Cr	₹13 Cr	+21.9%
EPS	₹3.76	₹4.11	₹8.11	₹6.54	+20.3%
ROE	13.3%	13.1%	20.7%	14.2%	—
ROCE	14.9%	15.6%	22.0%	17.2%	—
Total Debt	₹12 Cr	₹14 Cr	₹15 Cr	₹37 Cr	+47.3%
Free Cash Flow	-₹1 Cr	-₹0 Cr	₹1 Cr	-₹15 Cr	—

🟢 Revenue has grown at 21.4% a year over 3 years.

🟢 EBITDA has grown at 22.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.4% over 3 years.

🟢 PAT (Net Profit) has grown at 21.9% a year over 3 years.

🟢 EPS has grown at 20.3% a year over 3 years.

🟡 ROE has held roughly flat at 14.2% over 3 years.

🟢 ROCE has risen from 14.9% to 17.2% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 47.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹133 Cr

Total Liabilities

₹41 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.5%

Corporate Actions

Ex-Dividend Date

03 Dec 2024

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

Indo Us Bio Tech (NSE:INDOUS): What Does Its Q2 FY27 Reg 74(5) Certificate Confirm?

Kalkine India, 14 OctResults

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

Why Is Indo Us Biotech Share Price Falling Key Reasons 2026

Univest, 06 JulPrice 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.

Indo US Bio-Tech passes all five AGM resolutions including auditor appointment

scanx.trade, 02 Oct

Markets Rally, But Indo US Bio-Tech Ltd Sinks to 52-Week Low in Stock-Specific Sell-Off

MarketsMojo, 09 Oct

Indo US Bio-Tech Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Indo US Bio-Tech standalone net profit declines 35.32% in the June 2026 quarter

Business Standard, 12 AugResults

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

Watch Items

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · 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. 2 high-severity red flags sit 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 ↑