Mukta Agriculture Limited

Consumer Defensive — Farm Products · BSE

₹6.35+₹0.29 (+4.79%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mukta Agriculture Limited engages in the trading of agricultural products and other related activities in India. It is also involved in lease farming business.

IndustryFarm Products

SectorConsumer Defensive

Employees5

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 1.2% 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%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 1.2% is below 10% — capital is not working hard
✓ ROCE has improved by 33.4 points over the period — returns are strengthening
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

63/ 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

25.4x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 41% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -41%

vs. generic bands

Fair

15x–35x

EV/EBITDA

51.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -33.9% to 1.2%.
Return on capital is rising
ROCE has improved from -32.3% to 1.2%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 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 -₹10 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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

1Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
2ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ 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 · 5 neutral · 3 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.25

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

1133.3%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-0.9%

Weak

Assets generate little profit

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

324.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

5.5 / 4.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹8 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-68.0%
PAT (Net Profit)	-₹8 Cr	-₹2 Cr	-₹0 Cr	₹0 Cr	—
EPS	₹-3.73	₹-0.89	₹-0.07	₹0.12	—
ROE	-33.9%	-8.7%	-0.7%	1.2%	—
ROCE	-32.3%	-8.2%	-0.8%	1.2%	—
Total Debt	₹1 Cr	₹1 Cr	—	—	—
Free Cash Flow	₹0 Cr	-₹0 Cr	₹1 Cr	-₹10 Cr	—

🔴 EBITDA has shrunk at 68.0% a year over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹8 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-3.73 to ₹0.12.

🟢 ROE has risen from -33.9% to 1.2% over 3 years (+35.1 pts).

🟢 ROCE has risen from -32.3% to 1.2% over 3 years (+33.4 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹10 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

42.8%

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

2 mixed4 general

Compare with

Equitymaster, 15 Oct

Mukta Agriculture Returns to Profit in FY26

scanx.trade, 15 May

Mukta Agriculture Limited Reports Earnings Results for the Second Quarter and Six Months Ended September 30, 2026

www.marketscreener.com, 13 OctResults

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

Mukta Agriculture Ltd. Share Price Surges 8.7% Today

Univest, 27 JulPrice 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.

Mukta Agriculture Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Mukta Agriculture Ltd. (BSE:MUKTA): A Simple Guide to Its Business and Sector Position

Kalkine India, 14 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Profitability · Valuation

WeakBusiness Quality · 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 2 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑