Nagarjuna Agri-Tech Limited

Consumer Defensive — Farm Products · BSE

₹40.40+₹3.60 (+9.78%)

DalalBaazaar Score

54 / 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, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Nagarjuna Agri-Tech Limited engages in plantation, cultivation, and distribution of roses in India. It also exports to Europe and the Middle East, such as the Kingdom of Saudi Arabia, Qatar, and the United Arab Emirates.

IndustryFarm Products

SectorConsumer Defensive

Annual revenue₹53 Cr

How does it make money?

Turns over ₹53 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin6.0%

Net margin2.3%

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.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of 1.4% 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.

ROCE1.4%

ROE0.8%

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 +1888% while net margin moved -136% 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+1888%

Margin effect-136%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.82 — historically steadier than the index
✗ 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

58/ 100

Average

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

Valuation

38/ 100

Expensive

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

42.1x

2Y Median

33.7x

28 monthly readings · mean 52.6x · range 8.2x–120.3x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 25% above its 2y median of 33.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 43.3x.

vs. its own history

Expensive

33.7x median over 28 months · +25%

vs. sector peers

Fair

43.3x median of 4 peers · -3%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

42.1x

P/B

0.32x

EV/EBITDA

67.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -0.1% to 6.0% over 3 years.
Return on equity is rising
ROE has improved from -5.9% to 0.8%.
Return on capital is rising
ROCE has improved from -5.2% to 1.4%.

🔴 What Needs Attention5

Debt is rising
Total debt is up 19837% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 67040% against revenue growth of 1888% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 207512% against revenue growth of 1888% — stock may not be moving.
Valuation above its historical average
At 42.1x the stock trades 25% above its own median of 33.7x.

Red Flags

8 items require attention · 5 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 19837% over 3 years, from ₹0 Cr to ₹90 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 67040% against revenue up 1888% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 207512% against revenue up 1888% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 16.8x to 2.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹146 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 227% 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 -0.1% to 6.0%. 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?

The debt load needs earnings to hold up
Debt is 28.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 67040% against revenue up 1888%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 25% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1Revenue growth stays above 128% a year✓ 170.9% CAGR
Latest reported year was 2001.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 28.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹146 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.

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

5 good · 2 neutral · 4 weak

Market Cap

₹124 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.96

Profitable

Profitable on a per-share basis

ROE

0.8%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

2001.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

159.4%

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

-₹146 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹40.4

Operating Margin

5.4%

Average

Average margins

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.82

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

35.9 / 39.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹2 Cr	₹0 Cr	₹53 Cr	+170.9%
EBITDA	-₹0 Cr	-₹5 Cr	-₹0 Cr	₹3 Cr	—
EBITDA Margin	-0.1%	-213.0%	-247.5%	6.0%	—
PAT (Net Profit)	-₹0 Cr	₹4 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-0.18	₹3.82	₹0.49	₹1.2	—
ROE	-5.9%	53.8%	6.9%	0.8%	—
ROCE	-5.2%	-10.8%	8.6%	1.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹90 Cr	+484.2%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹7 Cr	-₹146 Cr	—

🟢 Revenue has grown at 170.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹3 Cr.

🟢 EBITDA Margin has risen from -0.1% to 6.0% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.18 to ₹1.2.

🟢 ROE has risen from -5.9% to 0.8% over 3 years (+6.6 pts).

🟢 ROCE has risen from -5.2% to 1.4% over 3 years (+6.6 pts).

🔴 Total Debt has grown at 484.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹146 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹303 Cr

Total Liabilities

₹150 Cr

Total Debt

₹90 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹24 Cr

Capex

-₹122 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.0%

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

Nagarjuna Agri Tech Share Price News and Fundamental View

Univest, 12 Oct

Nagarjuna Agri Tech Company Secretary resigns effective Sep 30, 2026

scanx.trade, 30 Sept

Nagarjuna Agri Tech Share Price near 52-week low: analysis

Univest, 01 Oct

Nagarjuna Agri Tech standalone net profit rises 2940.00% in the March 2026 quarter

Business Standard, 02 JunResults

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

Nagarjuna Agri-Tech Completes Rs. 144.74 Crore Acquisition of Allenby Food & Beverages

scanx.trade, 20 MarM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Nagarjuna Agri Tech Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 25 Sept

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟡Financial HealthAdequate9.2/20

🟢GrowthStrong18.4/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 128% a year170.9% CAGR
✓EBITDA margin holds above 4%6.0%
✗Debt / EBITDA falls below 3x28.6x
✗Free cash flow remains positive-₹146 Cr
✗Interest cover stays above 3x2.0x