Naturite Agro Products Limited

Consumer Defensive — Packaged Foods · BSE

₹69.20−₹3.64 (−5.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Naturite Agro Products Limited manufactures, supplies, and exports a range of spice oils, oleoresins, natural food colors, and herbal products in India. It offers capsicum, paprika, and turmeric oleoresins; pure capsaicin natural; and curcumin powders.

IndustryPackaged Foods

SectorConsumer Defensive

Employees20

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 20 employees supports ₹1.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA 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 3.7% 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 +361% while net margin moved -72% 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+361%

Margin effect-72%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

20/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

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

193.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -0.7% to 1.2% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from -1.1% to 3.7%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -0.7% to 1.2%. 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 20.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 50% a year✓ 66.4% CAGR
Latest reported year was -77.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 20.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹73 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

7.43x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.69

Loss-making

Negative earnings per share — the business is losing money

ROE

-7.6%

Weak

Weak capital efficiency

ROCE

3.7%

Weak

Low return on total capital employed

Debt/Equity

0.90x

Moderate

Moderate leverage

Revenue Growth (YoY)

-77.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

133.3%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

-2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.32

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

82.7 / 90.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

12.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹10 Cr	₹9 Cr	₹36 Cr	+66.4%
EBITDA	-₹0 Cr	₹0 Cr	-₹3 Cr	₹0 Cr	—
EBITDA Margin	-0.7%	5.2%	-37.6%	1.2%	—
PAT (Net Profit)	-₹1 Cr	₹0 Cr	-₹3 Cr	-₹1 Cr	—
EPS	₹-1.11	₹0.66	₹-4.81	₹-1.41	—
ROE	-4.6%	2.6%	-24.0%	-7.6%	—
ROCE	-1.1%	2.5%	-27.7%	3.7%	—
Total Debt	₹8 Cr	₹3 Cr	₹14 Cr	₹9 Cr	+2.0%
Free Cash Flow	-₹4 Cr	₹5 Cr	-₹11 Cr	₹5 Cr	—

🟢 Revenue has grown at 66.4% a year over 3 years.

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

🟢 EBITDA Margin has risen from -0.7% to 1.2% over 3 years (+1.9 pts).

🔴 ROE has fallen from -4.6% to -7.6% over 3 years (-3.0 pts).

🟢 ROCE has risen from -1.1% to 3.7% over 3 years (+4.8 pts).

🔴 Total Debt has grown at 2.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.3%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive5 general

Naturite Agro Products Share Price and Valuation Review

Univest, 29 Sept

Naturite Agro board approves rights issue up to ₹2600 lakh

scanx.trade, 12 Oct

Rising Oleoresin Prices and Monsoon Prospects Spark Turnaround Momentum for Naturite Agro Products Ltd (NAPL)

Business Standard, 16 Jul

Stock split alert: Record date soon - shares jump 121% in 2 yrs | Do you own?

Livemint, 21 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Naturite Agro Products Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Naturite Agro Products Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 29 Sept

Watch Items

Revenue growth is negative (-77.5%) 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.
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

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑