Narmada Agrobase Limited

Basic Materials — Agricultural Inputs · NSE

₹11.40−₹0.04 (−0.35%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:07 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 Narmada Agrobase Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Narmada Agrobase Limited manufactures and sells cotton seeds and cattle feeds in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees12

Annual revenue₹78 Cr

How does it make money?

Turns over ₹78 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹6.53 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.9%

Net margin4.9%

Revenue / employee₹6.53 Cr

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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 9.9% 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.

ROCE9.9%

ROE6.5%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +57% while net margin moved +277% 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+57%

Margin effect+277%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 6.5% is weak

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

62/ 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

24.3x

3Y Median

27.1x

40 monthly readings · mean 30.2x · range 13.6x–67.6x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 27.1x. 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 16% below the peer median of 28.7x.

vs. its own history

Fair

27.1x median over 40 months · -11%

vs. sector peers

Fair

28.7x median of 4 peers · -16%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

24.3x

P/B

1.46x

EV/EBITDA

15.5x

PEG

0.30

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.1% to 7.9% over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 167% against revenue growth of 57% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 167% against revenue up 57% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 111% 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 4.1% to 7.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 167% against revenue up 57%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 12% a year✓ 16.2% CAGR
Latest reported year was 100.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 9.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 4 neutral · 3 weak

Market Cap

₹86 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.47

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

9.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

100.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-25.9%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹11.4

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

5.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

12.3 / 13.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹50 Cr	₹66 Cr	₹78 Cr	+16.2%
EBITDA	₹2 Cr	₹3 Cr	₹6 Cr	₹6 Cr	+44.8%
EBITDA Margin	4.1%	5.1%	9.5%	7.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹4 Cr	₹4 Cr	+80.8%
EPS	₹0.18	₹0.32	₹0.78	₹0.51	+41.3%
ROE	4.1%	6.0%	7.3%	6.5%	—
ROCE	10.4%	13.5%	10.5%	9.9%	—
Total Debt	₹10 Cr	₹10 Cr	₹9 Cr	₹10 Cr	+0.1%
Free Cash Flow	₹0 Cr	₹1 Cr	-₹16 Cr	-₹1 Cr	—

🟢 Revenue has grown at 16.2% a year over 3 years.

🟢 EBITDA has grown at 44.8% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 7.9% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 80.8% a year over 3 years.

🟢 EPS has grown at 41.3% a year over 3 years.

🟢 ROE has risen from 4.1% to 6.5% over 3 years (+2.4 pts).

🟡 ROCE has held roughly flat at 9.9% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (0.1% a year).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹72 Cr

Total Liabilities

₹13 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.5%

Corporate Actions

Ex-Dividend Date

18 Sept 2019

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

1 mixed5 general

Narmada Agrobase sets July 31 record date for share sub-division

scanx.trade, 18 Jul

Narmada Agrobase Share Price Forecast: 3 Year Outlook to 2030

Univest, 22 Jul

Narmada Agrobase Ltd leads losers in 'B' group

Business Standard, 11 Jun

Narmada Agrobase Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 10 Sept

Narmada Agrobase Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Compare NARMADA AGRO with

Equitymaster, 27 Sept

Watch Items

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

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive10.6/15

🔴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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 12% a year16.2% CAGR
✓EBITDA margin holds above 6%7.9%
✗Free cash flow remains positive-₹1 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 8%9.9%