Nath Bio-Genes (India) Limited

Basic Materials — Agricultural Inputs · NSE

₹140.99+₹3.30 (+2.40%)

DalalBaazaar Score

56 / 100

🟡 Moderate

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, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Nath Bio-Genes (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nath Bio-Genes (India) Limited engages in the production, processing, and marketing of hybrid and GM seeds in India and internationally. It operates in two segments, Agricultural Activities and Trading Activities.

IndustryAgricultural Inputs

SectorBasic Materials

Employees452

Annual revenue₹445 Cr

How does it make money?

Turns over ₹445 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 452 employees supports ₹98.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.5 lakh

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?Little sign of one

Returns on capital of 8.8% 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 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 +48% while net margin moved -19% 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+48%

Margin effect-19%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.1% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

78/ 100

Cheap

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

7.7x

3Y Median

8.9x

40 monthly readings · mean 9.0x · range 6.3x–13.0x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 15% below its 3y median of 8.9x. 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 73% below the peer median of 28.7x.

vs. its own history

Fair

8.9x median over 40 months · -15%

vs. sector peers

Cheap

28.7x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.6x

PEG

1.29

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
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

5 items require attention · 2 high · 3 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.
🔴Inventory building faster than salesFinancial
Inventory up 117% against revenue up 48% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 32% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹16 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 73% 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?

Margins are being competed away
EBITDA margin has fallen from 17.2% to 13.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 10% a year✓ 13.9% CAGR
Latest reported year was 15.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹16 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 8.8%
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

5 good · 3 neutral · 3 weak

Market Cap

₹268 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.7x

Cheap

Cheap against the generic band

P/B Ratio

0.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹18.43

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

15.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.3%

Falling

Profits are shrinking

Dividend Yield

1.42%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.4%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

141.6 / 148.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹301 Cr	₹333 Cr	₹365 Cr	₹445 Cr	+13.9%
EBITDA	₹52 Cr	₹53 Cr	₹55 Cr	₹60 Cr	+4.8%
EBITDA Margin	17.2%	16.0%	15.1%	13.4%	—
PAT (Net Profit)	₹35 Cr	₹40 Cr	₹39 Cr	₹42 Cr	+5.9%
EPS	₹18.43	₹20.85	₹20.31	₹21.91	+5.9%
ROE	6.1%	6.5%	6.0%	6.1%	—
ROCE	7.9%	8.1%	7.6%	8.8%	—
Total Debt	₹105 Cr	₹110 Cr	₹123 Cr	₹139 Cr	+9.6%
Free Cash Flow	₹36 Cr	₹48 Cr	₹10 Cr	-₹16 Cr	—

🟢 Revenue has grown at 13.9% a year over 3 years.

🟢 EBITDA has grown at 4.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.2% to 13.4% over 3 years (-3.8 pts).

🟢 PAT (Net Profit) has grown at 5.9% a year over 3 years.

🟢 EPS has grown at 5.9% a year over 3 years.

🟡 ROE has held roughly flat at 6.1% over 3 years.

🟡 ROCE has held roughly flat at 8.8% over 3 years.

🔴 Total Debt has grown at 9.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹36 Cr to -₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,097 Cr

Total Liabilities

₹417 Cr

Cash & Equivalents

₹75 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.7%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

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

6 general

Is Nath Bio-Genes India the Best Stock in Its Sector? A Look at the Numbers

Univest, 01 Oct

Nath Bio-Genes (NATHBIOGEN.NS) Slips 2.25% to ₹148.38, Holding Mid-Range Between Key Levels - Arms Index

https://www.siam.in/, 22 Sept

Nath Bio-Genes promoters hold 45.60% stake, encumber shares

scanx.trade, 20 Jun

Nath Bio-Genes (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Nath Bio-Genes (India) Share Price Forecast to 2030

Univest, 22 Jul

Nath Bio-Genes (NATHBIOGEN.NS) Eases 0.76% to ₹147.01, Holding Above ₹139.66 Support - Investment Factor

siam.in, 20 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

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. 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 ↑