Naturo Agrotech India Limited

Consumer Defensive — Household & Personal Products · BSE

₹2.36₹0.00 (0.00%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money. Thin profit margins are 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 Naturo Agrotech India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Naturo Agrotech India Limited trades in fast-moving consumer goods (FMCG) and health care products in India. The company trades in herbal juices, soaps, shampoos, sanitary pads, personal care items, household goods, and other products.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, 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 -2.0% 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 ROE27.4%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of -2.0% is below 10% — capital is not working hard
✗ ROCE has fallen by 7.7 points — returns are eroding
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

36/ 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

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 4.3% to -2.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.8% to -2.0% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 136% over 3 years, from ₹3 Cr to ₹8 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -8.7x — 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.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -9.7x to -8.7x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 85% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 4.3% to -2.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
4 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

1Interest cover stays above 3x✗ -8.7x
How much operating profit can fall before interest stops being comfortably covered.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -2.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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)
✓ 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 · 3 neutral · 4 weak

Market Cap

₹4 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

0.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.44

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.2%

Weak

Weak capital efficiency

ROCE

-2.0%

Weak

Low return on total capital employed

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

36.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-0.6%

Weak

Assets generate little profit

Operating Margin

-291703400.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.4 / 2.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹42 Cr	₹2 Cr	—	—
EBITDA	₹2 Cr	₹1 Cr	-₹1 Cr	-₹0 Cr	—
EBITDA Margin	10.4%	3.5%	-30.6%	—	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹1 Cr	-₹1 Cr	—
EPS	₹0.7	₹0.67	₹-0.69	—	—
ROE	4.3%	2.6%	-3.5%	-2.3%	—
ROCE	5.8%	3.1%	-3.3%	-2.0%	—
Total Debt	₹3 Cr	₹12 Cr	₹8 Cr	₹8 Cr	+33.2%
Free Cash Flow	-₹14 Cr	-₹22 Cr	₹0 Cr	₹0 Cr	—

🔴 EBITDA has turned negative, from ₹2 Cr to -₹0 Cr.

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹1 Cr.

🔴 ROE has fallen from 4.3% to -2.3% over 3 years (-6.5 pts).

🔴 ROCE has fallen from 5.8% to -2.0% over 3 years (-7.7 pts).

🔴 Total Debt has grown at 33.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹14 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹82 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.5%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed1 negative3 general

Naturo Agrotech Q2FY26 Results: Zero revenue, qualified audit issued

scanx.trade, 09 OctResults

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

RO Jewels (BSE:543171) - Stock Analysis

Simply Wall Street, 06 Oct

Naturo Agrotech FY26 Results: Net loss of ₹82.08 lakh, auditor issues qualified opinion

scanx.trade, 28 SeptResults

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

BSE issues show cause notice to Naturo Indiabull for compulsory delisting

scanx.trade, 29 SeptRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Naturo Agrotech fixes 10th AGM, recommends two director appointments

scanx.trade, 09 Sept

Investing in SMEs? 15 stocks crashing 80% each in market correction offer a stark warning

The Economic Times, 07 Mar

Watch Items

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑