Nirman Agri Genetics Limited

Sector n/a · NSE

₹415.75−₹21.85 (−4.99%)

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: Reasonable but unspectacular business quality, but sales are shrinking. 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

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

How does it make money?

Turns over ₹197 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.2% 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.

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 +587% while net margin moved -36% 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+587%

Margin effect-36%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

61/ 100

Average

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

Valuation

35/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

17.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 79% over 3 years.
Very low debt
Debt/Equity of 0.18x 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

4 items require attention · 3 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 15.2% to 9.6%.
🔴Receivables growing faster than salesFinancial
Receivables up 1613% against revenue up 587% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 901% against revenue up 587% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹25 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 79% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 15.2% to 9.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 1613% against revenue up 587%. 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.
Several serious flags at once
3 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 68% a year✓ 90.1% CAGR
Latest reported year was -16.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹25 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 7 neutral · 3 weak

Market Cap

₹333 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-16.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-30.4%

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

-₹25 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

10.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

65.06

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

26.9 / 28.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹63 Cr	₹237 Cr	₹197 Cr	+90.1%
EBITDA	₹4 Cr	₹11 Cr	₹27 Cr	₹19 Cr	+62.8%
EBITDA Margin	15.2%	18.1%	11.3%	9.6%	—
PAT (Net Profit)	₹4 Cr	₹10 Cr	₹25 Cr	₹18 Cr	+63.8%
EPS	₹6.06	₹15.74	₹31.57	—	—
ROE	14.9%	27.9%	23.0%	13.8%	—
ROCE	15.4%	29.7%	23.7%	14.2%	—
Total Debt	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-40.9%
Free Cash Flow	-₹1 Cr	₹4 Cr	-₹34 Cr	-₹25 Cr	—

🟢 Revenue has grown at 90.1% a year over 3 years.

🟢 EBITDA has grown at 62.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.2% to 9.6% over 3 years (-5.7 pts).

🟢 PAT (Net Profit) has grown at 63.8% a year over 3 years.

🔴 ROE has fallen from 14.9% to 13.8% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 15.4% to 14.2% over 3 years (-1.2 pts).

🟢 Total Debt has shrunk at 40.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹129 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹24 Cr

Capex

-₹0 Cr

Recent News

1 positive2 mixed1 negative2 general

There Might Be More To Nirman Agri Genetics' (NSE:NIRMAN) Story Than Just Weak Earnings

Simply Wall Street, 08 JunResults

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

SME Nirman Agri Genetics' board to meet on September 30 to consider 1:10 stock split, 1:10 bonus share

The Economic Times, 15 SeptCapital return

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

Nirman Agri Genetics Ltd. Share Price Live Today

CNBC TV18, 16 Jul

Sebi bans Nirman Agri Genetics for IPO fund diversion; alleges 93% fund diverted, halts corporate actions

Moneycontrol.com, 14 Oct

Nirman Agri Shares Fall 5% As SEBI Bars Firm

Samco, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Nirman Agri Genetics FY26 profit falls 30.4% on lower revenue

scanx.trade, 01 JunResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-16.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation

WeakRisk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑