ShreeOswal Seeds and Chemicals Limited

Basic Materials — Agricultural Inputs · NSE

₹11.90+₹0.21 (+1.80%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

ShreeOswal Seeds and Chemicals Limited produces, processes, and sells various agricultural seeds in India. It operates through two segments, Seed and Psyllium.

IndustryAgricultural Inputs

SectorBasic Materials

Employees34

Annual revenue₹248 Cr

How does it make money?

Turns over ₹248 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹7.30 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.30 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 26.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 -9% while net margin moved +39% 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-9%

Margin effect+39%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.0% a year
• Profit CAGR of 8.2%

Quality vs. Valuation

Company Quality

46/ 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

8.9x

3Y Median

35.4x

40 monthly readings · mean 40.5x · range 14.9x–94.9x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 75% below its 3y median of 35.4x. 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 69% below the peer median of 28.7x.

vs. its own history

Cheap

35.4x median over 40 months · -75%

vs. sector peers

Cheap

28.7x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.6x

PEG

1.10

What's Good / What's Bad

🟢 What's Going Well1

High return on capital employed
ROCE of 26.0% is the mark of a business that converts capital into profit efficiently.

🔴 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

🔴Debt has risen sharplyFinancial
Total debt is up 51% over 3 years, from ₹41 Cr to ₹62 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 315% against revenue up -9% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹14 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 75% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 315% against revenue up -9%. 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

1EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 23%✓ 26.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 5 neutral · 1 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.9x

Cheap

Cheap against the generic band

P/B Ratio

2.14x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.33

Profitable

Profitable on a per-share basis

ROE

14.2%

Moderate

Moderate capital efficiency

ROCE

26.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.21x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.5%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

15.5%

Good

Healthy core-business profitability

Net Margin

4.6%

Average

Average bottom-line conversion

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.83

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.4 / 12.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹272 Cr	₹269 Cr	₹246 Cr	₹248 Cr	-3.0%
EBITDA	₹12 Cr	₹1 Cr	₹10 Cr	₹15 Cr	+6.4%
EBITDA Margin	4.4%	0.3%	3.9%	5.9%	—
PAT (Net Profit)	₹6 Cr	-₹4 Cr	₹4 Cr	₹7 Cr	+8.2%
EPS	₹0.62	₹-0.45	₹0.39	₹0.79	+8.4%
ROE	12.9%	-10.3%	8.1%	14.2%	—
ROCE	24.6%	0.7%	19.9%	26.0%	—
Total Debt	₹41 Cr	₹64 Cr	₹42 Cr	₹62 Cr	+14.7%
Free Cash Flow	₹8 Cr	-₹19 Cr	₹24 Cr	-₹14 Cr	—

🔴 Revenue has shrunk at 3.0% a year over 3 years.

🟢 EBITDA has grown at 6.4% a year over 3 years.

🟢 EBITDA Margin has risen from 4.4% to 5.9% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 8.2% a year over 3 years.

🟢 EPS has grown at 8.4% a year over 3 years.

🟢 ROE has risen from 12.9% to 14.2% over 3 years (+1.3 pts).

🟢 ROCE has risen from 24.6% to 26.0% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 14.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹141 Cr

Total Liabilities

₹90 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹1 Cr

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

2 positive4 general

Golden Cross Forms in Shreeoswal Seeds & Chemicals Ltd — Mixed Technical Signals Cloud the Outlook

MarketsMojo, 16 Oct

Shreeoswal Seeds NSE:OSWALSEEDS Share Price Clarification

Kalkine India, 08 Oct

Shree Oswal Seeds and Chemicals Share Price Analysis

Univest, 15 Sept

1:5 bonus shares, 1:5 stock split effect: Multibagger NSE SME stock turns ₹1.04 lakh into ₹11.64 lakh in 8 years

Livemint, 13 OctCapital return

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

Shreeoswal Seeds promoters hold 30.29M shares in FY26

scanx.trade, 22 Jun

Shreeoswal Seeds & Chemicals consolidated net profit rises 68.54% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

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

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Risk

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑