Quanto Agroworld Limited

Consumer Defensive — Farm Products · BSE

₹61.00−₹1.75 (−2.79%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Quanto Agroworld Limited engages in the cultivation of aromatic crops and the production of specialty ingredients such as lemongrass-based botanical formats and essential oils. The company's products comprise lemongrass biomass, chunks, tea-cuts, and essential oils.

IndustryFarm Products

SectorConsumer Defensive

Employees11

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹40 reaches shareholders as profit, with ₹56 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹1.50 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.50 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, 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?Some evidence

ROCE of 25.0% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved +250% 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+4%

Margin effect+250%

DalalBaazaar Score

66/ 100

Good

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

70/ 100

Good

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

Valuation

79/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.0x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 70% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -70%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.3x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 11.8% to 56.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 25.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 30.9% to 25.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.7% to 25.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹3 Cr to ₹5 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.0% 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.
Margin expansion has further to run
EBITDA margin has risen from 11.8% to 56.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Growth barely outpaces inflation
Revenue compounding at 1.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 30.9% to 25.9%. 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
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

1EBITDA margin holds above 54%✓ 56.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.2% CAGR
Latest reported year was 6.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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)
✓ 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

2.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.7

Profitable

Profitable on a per-share basis

ROE

28.1%

Strong

Strong capital efficiency

ROCE

25.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

6.0%

Modest

Modest growth

Profit Growth (YoY)

23.4%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

15.3%

Good

Assets are working hard

Operating Margin

15.0%

Good

Healthy core-business profitability

Net Margin

20.8%

Good

Strong bottom-line conversion

Current Ratio

4.71

Comfortable

Healthy short-term liquidity

52W Range Position

37%

Mid-range

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹16 Cr	₹12 Cr	₹16 Cr	₹16 Cr	+1.2%
EBITDA	₹2 Cr	₹2 Cr	₹7 Cr	₹9 Cr	+70.1%
EBITDA Margin	11.8%	18.4%	47.3%	56.1%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹5 Cr	₹7 Cr	+53.7%
EPS	₹1.02	₹1.16	₹3.01	₹3.71	+53.7%
ROE	30.9%	14.9%	28.3%	25.9%	—
ROCE	30.7%	14.9%	30.6%	25.0%	—
Total Debt	₹3 Cr	₹3 Cr	₹4 Cr	₹5 Cr	+25.1%
Free Cash Flow	-₹1 Cr	-₹9 Cr	-₹3 Cr	₹1 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.2% a year).

🟢 EBITDA has grown at 70.1% a year over 3 years.

🟢 EBITDA Margin has risen from 11.8% to 56.1% over 3 years (+44.3 pts).

🟢 PAT (Net Profit) has grown at 53.7% a year over 3 years.

🟢 EPS has grown at 53.7% a year over 3 years.

🔴 ROE has fallen from 30.9% to 25.9% over 3 years (-5.0 pts).

🔴 ROCE has fallen from 30.7% to 25.0% over 3 years (-5.7 pts).

🔴 Total Debt has grown at 25.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹33 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.4%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

3 mixed3 general

Quanto Agroworld Limited Share Price - Live QAL Stock Price & Chart

Upstox, 16 Oct

Quanto Agroworld Q1 Results 2026 - Find Quanto Agroworld Q1 Earnings Result | Quanto Agroworld Q1 results

Livemint, 17 OctResults

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

Diluted earnings per share (diluted EPS) of Quanto Agroworld Limited – BSE:QAL

TradingView, 16 OctResults

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

Genz and Aikyata acquire 5.68% stake in Quanto Agroworld

scanx.trade, 05 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

QAL 52 Week High Streak: Second Straight Session Update

Univest, 13 Oct

Quanto Agroworld IPO Date, Price Band, GMP, Subscription & Allotment

IndiaIPO, 11 Sept

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑