Agastya Energy and Infrastructure Ltd

Basic Materials — Chemicals · NSE

₹73.89₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

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

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Agastya Energy and Infrastructure Ltd — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Agastya Energy and Infrastructure Limited manufactures and sells cuprous chloride, cupric chloride, and copper sulphate in India and internationally. It also offers copper phthalocyanine blue.

IndustryChemicals

SectorBasic Materials

Annual revenue₹176 Cr

How does it make money?

Turns over ₹176 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹-3 left at the operating level before interest, tax and depreciation.

EBITDA margin-3.3%

Net margin-5.5%

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of -15.7% 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.

ROCE-15.7%

ROE-20.9%

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved -2060% 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+19%

Margin effect-2060%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 21.9 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

29/ 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

P/E (Trailing)

Not meaningful

P/B

4.13x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 57% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 2.4% to -3.3% over 3 years.
Return on equity is falling
ROE has dropped from 1.0% to -20.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 7.0% to -15.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -4.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹10 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 2.4% to -3.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.3x to -4.1x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 36% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 57% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹15 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?

Margins are being competed away
EBITDA margin has fallen from 2.4% to -3.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.9% 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 1.0% to -20.9%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -5%✓ -3.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -4.1x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was -44.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -15.7%
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

2 good · 3 neutral · 6 weak

Market Cap

₹191 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

4.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-7.2

Loss-making

Negative earnings per share — the business is losing money

ROE

-20.9%

Weak

Weak capital efficiency

ROCE

-15.7%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-44.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-1666.3%

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

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹73.89

Operating Margin

-44.7%

Weak

Thin margins leave little room for error

Net Margin

-13.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

69.3 / 62.9

Bullish alignment (short > long)

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹149 Cr	₹152 Cr	₹230 Cr	₹176 Cr	+5.9%
EBITDA	₹4 Cr	₹4 Cr	₹5 Cr	-₹6 Cr	—
EBITDA Margin	2.4%	2.9%	2.2%	-3.3%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	-₹10 Cr	—
EPS	₹0.22	₹0.41	₹0.24	₹-3.74	—
ROE	1.0%	1.9%	1.1%	-20.9%	—
ROCE	7.0%	8.4%	5.6%	-15.7%	—
Total Debt	₹29 Cr	₹33 Cr	₹26 Cr	₹12 Cr	-24.6%
Free Cash Flow	₹13 Cr	-₹6 Cr	-₹6 Cr	₹15 Cr	+6.0%

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

🔴 EBITDA has turned negative, from ₹4 Cr to -₹6 Cr.

🔴 EBITDA Margin has fallen from 2.4% to -3.3% over 3 years (-5.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹10 Cr.

🔴 EPS has turned negative, from ₹0.22 to ₹-3.74.

🔴 ROE has fallen from 1.0% to -20.9% over 3 years (-21.9 pts).

🔴 ROCE has fallen from 7.0% to -15.7% over 3 years (-22.7 pts).

🟢 Total Debt has shrunk at 24.6% a year over 3 years.

🟢 Free Cash Flow has grown at 6.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹77 Cr

Total Liabilities

₹30 Cr

Total Debt

₹12 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹0 Cr

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

6 general

Stocks to Watch Today: Wipro, Solar, Agastya, TechM, Mankind

HDFC Sky, 16 Oct

Agastya Energy and Infrastructure Limited (AGASTYAEN.NS) stock price, news, quote and history

Yahoo Finance Australia, 17 Oct

Agastya Energy and Infrastructure (NSEI:AGASTYAEN) - Stock Analysis

Simply Wall Street, 25 Sept

Agastya Energy and Infrastructure Ltd is Rated Strong Sell

MarketsMojo, 17 Oct

Stocks to Watch Today: Tech Mahindra, IIFL Finance, Persistent, Angel One, Lotus Developers, Solar...

Moneycontrol.com, 16 Oct

AGASTYAEN Stock Price and Chart — NSE:AGASTYAEN

TradingView, 25 Sept

Watch Items

Revenue growth is negative (-44.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟢Financial HealthStrong14.7/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓EBITDA margin holds above -5%-3.3%
✗Interest cover stays above 3x-4.1x
✓Revenue growth stays above 4% a year5.9% CAGR
✓Free cash flow remains positive₹15 Cr
✗ROCE stays above 8%-15.7%