Spright Agro Limited

Basic Materials — Agricultural Inputs · BSE

₹0.35+₹0.01 (+2.94%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Spright Agro Limited engages in the trade of agricultural products in India. It provides contract farming, greenhouse technology, modern agro farming, aeroponics, organic farming, and cold storage services.

IndustryAgricultural Inputs

SectorBasic Materials

Annual revenue₹105 Cr

How does it make money?

Turns over ₹105 Cr a year. Of every ₹100 of sales, about ₹-12 reaches shareholders as profit, with ₹-12 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of -10.7% 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.

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 +1264% while net margin moved -9088% 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+1264%

Margin effect-9088%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

45/ 100

Fair

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

—

Red Flags

7 items require attention · 6 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 5659% over 3 years, from ₹0 Cr to ₹8 Cr.
🔴High leverageFinancial
Debt/Equity of 6.48x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹12 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.1 points, from 0.2% to -11.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 2535% against revenue up 1264% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22587% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 0.2% to -11.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 6.48x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 2535% against revenue up 1264%. 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.

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

1Revenue growth stays above 104% a year✓ 138.9% CAGR
Latest reported year was -100.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -14%✓ -11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹14 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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 · 1 neutral · 8 weak

Market Cap

₹38 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

0.33x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.2

Loss-making

Negative earnings per share — the business is losing money

ROE

-10.7%

Weak

Weak capital efficiency

ROCE

-10.7%

Weak

Low return on total capital employed

Debt/Equity

6.48x

High

High leverage

Revenue Growth (YoY)

-100.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-163.8%

Falling

Profits are shrinking

Dividend Yield

5.71%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-710.0%

Weak

Thin margins leave little room for error

Net Margin

-50.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹72 Cr	₹165 Cr	₹105 Cr	+138.9%
EBITDA	₹0 Cr	₹13 Cr	₹20 Cr	-₹12 Cr	—
EBITDA Margin	0.2%	18.1%	12.4%	-11.9%	—
PAT (Net Profit)	₹0 Cr	₹12 Cr	₹20 Cr	-₹12 Cr	—
EPS	₹0.01	₹0.78	₹0.18	₹-12	—
ROE	—	17.6%	15.0%	-10.7%	—
ROCE	—	19.2%	15.6%	-10.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹8 Cr	+286.2%
Free Cash Flow	₹0 Cr	-₹22 Cr	-₹42 Cr	-₹14 Cr	—

🟢 Revenue has grown at 138.9% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹12 Cr.

🔴 EBITDA Margin has fallen from 0.2% to -11.9% over 3 years (-12.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹12 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-12.

🔴 ROE has fallen from 17.6% to -10.7% over 3 years (-28.3 pts).

🔴 ROCE has fallen from 19.2% to -10.7% over 3 years (-29.9 pts).

🔴 Total Debt has grown at 286.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹136 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹14 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.7%

Corporate Actions

Dividend Rate

₹0.02

Ex-Dividend Date

26 Sept 2025

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 mixed4 general

Spright Agro Q4 Results 2026 - Find Spright Agro Q4 Earnings Result | Spright Agro Q4 results

Livemint, 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.

Spright Agro Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Spright Agro Ltd. Stock News: Significant 9.3% Price Rise

Univest, 27 Jul

Spright Agro reports standalone net loss of Rs 0.01 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Spright Agro - 15 penny stocks crash up to 55% in just two weeks. Are you holding any?

The Economic Times, 15 Mar

SPRIGHT AGRO LIMITED Share Price

Upstox, 30 Dec

Watch Items

Revenue growth is negative (-100.0%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongGrowth

MiddlingValuation

WeakBusiness Quality · Financial Health · 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. 6 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑