Teesta Agro Industries Limited

Basic Materials — Agricultural Inputs · BSE

₹112.65+₹1.65 (+1.49%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Teesta Agro Industries Limited manufactures and markets fertilizers in India. The company offers fertilisers and sulphuric acid. Teesta Agro Industries Limited was incorporated in 1986 and is based in Jalpaiguri, India.

IndustryAgricultural Inputs

SectorBasic Materials

Annual revenue₹122 Cr

How does it make money?

Turns over ₹122 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 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 9.5% 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 -39% while net margin moved +83% 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-39%

Margin effect+83%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 15.1% a year
✗ Profit CAGR of only 3.8%

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

74/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

7.6x

3Y Median

9.2x

40 monthly readings · mean 10.9x · range 5.9x–20.8x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 3y median of 9.2x. 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 74% below the peer median of 28.7x.

vs. its own history

Fair

9.2x median over 40 months · -18%

vs. sector peers

Cheap

28.7x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.2x

PEG

1.97

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.5% to 13.3% over 3 years.
Very low debt
Debt/Equity of 0.27x 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

2 items require attention · 1 high · 1 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.5% to 13.3%. 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 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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 11%✓ 13.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 9.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 9.2x✓ 7.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹63 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

0.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹14.92

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

4.5%

Modest

Modest growth

Profit Growth (YoY)

8.9%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.3%

Average

Average asset productivity

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

113.5 / 114.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹199 Cr	₹98 Cr	₹117 Cr	₹122 Cr	-15.1%
EBITDA	₹13 Cr	₹7 Cr	₹13 Cr	₹16 Cr	+8.0%
EBITDA Margin	6.5%	7.4%	11.2%	13.3%	—
PAT (Net Profit)	₹7 Cr	₹4 Cr	₹7 Cr	₹8 Cr	+3.8%
EPS	₹13.2	₹6.49	₹12.2	₹14.79	+3.9%
ROE	6.9%	3.3%	5.8%	6.5%	—
ROCE	9.3%	4.9%	8.2%	9.5%	—
Total Debt	₹26 Cr	₹13 Cr	₹21 Cr	₹28 Cr	+2.6%
Free Cash Flow	-₹12 Cr	-₹0 Cr	₹8 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 15.1% a year over 3 years.

🟢 EBITDA has grown at 8.0% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 13.3% over 3 years (+6.9 pts).

🟢 PAT (Net Profit) has grown at 3.8% a year over 3 years.

🟢 EPS has grown at 3.9% a year over 3 years.

🟡 ROE has held roughly flat at 6.5% over 3 years.

🟡 ROCE has held roughly flat at 9.5% over 3 years.

🔴 Total Debt has grown at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹210 Cr

Total Liabilities

₹84 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

3.8%

Insider Holding

52.1%

Corporate Actions

Ex-Dividend Date

16 Sept 2022

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

1 positive1 mixed4 general

Teesta Agro Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 02 Sept

Teesta Agro Industries FY26 net profit rises 21.2% to ₹823 lakh

scanx.trade, 26 MayResults

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

DHANSA Stock Price and Chart — NSE:DHANSA

TradingView, 02 Jun

Dhansa Labs (NSEI:DHANSA) - Stock Analysis

Simply Wall Street, 02 Jun

ESAF Small Finance Bank reports standalone net profit of Rs 80.08 crore in the June 2026 quarter

Business Standard, 31 JulResults

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

Fertiliser stocks surge up to 5%; THIS is the reason behind the rally

Zee Business, 06 Apr

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

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