Tierra Agrotech Limited

Basic Materials — Agricultural Inputs · BSE

₹36.00+₹1.16 (+3.33%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tierra Agrotech Limited, a technology centric agriculture company, engages in the research, development, production, processing, and commercialization of seeds and related products in India.

IndustryAgricultural Inputs

SectorBasic Materials

Employees154

Annual revenue₹98 Cr

How does it make money?

Turns over ₹98 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹-7 left at the operating level before interest, tax and depreciation. Each of its 154 employees supports ₹63.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹63.9 lakh

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 -7.0% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +64% while net margin moved -89% 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+64%

Margin effect-89%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 181.8 points over the period

Quality vs. Valuation

Company Quality

56/ 100

Average

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.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

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

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -43.0% to -6.8% over 3 years.
Debt is being paid down
Total debt is down 81% over 3 years.
Return on equity is rising
ROE has improved from -186.9% to -5.1%.
Return on capital is rising
ROCE has improved from -43.5% to -7.0%.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.

🔴 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

🔴Thin interest coverageFinancial
Operating profit covers interest only -4.4x — little room if earnings dip.
🔴Free cash flow negative for 4 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 -₹5 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 153% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -43.0% to -6.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 81% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 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.
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

1Revenue growth stays above 13% a year✓ 17.9% CAGR
Latest reported year was 26.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -9%✓ -6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -4.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -7.0%
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

₹234 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

2.33x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.06

Loss-making

Negative earnings per share — the business is losing money

ROE

-5.1%

Weak

Weak capital efficiency

ROCE

-7.0%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-36.1%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.4%

Average

Average margins

Net Margin

-6.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.08

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

40.0 / 44.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹60 Cr	₹67 Cr	₹66 Cr	₹98 Cr	+17.9%
EBITDA	-₹26 Cr	-₹10 Cr	-₹14 Cr	-₹7 Cr	—
EBITDA Margin	-43.0%	-15.4%	-21.8%	-6.8%	—
PAT (Net Profit)	-₹28 Cr	-₹9 Cr	-₹12 Cr	-₹5 Cr	—
EPS	₹-11.22	₹-1.77	₹-1.81	₹-0.78	—
ROE	-186.9%	-13.7%	-11.2%	-5.1%	—
ROCE	-43.5%	-11.7%	-14.5%	-7.0%	—
Total Debt	₹103 Cr	₹21 Cr	₹1 Cr	₹19 Cr	-42.8%
Free Cash Flow	-₹8 Cr	-₹6 Cr	-₹30 Cr	-₹20 Cr	—

🟢 Revenue has grown at 17.9% a year over 3 years.

🟢 EBITDA Margin has risen from -43.0% to -6.8% over 3 years (+36.2 pts).

🟢 ROE has risen from -186.9% to -5.1% over 3 years (+181.8 pts).

🟢 ROCE has risen from -43.5% to -7.0% over 3 years (+36.5 pts).

🟢 Total Debt has shrunk at 42.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹191 Cr

Total Liabilities

₹92 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

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 mixed5 general

Tierra Agrotech Share Price update: sector and valuation

Univest, 13 Oct

Compare with

Equitymaster, 16 Oct

Tierra Agrotech 52 Week Low Streak: What Investors Watch

Univest, 14 Oct

Tierra Agrotech Share Price Drops on BSE; Fundamental View

Univest, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mitra to merge with Tierra Agrotech in Rs 787-crore deal, eyes IPO by 2026

The Economic Times, 14 Jan

Compare with

Equitymaster, 08 Oct

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

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · 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.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑