Vishwas Agri Seeds Limited

Sector n/a · NSE

₹86.75+₹14.45 (+19.99%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

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

How does it make money?

Turns over ₹65 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

EBITDA margin12.1%

Net margin8.2%

What is its competitive advantage?Some evidence

ROCE of 32.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE32.8%

ROE37.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 1 years revenue moved +1% while net margin moved +114% 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+1%

Margin effect+114%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

60/ 100

Fair

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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

13.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 7.0% to 12.1% over 1 years.
High return on capital employed
ROCE of 32.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 51.8% to 37.3% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 83% against revenue growth of 1% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 83% against revenue up 1% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.8% 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 7.0% to 12.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 83% against revenue up 1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 0.7% 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 51.8% to 37.3%. 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.
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 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 4% a year✗ 0.7% CAGR
Latest reported year was 0.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 30%✓ 32.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹87 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

37.3%

Strong

Strong capital efficiency

ROCE

32.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.31x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.7%

Modest

Modest growth

Profit Growth (YoY)

115.4%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹86.75

Gross Margin

18.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.2%

Average

Average bottom-line conversion

Current Ratio

1.28

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

40.6 / 41.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.4

Neutral momentum

Financial Trend (2-Year)

Metric	FY22	FY23	1Y CAGR
Revenue	₹65 Cr	₹65 Cr	+0.7%
EBITDA	₹5 Cr	₹8 Cr	+75.4%
EBITDA Margin	7.0%	12.1%	—
PAT (Net Profit)	₹2 Cr	₹5 Cr	+115.4%
ROE	51.8%	37.3%	—
ROCE	34.2%	32.8%	—
Total Debt	₹17 Cr	₹19 Cr	+10.6%
Free Cash Flow	-₹3 Cr	-₹4 Cr	—

🟡 Revenue has been broadly flat over 1 years (0.7% a year).

🟢 EBITDA has grown at 75.4% a year over 1 years.

🟢 EBITDA Margin has risen from 7.0% to 12.1% over 1 years (+5.2 pts).

🟢 PAT (Net Profit) has grown at 115.4% a year over 1 years.

🔴 ROE has fallen from 51.8% to 37.3% over 1 years (-14.5 pts).

🔴 ROCE has fallen from 34.2% to 32.8% over 1 years (-1.4 pts).

🔴 Total Debt has grown at 10.6% a year over 1 years.

Balance Sheet & Cash Flow — FY2023

Total Assets

₹54 Cr

Total Liabilities

₹39 Cr

Total Debt

₹19 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹10 Cr

Recent News

6 general

VISHWAS Stock Price and Chart — NSE:VISHWAS

TradingView, 19 Apr

VISHWAS AGRI SEEDS LTD Share Price

Upstox, 16 Apr

Spright Agro (BSE:531205) - Stock Analysis

Simply Wall Street, 06 Nov

Number of Agri startups jumps multifold to 7,000 in last 9 years: Report

Business Standard, 15 May

IPO Watch: Rays Power Infra raises ₹54 crore via pre-IPO placement

Livemint, 01 Apr

Refractory Shapes sees strong debut, lists at 142% premium on NSE SME

Business Standard, 14 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong14.1/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate9.3/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 10%12.1%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹4 Cr
✗Revenue growth stays above 4% a year0.7% CAGR
✓ROCE stays above 30%32.8%