Arrow Greentech Limited (ARROWGREEN) AI Stock Analysis

• Market Cap: ₹5.75B
• Dividend Yield: 0.78%
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.25
• Revenue Growth: 4.16%
• EPS Growth: -5.39%
• Country: IN
• Employees: 108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 8.82
• Shares Outstanding: 15,087,938
• 10 Day Avg. Volume: 1,528
• 30 Day Avg. Volume: 4,960
• PEG Ratio: 0.11
• Price to Book (P/B): 4.36
• Price to Sales (P/S): 3.37
• P/FCF Ratio: 13.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹440.00 ▼(-13.07% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily supported by strong financial performance (rapid growth, improved margins, low leverage, and solid free cash flow). This is offset by weak technicals showing a broader downtrend and negative momentum, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Multi-year Revenue Growth

Sustained high CAGR from 2020–2025 shows enduring customer adoption of the company’s polymer products. Persistent top‑line expansion supports scale economics, funds R&D and capacity builds, and strengthens distribution leverage, improving long‑term competitive positioning.

Improved Profitability and Margins

Material margin expansion to 54% gross and 26% net reflects improved product mix, pricing power and operating efficiency. Durable higher margins create a structural earnings cushion against cyclical swings and free up cash for reinvestment and strategic initiatives.

Strong Cash Generation and Low Leverage

Robust free cash flow combined with extremely low leverage provides lasting financial flexibility. The cash generation supports capex, working capital and potential shareholder returns while reducing reliance on external funding during downturns or growth investments.

Negative Factors

Rising Total Liabilities

An upward trend in total liabilities, even with low debt ratios, raises structural risk if it reflects growing payables, deferred liabilities or off‑balance obligations. Continued increases could constrain liquidity, force working capital tradeoffs, or limit strategic flexibility.

Recent Revenue and EPS Contraction

Recent negative revenue and EPS growth signal a near‑term slowdown that may persist into subsequent quarters. If this weakness continues, it could erode margin gains and cash conversion, making prior multi‑year growth and profitability improvements harder to sustain.

Limited Scale and Market Liquidity

A small employee base and very low trading volumes indicate limited operational scale and public market liquidity. This heightens execution risk for rapid expansion, complicates large capital raises or M&A, and makes investor exits or price discovery more difficult.

Arrow Greentech Limited Business Overview & Revenue Model

Company Description

Arrow Greentech Limited, together with its subsidiaries, manufactures, sells, and exports cast water soluble films and security films worldwide. It offers packaging films for packaging agro chemicals, cement/dyes/enzymes, liquid detergents, fish bait, seed tapes, laundry bags, toilet blocks, and powder detergents. The company also provides embroidery films, water soluble soap strips, mold release films, and water transfer printing films for decoration of a range of products. In addition, it offers plasticizer-free thermoplastic and transparent materials. Further, the company provides security based products; and pharmaceutical products, as well as intellectual property and based products. The company was formerly known as Arrow Coated Products Limited and changed its name to Arrow Greentech Limited in May 2016. Arrow Greentech Limited was incorporated in 1992 and is based in Mumbai, India.

How the Company Makes Money

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Arrow Greentech Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and materially improved profitability (gross margin 54% and net margin 26% in 2025). Balance sheet leverage is very conservative (debt-to-equity 0.004) with a high equity ratio (90.3%), while rising liabilities are a moderate watch item. Cash generation is robust with positive and growing free cash flow (607.8M in 2025).

Income Statement

Arrow Greentech Limited has demonstrated significant revenue growth, increasing from 222.6M in 2020 to 2.43B in 2025, representing a CAGR of approximately 59%. The gross profit margin has improved consistently, reaching 54% in 2025. Net profit margin improved to 26% in 2025 from past negative margins, indicating enhanced profitability. The company has shown strong EBIT and EBITDA margins, reflecting efficient operations and cost management.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.004, indicating conservative leverage. Stockholders' equity has grown significantly, showing financial robustness. However, total liabilities have increased over the years, which could pose potential risks if not managed carefully. The equity ratio stands at a healthy 90.3%, reflecting strong financial health and stability.

Cash Flow

Operating cash flow has grown substantially, enhancing liquidity. Free cash flow has turned positive, reaching 607.8M in 2025, indicating effective capital management. The ratio of operating cash flow to net income is favorable, suggesting strong cash-generating capability relative to net profits. This robust cash flow position supports potential reinvestment and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.15B	2.43B	1.49B	1.09B	335.60M	523.13M
Gross Profit	1.12B	1.31B	883.70M	544.80M	137.20M	223.49M
EBITDA	743.40M	936.10M	488.10M	254.60M	-54.88M	109.10M
Net Income	509.40M	631.30M	295.10M	122.80M	-93.27M	64.09M
Balance Sheet
Total Assets	2.36B	2.08B	1.45B	1.21B	886.53M	990.34M
Cash, Cash Equivalents and Short-Term Investments	1.37B	911.70M	209.40M	254.40M	103.97M	133.92M
Total Debt	26.00M	6.70M	12.40M	34.50M	47.27M	52.36M
Total Liabilities	229.60M	183.70M	165.90M	211.80M	118.58M	124.47M
Stockholders Equity	2.12B	1.88B	1.27B	982.00M	746.92M	845.47M
Cash Flow
Free Cash Flow	423.80M	607.80M	79.40M	-10.00M	-62.91M	-41.25M
Operating Cash Flow	445.70M	675.70M	183.80M	29.80M	24.02M	7.12M
Investing Cash Flow	-297.00M	-545.80M	-129.90M	-141.40M	-22.47M	23.23M
Financing Cash Flow	-65.20M	-39.20M	-42.80M	84.00M	-16.19M	-16.01M

Arrow Greentech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 506.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARROWGREEN, the sentiment is Negative. The current price of 506.15 is above the 20-day moving average (MA) of 387.72, above the 50-day MA of 425.03, and below the 200-day MA of 552.19, indicating a bearish trend. The MACD of -15.63 indicates Negative momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 61.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARROWGREEN.

Arrow Greentech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LINC	73 Outperform	₹6.12B	23.84	―	1.35%	3.76%	<0.01%
ARROWGREEN	70 Outperform	₹5.75B	14.33	―	0.78%	4.16%	-5.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROHLTD	61 Neutral	₹8.62B	31.71	―	0.61%	10.77%	-4.40%
SNOWMAN	50 Neutral	₹5.73B	-89.54	―	2.44%	9.91%	-66.86%
REPRO	49 Neutral	₹5.24B	221.21	―	―	2.88%	-828.14%
PAKKA	46 Neutral	₹3.85B	16.80	―	―	-11.28%	-62.38%

Arrow Greentech Limited Corporate Events

Arrow Greentech faces Rs. 1.80 crore tax penalty, sees no material impact

Arrow Greentech Limited has disclosed that the Income Tax Department has issued a demand order for a penalty of Rs. 1.80 crore for assessment year 2017-18, following a penalty order under Section 270A of the Income Tax Act. The penalty stems from the dismissal of the company’s appeal against disallowances of certain expenditure and deductions claimed under various provisions of the tax law.

The company stated that the demand notice is not expected to have a material impact on its financials, operations, or other activities. Arrow Greentech plans to file an appeal against the penalty within the stipulated period and has already approached the Income Tax Appellate Tribunal and requested a stay on recovery pending the outcome of those proceedings.

Arrow Greentech Schedules One-on-One Analyst and Investor Meet for 26 February 2026

Arrow Greentech Limited has announced that its officials will hold a one-on-one meeting with analysts and institutional investors on Thursday, 26 February 2026, from 3:30 p.m. to 4:30 p.m. IST. The interaction will be limited to publicly available information, signaling ongoing engagement with the investment community while noting that the schedule may change due to exigencies for the host or the company.