Heranba Industries Limited (HERANBA) AI Stock Analysis

• Market Cap: ₹7.47B
• Dividend Yield: 0.39%
• Average Volume (3M): 3.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,250
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -5.81
• Shares Outstanding: 40,013,466
• 10 Day Avg. Volume: 4,133
• 30 Day Avg. Volume: 3,992
• PEG Ratio: -3.18
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -5.09
• 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: 49 Neutral
• Price Target: ₹186.00 ▼(-23.60% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by operational and cash-flow weakness (declining margins and negative free cash flow) and a clearly bearish technical setup (price below key moving averages with weak momentum). A relatively steadier balance sheet provides some offset, while valuation support is limited due to the negative P/E and low dividend yield.

Positive Factors

Balance-sheet strength

A strong equity position and an increasing asset base give Heranba durable financial stability, lowering insolvency risk. Moderate leverage combined with a solid equity ratio provides flexibility to fund working capital, absorb cyclical agricultural shocks, and pursue selective capex or registrations over the next 2–6 months.

Operational cash resilience (EBITDA)

Sustained positive EBITDA margins indicate the underlying formulation and technical businesses can generate operating cash before financing and tax. That operational resilience supports short-to-medium term capacity to cover fixed costs, maintain production, and invest in key registrations despite pressure on net margins.

Diversified product and revenue streams

A product mix across insecticides, herbicides, fungicides and technicals plus domestic, B2B and export channels provides structural diversification. This reduces single-market or single-molecule dependence, enabling more stable revenue and cross-selling opportunities through seasonal cycles and regulatory shifts over the medium term.

Negative Factors

Negative free cash flow

Persistently negative free cash flow means net income is not converting into incremental cash after capex, constraining internal funding for growth, registrations, or dividends. Over 2–6 months this raises reliance on external financing and limits agility to respond to raw-material cost spikes or invest in new molecule registrations.

Falling profitability and ROE

A marked decline in ROE and falling net/EBIT margins signal structural margin pressure, possibly from input-cost inflation, pricing compression or increased operating expenses. Reduced capital efficiency undermines long-term returns to shareholders and may constrain reinvestment or dividend policy over the medium term.

Volatile and declining revenue trend

Inconsistent top-line performance and a recent revenue decline weaken predictability for production planning and fixed-cost absorption. For an agrochemical firm, reduced scale can amplify margin pressure and hamper investments in registrations or new product launches, creating a durable headwind to improving profitability.

Heranba Industries Limited Business Overview & Revenue Model

Company Description

Heranba Industries Limited manufactures, markets, and sells a range of agrochemicals in India. The company provides intermediates, such as cypermethric acid chloride, high CIS CMA and CMAC, high trans CMA and CMAC, bromobenzenes, metaphenoxy benzaldehyde and benzyl alcohol, and NPBR; and technical products, including cypermethrin, deltamethrin, alpha cypermethrin, acephate, lambda cyhalothrin, bifenthrin, and tranfluthrin, as well as tricyclazole, hexaconazole, tebuconazole, glyphosate, metribuzin, clodinafop, and bispyribac sodium. It also offers formulations comprising emulsifiable concentrate, water dispersible granule, suspension concentrate, capsule suspension, oil dispersion, concentrated aqueous emulsions, suspoemulsion, and zc formulation. In addition, the company provides various pesticides, including insecticides, herbicides, fungicides, and public health products for pest control. Heranba Industries Limited also exports its products to approximately 65 countries. The company was formerly known as Heranba Industrial Chemicals Limited and changed its name to Heranba Industries Limited in July 1996. Heranba Industries Limited was incorporated in 1992 and is based in Mumbai, India.

How the Company Makes Money

Heranba Industries generates revenue primarily through the sale of its agrochemical products, which include a variety of pesticides, herbicides, and fungicides. The company has established multiple revenue streams by offering a comprehensive portfolio of formulations tailored to different crops and pest management needs. Additionally, HERANBA engages in exports, which contribute significantly to its income, tapping into international markets. The company benefits from strategic partnerships with agricultural cooperatives and distributors, thereby enhancing its market reach and sales volume. Furthermore, HERANBA invests in research and development to innovate new products that meet evolving agricultural challenges, which can lead to increased market share and profitability.

Heranba Industries Limited Financial Statement Overview

Summary

Mixed fundamentals: balance sheet is comparatively stable (moderate leverage, strong equity ratio), but profitability weakened (notable drop in net/EBIT margins and ROE) and cash generation is a key concern with recent negative free cash flow.

Income Statement

Heranba Industries Limited demonstrated a volatile revenue and profit trajectory. The revenue growth rate has been inconsistent, with a notable decline in 2025 compared to 2024. Gross profit margins have been relatively stable, but the net profit margin significantly declined from 2024 to 2025, indicating increased operational challenges. The EBIT margin also decreased, reflecting potential inefficiencies. However, the EBITDA margin remained positive, suggesting some resilience in operational cash generation.

Balance Sheet

The company maintains a healthy equity position with an increasing total assets base. The debt-to-equity ratio is moderate, indicating balanced leverage, though debt levels have increased over the years. Return on equity has dropped significantly, indicating reduced profitability. The equity ratio remains strong, suggesting stability and lower financial risk.

Cash Flow

Free cash flow has been negative in recent years, highlighting challenges in cash generation after capital expenditures. The operating cash flow to net income ratio suggests operational cash generation issues, as seen in the declining operating cash flows. The free cash flow to net income ratio is also unfavorable, indicating that net income is not translating into free cash flow effectively.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.53B	14.17B	12.49B	13.11B	14.35B	12.02B
Gross Profit	5.14B	4.72B	3.70B	4.29B	5.04B	4.23B
EBITDA	897.33M	1.05B	886.70M	1.68B	2.79B	2.28B
Net Income	-472.10M	30.70M	348.90M	1.04B	1.89B	1.54B
Balance Sheet
Total Assets	21.84B	18.13B	14.80B	11.62B	10.69B	8.43B
Cash, Cash Equivalents and Short-Term Investments	429.90M	426.00M	287.00M	1.22B	1.05B	847.80M
Total Debt	5.13B	3.49B	1.65B	930.00M	539.62M	523.06M
Total Liabilities	13.33B	9.63B	6.27B	3.52B	3.54B	3.15B
Stockholders Equity	8.42B	8.41B	8.43B	8.10B	7.14B	5.28B
Cash Flow
Free Cash Flow	-1.49B	-1.75B	-1.46B	611.90M	176.37M	362.99M
Operating Cash Flow	-1.22B	1.01B	1.07B	1.23B	981.75M	603.99M
Investing Cash Flow	-265.00M	-2.39B	-2.41B	-1.00B	-816.79M	-407.13M
Financing Cash Flow	1.35B	1.52B	620.20M	-180.80M	-62.80M	619.00M

Heranba Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 243.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HERANBA, the sentiment is Negative. The current price of 243.45 is above the 20-day moving average (MA) of 204.77, above the 50-day MA of 217.30, and below the 200-day MA of 286.67, indicating a bearish trend. The MACD of -8.82 indicates Positive momentum. The RSI at 26.48 is Positive, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HERANBA.

Heranba Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHARDACROP	78 Outperform	₹93.41B	13.57	―	1.02%	33.23%	107.47%
INSECTICID	68 Neutral	₹16.81B	49.77	―	0.71%	6.86%	15.64%
DHANUKA	64 Neutral	₹44.56B	33.24	―	0.17%	4.92%	4.47%
RALLIS	63 Neutral	₹48.37B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUMICHEM	61 Neutral	₹196.06B	77.71	―	0.26%	8.69%	12.26%
HERANBA	49 Neutral	₹7.47B	-10.64	―	0.39%	―	―