Madras Fertilizers Ltd (MADRASFERT) AI Stock Analysis

• Market Cap: ₹10.63B
• Dividend Yield: N/A
• Average Volume (3M): 10.40K
• Price to Earnings (P/E): 127.2
• Beta (1Y): 1.84
• Revenue Growth: 3.38%
• EPS Growth: 0.68%
• Country: IN
• Employees: 435
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 0.16
• Shares Outstanding: 161,101,300
• 10 Day Avg. Volume: 5,641
• 30 Day Avg. Volume: 10,399
• PEG Ratio: 0.02
• Price to Book (P/B): -36.57
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 8.96
• 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: 48 Neutral
• Price Target: ₹65.00 ▼(-19.35% Downside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

Madras Fertilizers Ltd's stock score is primarily impacted by financial instability and bearish technical indicators. While valuation is moderate, the lack of dividend yield and negative equity are significant concerns. Recent revenue growth offers some optimism, but overall risks remain high.

Positive Factors

Integrated operations and by-product revenue

Integrated manufacturing that generates industrial by-products provides a durable secondary revenue stream and improves asset utilization. This diversification reduces sole dependence on core fertilizer sales, supporting steady cash generation and margin cushioning across agricultural cycles.

Improving operating cash flow

Consistently positive and improving operating cash flow enhances financial resilience by funding working capital, servicing debt and supporting necessary capex without immediate external financing. Sustainable cash generation helps stabilize operations and enables gradual balance-sheet repair over several quarters.

Recent improvement in operating (EBIT) margins

A recovery in EBIT margin signals operational leverage or better cost control that can be persistent if driven by structural efficiency gains or improved feedstock management. Strengthening margins increase cash conversion potential and support longer-term profitability rebuilding.

Negative Factors

Negative shareholders' equity and high leverage

Negative equity and elevated liabilities indicate structural solvency risk and constrained financial flexibility. This condition raises refinancing and creditor-pressure risks, may limit access to capital, and could require equity infusion or debt restructuring to restore sustainable capital structure.

Volatile revenue and profitability trends

Large historical revenue swings undermine predictability of cash flows and long-term planning. Persistent volatility, driven by production rates or demand swings, increases earnings uncertainty and complicates investment decisions, making sustained margin recovery and debt servicing harder.

Material dependence on government pricing and subsidies

Heavy exposure to regulated pricing and subsidy mechanisms creates structural policy risk: changes in subsidy design, eligibility or payment timing can materially affect revenue, margins and cash flow. Dependence on state policy reduces pricing power and adds persistent execution risk.

Madras Fertilizers Ltd Business Overview & Revenue Model

Company Description

Madras Fertilizers Limited manufactures and sells fertilizers in India. It operates in two segments, Fertilizers and Other Activities. The company offers ammonia, urea, and complex fertilizers; biofertilizers; organic fertilizers; and agrochemicals under the VIJAY brand. Its chemical fertilizers include VIJAY Urea, a nitrogenous fertilizer for various crops and soil types; VIJAY complexes, which are granulated fertilizers consisting of nitrogen, phosphorous, and potash; and VIJAY 17:17:17 for early growth and vegetative phases of various crops. The company also provides bio-fertilizers, such as Azospirillum for paddy, plantation crops, and other crops; Rhizobium for groundnuts and pulses; and Phospho Bacteria and NP Bio for various crops. In addition, the company markets neem-based pesticides under the VIJAY NEEM brand name. It markets its products through a network of approximately 5785 dealers, co-operative marketing federations, Agro industries corporations, and other institutions. Madras Fertilizers Limited was incorporated in 1966 and is headquartered in Chennai, India.

How the Company Makes Money

Madras Fertilizers Ltd makes money primarily by manufacturing and selling fertilizers to India’s agricultural supply chain. The core revenue stream is the sale of nitrogenous fertilizers (notably urea) and complex/phosphatic fertilizers (such as NPK and DAP-type products) to distributors, wholesalers, cooperatives, and institutional buyers, with realized pricing and margins influenced by India’s fertilizer pricing and subsidy framework. A secondary revenue stream comes from selling industrial/by-product outputs generated during fertilizer production (e.g., ammonia-related or other chemical by-products) where available from its integrated operations. Financial performance is therefore driven by: (1) production volumes and plant operating rates; (2) input costs for key feedstocks and utilities used in fertilizer production; (3) government policy on controlled pricing, subsidy eligibility, and subsidy disbursement timing; and (4) distribution reach and offtake during the agricultural seasons. Specific details on named partnerships, contract structures, or customer concentration are null.

Madras Fertilizers Ltd Financial Statement Overview

Summary

Madras Fertilizers Ltd faces challenges with profitability and financial stability. Negative equity and high leverage pose significant risks, although recent revenue growth and improvements in cash flows are positive signs.

Income Statement

Madras Fertilizers Ltd exhibits volatile revenue and profitability. The gross profit margin is low due to high costs, and net profit margin has fluctuated significantly over the years. Despite recent revenue growth, previous periods showed substantial revenue declines. EBIT and EBITDA margins indicate operational challenges, although there was some improvement in EBIT margin in the latest year.

Balance Sheet

The company has negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities and debt suggest leverage concerns. ROE cannot be calculated due to negative equity, and the equity ratio is negative, highlighting financial distress.

Cash Flow

Operating cash flow is positive and shows improvement, contributing to a stable free cash flow, which has grown. However, the free cash flow to net income ratio is irregular due to fluctuating net income, with financing activities also impacting cash flows significantly.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.38B	25.42B	2.44B	3.06B	3.39B	3.82B
Gross Profit	2.96B	1.51B	-17.49B	-22.78B	-11.60B	-5.64B
EBITDA	547.88M	1.66B	943.70M	3.34B	2.75B	1.33B
Net Income	45.70M	642.50M	55.60M	1.85B	1.62B	28.70M
Balance Sheet
Total Assets	20.77B	22.33B	20.07B	18.57B	19.11B	11.91B
Cash, Cash Equivalents and Short-Term Investments	6.27B	6.66B	5.51B	3.69B	247.80M	500.00M
Total Debt	5.84B	15.94B	15.83B	14.94B	17.36B	13.78B
Total Liabilities	20.52B	22.66B	21.97B	21.44B	24.16B	18.86B
Stockholders Equity	247.10M	-323.00M	-1.90B	-2.87B	-5.05B	-6.95B
Cash Flow
Free Cash Flow	3.21B	1.32B	1.33B	6.77B	-3.24B	4.73B
Operating Cash Flow	3.25B	1.45B	1.64B	6.87B	-3.16B	4.92B
Investing Cash Flow	-1.95B	260.20M	-11.00M	18.10M	15.40M	-151.60M
Financing Cash Flow	-824.90M	-520.70M	189.00M	-3.20B	2.65B	-5.27B

Madras Fertilizers Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MADRASFERT, the sentiment is Neutral. The current price of 80.6 is above the 20-day moving average (MA) of 67.90, above the 50-day MA of 73.29, and below the 200-day MA of 83.27, indicating a bearish trend. The MACD of -2.71 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MADRASFERT.

Madras Fertilizers Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹10.25B	17.66	―	0.52%	28.67%	50.12%
SRHHYPOLTD	63 Neutral	₹7.38B	9.34	―	0.56%	-7.93%	11.44%
KHAICHEM	62 Neutral	₹5.36B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZUARI	57 Neutral	₹8.82B	8.74	―	―	23.32%	447.31%
MADRASFERT	48 Neutral	₹10.63B	127.23	―	―	3.38%	0.68%
NAGAFERT	48 Neutral	₹2.51B	-13.60	―	―	-100.00%	-101.18%