NACL Industries Ltd (NACLIND) AI Stock Analysis

• Market Cap: ₹33.92B
• Dividend Yield: N/A
• Average Volume (3M): 36.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -13.44%
• EPS Growth: -127.95%
• Country: IN
• Employees: 1,399
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.47
• Shares Outstanding: 234,013,340
• 10 Day Avg. Volume: 33,893
• 30 Day Avg. Volume: 36,664
• PEG Ratio: -0.43
• Price to Book (P/B): 5.22
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 5.98
• 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: 44 Neutral
• Price Target: ₹141.00 ▼(-16.15% Downside)

The overall stock score is primarily influenced by weak financial performance and poor valuation metrics. The company's strong cash flow management provides some resilience, but bearish technical indicators and a negative P/E ratio weigh heavily on the stock's attractiveness.

Positive Factors

Strong operating cash generation

A 4.40 operating cash flow to net income ratio indicates the company converts reported losses into substantial cash from operations. Durable cash generation supports working capital through seasonality, funds capex or debt service, and reduces reliance on external financing over months.

Significant free cash flow improvement

A multi-thousand percent jump in free cash flow reflects a structural improvement in cash conversion from operations and investing. Sustained FCF expansion can enable deleveraging, fund strategic investments in capacity or registrations, and provide resilience through agricultural cycles.

Diversified agrochemical revenue streams

Having branded formulations, contract manufacturing (CMO/CDMO) and export sales spreads revenue risk across channels. This structural diversification supports steadier capacity utilization, reduces customer concentration risk, and provides multiple levers to restore scale and margins over months.

Negative Factors

Sharp revenue decline

A nearly 30% revenue drop undermines scale economics and long-term competitiveness. Sustained top-line contraction limits the ability to absorb fixed costs, compresses margins, and reduces free cash flow sustainability unless the company stabilizes volumes or wins new long-term contracts.

Sustained net losses and negative ROE

Negative ROE from ongoing losses signals capital is being eroded rather than compounded. Over months this can deter new equity capital, restrict strategic investments, and force reliance on debt or asset sales, limiting the firm’s ability to execute multi-quarter recovery plans.

Margin pressure and operating inefficiency

Low gross margin and negative operating profitability indicate structural cost or pricing challenges and sensitivity to raw-materials. Without sustained margin improvement through cost controls or better product mix, profitability and cash generation may remain impaired long-term.

NACL Industries Ltd Business Overview & Revenue Model

Company Description

NACL Industries Limited manufactures and sells agrochemicals in India. The company offers a range of technical products, including myclobutanil, propiconazole, profenofos, tricyclazole, and pretilachlors; and formulations, such as insecticides, fungicides, herbicides, and plant growth regulators and nematicides, as well as pesticides and acaricides. It also provides toll manufacturing services for various multinational companies. The company also exports its products to approximately 30 countries worldwide. It markets and sells its products through a network of retail dealers. The company was formerly known as Nagarjuna Agrichem Limited and changed its name to NACL Industries Limited in September 2017. The company was incorporated in 1986 and is based in Hyderabad, India. NACL Industries Limited is a subsidiary of KLR Products Limited.

How the Company Makes Money

NACL Industries Ltd generates revenue primarily through the sale of its agrochemical products, which include a diverse portfolio of formulations aimed at protecting crops from pests and diseases. The company's revenue model is built on direct sales to agricultural distributors, retailers, and farmers, as well as exports to international markets. Key revenue streams include the sale of branded products, contract manufacturing for third parties, and collaborations with research institutions for product development. Significant partnerships with agricultural cooperatives and distribution networks further enhance its market reach and contribute to its earnings.

NACL Industries Ltd Financial Statement Overview

Summary

NACL Industries Ltd faces significant challenges in revenue and profitability, with declining income metrics and negative profit margins. Despite a balanced financial structure, profitability is under pressure. However, strong cash flow performance indicates potential for financial recovery and resilience in cash management.

Income Statement

The income statement indicates declining revenues and profitability. The gross profit margin for the latest year is 11.76%, and the net profit margin is -7.46%, both suggesting pressure on cost management and profitability. Revenue has decreased by 29.7% from the previous year, indicating significant challenges in maintaining sales volumes. The negative EBIT and EBITDA margins reflect ongoing operating inefficiencies.

Balance Sheet

The balance sheet shows a moderate level of financial stability with a debt-to-equity ratio of 0.93, indicating a balanced approach to leveraging. The equity ratio stands at 33.80%, which suggests a reasonable reliance on equity financing. However, the return on equity is negative due to sustained net losses, highlighting profitability concerns despite a stable financial structure.

Cash Flow

Cash flow statements reveal strong operating cash flow relative to net income, suggesting effective cash management despite net losses. The operating cash flow to net income ratio is 4.40, indicating robust cash generation capabilities. Free cash flow improved significantly with a growth rate of 3,169.43%, reflecting a positive cash turnaround from investing and financing activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.58B	12.35B	17.79B	21.16B	16.40B	11.91B
Gross Profit	2.89B	1.45B	1.35B	5.18B	3.93B	3.10B
EBITDA	152.20M	-255.70M	115.80M	2.03B	1.54B	1.27B
Net Income	-582.90M	-921.30M	-588.90M	948.70M	734.20M	509.90M
Balance Sheet
Total Assets	0.00	12.63B	18.18B	19.15B	15.10B	9.76B
Cash, Cash Equivalents and Short-Term Investments	593.50M	573.10M	323.20M	414.80M	1.03B	730.50M
Total Debt	0.00	3.99B	7.89B	7.24B	5.30B	2.02B
Total Liabilities	-4.27B	8.36B	13.07B	13.41B	10.22B	5.57B
Stockholders Equity	4.27B	4.27B	5.11B	5.74B	4.88B	4.19B
Cash Flow
Free Cash Flow	0.00	3.72B	113.90M	-1.66B	-2.62B	674.00M
Operating Cash Flow	0.00	4.06B	504.00M	-203.60M	-1.24B	833.60M
Investing Cash Flow	0.00	10.40M	-376.60M	-1.42B	-1.63B	140.50M
Financing Cash Flow	0.00	-3.82B	-218.30M	1.34B	2.90B	-1.13B

NACL Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 168.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NACLIND, the sentiment is Negative. The current price of 168.15 is below the 20-day moving average (MA) of 168.49, above the 50-day MA of 167.08, and below the 200-day MA of 194.76, indicating a bearish trend. The MACD of -4.91 indicates Positive momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 6.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NACLIND.

NACL Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RALLIS	63 Neutral	₹53.43B	31.99	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BHARATRAS	61 Neutral	₹31.02B	23.29	―	0.02%	6.39%	-15.53%
GUJALKALI	59 Neutral	₹33.48B	22,350.49	―	3.11%	10.35%	―
PRINCEPIPE	51 Neutral	₹26.49B	114.14	―	0.20%	-4.37%	-82.37%
NACLIND	44 Neutral	₹33.92B	-71.15	―	―	-13.44%	-127.95%

NACL Industries Ltd Corporate Events

NACL Industries Relocates Registered and Corporate Offices in Hyderabad

NACL Industries Limited has shifted both its registered office and corporate office in Hyderabad, effective 28 January 2026, as part of an administrative relocation. The registered office has moved to Coromandel House on Sardar Patel Road in Secunderabad, while the corporate office is now located on the 17th floor of the Pranava One commercial complex in Somajiguda, Hyderabad; the company has simultaneously notified all stakeholders of these address changes, which streamline its official and operational points of contact but do not alter its core business activities.

NACL Industries Announces Rights Issue to Strengthen Financial Position

NACL Industries Limited has announced a rights issue of 3,25,01,851 fully paid-up equity shares at an issue price of ₹76.70 per share, aggregating up to ₹24,928.92 lakhs. This move aims to raise capital from eligible equity shareholders in a ratio of 5 new shares for every 31 held. The rights issue is expected to enhance the company’s financial position and provide additional resources for its operations, potentially strengthening its market position.

NACL Industries Announces Rights Issue to Bolster Financial Position

NACL Industries Limited has announced a rights issue to raise capital by issuing equity shares to existing shareholders in the ratio of 5:31 at a price of Rs. 76 per share. This strategic move is expected to strengthen the company’s financial position and support its growth initiatives, potentially impacting its market presence and offering opportunities for stakeholders to increase their investment in the company.

NACL Industries Announces Rights Issue to Strengthen Financial Position

NACL Industries Limited has announced a Rights Issue to raise capital by issuing fully paid-up equity shares. The Board of Directors approved the issuance of 3,25,01,851 Rights Equity Shares at a price of ₹76.70 per share, with a record date set for December 12, 2025. The Rights Issue will open on December 22, 2025, and close on December 30, 2025, allowing eligible shareholders to purchase additional shares at a preferential rate. This move is expected to strengthen the company’s financial position and potentially enhance its market standing.

NACL Industries Ltd Initiates Postal Ballot for Key Resolutions

NACL Industries Ltd has announced a postal ballot to seek shareholder approval for several key resolutions, including the appointment of Mr. Arun Alagappan as a director and the payment of commissions to non-executive directors for five years. The company is also seeking approval for material related party transactions with its holding company, Coromandel International Limited. The postal ballot will be conducted via remote e-voting, facilitated by CDSL, from November 1 to November 30, 2025.