NACL Industries Ltd (NACLIND) AI Stock Analysis

• Market Cap: ₹28.30B
• 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: 48 Neutral
• Price Target: ₹115.00 ▼(-31.61% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily held back by deteriorating financial performance (sharp revenue decline and negative margins) and a strong bearish technical setup (price below all key moving averages with negative MACD). Stronger operating/free cash flow is the main offsetting positive, but valuation remains challenged given the negative P/E and no dividend yield data.

Positive Factors

Cash generation strength

Operating cash flow materially exceeds reported net income and free cash flow has turned sharply positive, indicating durable cash-generation capability. This supports working capital, capex and debt servicing during cyclical downturns and reduces reliance on external financing while profitability recovers.

Moderate leverage

A sub-1x debt-to-equity and a one-third equity ratio reflect a moderate leverage profile that preserves financial flexibility. This structural balance sheet strength helps absorb cyclical revenue shocks, maintain supplier relationships and provide capacity to fund operational needs or selective investments.

Diversified agrochemical model

Multiple revenue streams—branded/generic formulations, contract manufacturing and exports—provide structural diversification. This allows utilisation of manufacturing capacity, reduces single-market dependence, and gives multiple levers (volumes, CMO fees, registrations) to stabilise revenues over a multi-quarter horizon.

Negative Factors

Sharp revenue decline

A near-30% year-over-year revenue contraction is a durable red flag: it erodes scale economics and fixed-cost absorption, weakens bargaining power with suppliers and distributors, and can lead to longer recovery periods as market share, registrations or distribution rebuilds are required to restore volumes.

Negative profitability margins

Low gross margin and negative operating and net margins point to structural margin pressure from cost, mix or pricing issues. Sustained negative margins impede reinvestment, constrain R&D or registration spending, and force reliance on cash reserves or debt until operating efficiency or pricing power is restored.

Negative return on equity

Negative ROE indicates shareholder capital is not generating returns and equity is being eroded by losses. Over time this undermines ability to raise fresh equity, increases scrutiny on management strategy, and can limit funding for growth unless profitability is restored and ROE turns positive.

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 makes money mainly by selling agrochemical products to customers in domestic and export markets. Its revenue is typically generated through: (1) Branded/generic crop protection formulations sold via distribution channels to farmers and agri-input retailers, where the company earns product sales revenue based on volumes and realizations across insecticides, herbicides, fungicides and other crop protection categories (product mix and seasonal demand influence earnings). (2) Contract manufacturing / contract development-and-manufacturing (often referred to as CMO/CDMO in chemicals), where NACL produces chemical/agrochemical intermediates and/or formulations for third-party customers under supply agreements; earnings come from manufacturing fees and/or product sales under these contracts, with profitability linked to capacity utilization, process yields, and raw-material cost management. (3) Exports, where the company sells formulations and/or technical/intermediate products to overseas customers; revenue depends on order pipeline, registrations/market access, and foreign-currency-linked pricing. Specific material partnerships, customer concentrations, or segment-wise revenue split details are null.

NACL Industries Ltd Financial Statement Overview

Summary

Overall fundamentals are pressured by a weak income statement (revenue down 29.7% YoY, net margin -7.46%, negative EBIT/EBITDA), partially offset by better cash flow quality (operating cash flow to net income 4.40 and sharply improved free cash flow). Balance sheet leverage is moderate (debt-to-equity 0.93), but negative ROE reflects ongoing losses.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.74B	12.35B	17.79B	21.16B	16.40B	11.91B
Gross Profit	3.02B	1.45B	1.35B	5.18B	3.93B	3.10B
EBITDA	-18.90M	-255.70M	115.80M	2.03B	1.54B	1.27B
Net Income	-706.40M	-921.30M	-588.90M	948.70M	734.20M	509.90M
Balance Sheet
Total Assets	14.87B	12.63B	18.18B	19.15B	15.10B	9.76B
Cash, Cash Equivalents and Short-Term Investments	302.20M	573.10M	323.20M	414.80M	1.03B	730.50M
Total Debt	5.02B	3.99B	7.89B	7.24B	5.30B	2.02B
Total Liabilities	10.43B	8.36B	13.07B	13.41B	10.22B	5.57B
Stockholders Equity	4.44B	4.27B	5.11B	5.74B	4.88B	4.19B
Cash Flow
Free Cash Flow	-1.02B	3.72B	113.90M	-1.66B	-2.62B	674.00M
Operating Cash Flow	-894.10M	4.06B	504.00M	-203.60M	-1.24B	833.60M
Investing Cash Flow	-141.40M	10.40M	-376.60M	-1.42B	-1.63B	140.50M
Financing Cash Flow	726.40M	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 128.67, above the 50-day MA of 146.57, and below the 200-day MA of 189.08, indicating a bearish trend. The MACD of -7.57 indicates Negative momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 40.73 is Neutral, 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	₹46.48B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BHARATRAS	61 Neutral	₹21.63B	23.16	―	0.02%	6.39%	-15.53%
GUJALKALI	59 Neutral	₹30.44B	-46.40	―	3.11%	10.35%	―
PRINCEPIPE	51 Neutral	₹26.41B	-310.89	―	0.20%	-4.37%	-82.37%
NACLIND	48 Neutral	₹28.30B	-87.11	―	―	-13.44%	-127.95%

NACL Industries Ltd Corporate Events

NACL Industries Seeks SEBI-Compliant Reclassification of Zero-Holding Promoter Group Entity

NACL Industries Limited has notified the stock exchanges that it has submitted applications to BSE and the National Stock Exchange of India for reclassification of certain persons from the promoter/promoter group category to the public shareholder category under Regulation 31A of SEBI’s Listing Obligations and Disclosure Requirements. The reclassification request covers Algavista Greentech Private Limited, which is currently categorized as part of the promoter group but holds no paid-up equity shares in the company, and the move is largely procedural in nature, aimed at aligning the shareholding classification with the actual ownership structure and improving transparency in the company’s public disclosures.

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.