Nagarjuna Fertilizers & Chemicals Ltd. (NAGAFERT) AI Stock Analysis

• Market Cap: ₹2.94B
• Dividend Yield: N/A
• Average Volume (3M): 96.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -100.00%
• EPS Growth: -101.18%
• Country: IN
• Employees: 813
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.08
• Shares Outstanding: 598,065,000
• 10 Day Avg. Volume: 60,036
• 30 Day Avg. Volume: 96,705
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.29
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -1.26
• 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: ₹4.50 ▼(-15.73% Downside)

The score is held down primarily by weak financial performance—persistent losses, negative equity, and negative operating cash flow. Technicals are relatively strong with price above key moving averages and positive MACD, which offsets some risk, but valuation remains challenged due to negative earnings and no dividend yield provided.

Positive Factors

Essential Product Demand

Nagarjuna produces core agricultural inputs (nitrogenous fertilizers, notably urea) for Indian farmers and industrial customers. This links the business to stable, recurring demand driven by crop cycles and food security needs, providing a durable revenue base if operations normalize.

Operational Efficiency (EBITDA margin)

A positive EBITDA margin in 2025 indicates the company’s core operations can generate operating cash before non‑cash and financing items. Sustained EBITDA positivity implies improved cost structure or pricing, which is a prerequisite for returning to positive EBIT and net income as revenue stabilizes.

Free Cash Flow Improvement

Substantial free cash flow growth in 2025 improves financial flexibility and provides capacity for deleveraging or essential reinvestment. Even if partly driven by investing inflows, improved FCF metrics can support longer‑term balance sheet repair and reduce reliance on external funding.

Negative Factors

Negative Equity / Solvency Risk

Negative shareholders’ equity means liabilities exceed assets, signaling solvency pressure. This structural weakness impairs access to debt and equity markets, increases refinancing and covenant risk, and can necessitate asset sales, restructurings, or capital injections to restore financial health.

Severe Revenue Decline

A reported 100% revenue decline reflects a collapse in scale that undermines fixed‑cost absorption and long‑term margin sustainability. Loss of revenue scale makes it harder to restore profitability, maintain customer relationships, and justify fixed assets or capacity in a capital‑intensive fertilizer business.

Negative Operating Cash Flow

Persistent negative operating cash flow shows the core business is not generating cash, forcing dependence on financing or non‑recurring investing receipts. Over months, this erodes liquidity, constrains working capital and capex, and magnifies solvency risk absent durable operating recovery.

Nagarjuna Fertilizers & Chemicals Ltd. Business Overview & Revenue Model

Company Description

Nagarjuna Fertilizers and Chemicals Limited manufactures and markets fertilizers and micro irrigation equipment in India and internationally. It manufactures urea and anhydrous ammonia; and markets diammonium phosphate, muriate of potash, zinc sulphate heptahydrate, zinc sulphate mono-hydrate, chelated zinc, di-sodium octa borate tetra hydrate, and specialty fertilizers. The company also provides micro irrigation products and services, including head control units, water carrier system components, and water distribution system components that ensure slow, regular, and precise delivery of water and agricultural inputs to the crop; and operation, maintenance, project management, and other specialist services for the management of chemical process plants. In addition, it offers services to facilitate farm yield and profitability enhancement through agricultural technology transfer and critical information dissemination online and offline. Nagarjuna Fertilizers and Chemicals Limited was founded in 1985 and is based in Hyderabad, India.

How the Company Makes Money

Nagarjuna Fertilizers & Chemicals Ltd. generates revenue primarily through the sale of its fertilizers and chemical products. The core revenue streams include the production of urea, DAP (Diammonium Phosphate), and other specialty fertilizers, which are sold to farmers and agricultural distributors. Additionally, the company may benefit from government subsidies and support schemes aimed at promoting agricultural productivity. Strategic partnerships with agricultural cooperatives and local distributors further enhance market reach and sales volume. Seasonal demand fluctuations, driven by planting cycles and monsoon patterns, also play a critical role in influencing revenue, as peak seasons typically see higher sales volumes.

Nagarjuna Fertilizers & Chemicals Ltd. Financial Statement Overview

Summary

Weak financial health overall: revenue declined and profitability remains negative (EBIT and net income losses). The balance sheet is a major risk with negative stockholders’ equity, signaling solvency pressure. Cash flow shows some improvement in free cash flow, but operating cash flow is negative, indicating weak core cash generation.

Income Statement

Nagarjuna Fertilizers & Chemicals Ltd. shows a concerning trend in its income statement. The company has experienced significant revenue decline from 2024 to 2025, with a negative EBIT and net income. Gross profit margin has improved slightly compared to the previous year, but the negative net profit margin and consistent EBIT losses indicate ongoing operational challenges. The EBITDA margin is positive for 2025, suggesting some improvement in operational efficiency compared to previous years.

Balance Sheet

The balance sheet presents significant financial risks. The company has a negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, but total debt remains high. The equity ratio is negative, highlighting the precarious financial position of the company. These factors suggest a high degree of financial leverage and potential solvency risks.

Cash Flow

Cash flow analysis reveals some strengths and weaknesses. The company has generated substantial free cash flow growth in 2025, largely driven by significant investing cash inflows. However, operating cash flow is negative, indicating challenges in generating cash from core operations. Additionally, the free cash flow to net income ratio is positive, showing some efficiency in cash management despite negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	-1.53B	8.72B	47.65B	56.41B	26.92B	15.74B
Gross Profit	-1.90B	5.01B	22.96B	28.12B	13.39B	7.74B
EBITDA	-392.07M	25.04B	-7.69B	-5.32B	-3.17B	-2.23B
Net Income	-346.29M	24.25B	-12.84B	-9.00B	-6.89B	-6.15B
Balance Sheet
Total Assets	0.00	4.69B	13.80B	19.42B	27.57B	26.88B
Cash, Cash Equivalents and Short-Term Investments	781.74M	1.64B	101.70M	179.99M	211.38M	690.72M
Total Debt	0.00	192.19M	32.61B	28.42B	25.61B	23.24B
Total Liabilities	9.26B	13.95B	47.32B	40.12B	39.30B	31.73B
Stockholders Equity	-9.26B	-9.26B	-33.52B	-20.70B	-11.72B	-4.84B
Cash Flow
Free Cash Flow	0.00	-2.11B	435.16M	2.41B	643.08M	1.22B
Operating Cash Flow	0.00	-2.11B	445.57M	2.42B	648.53M	1.24B
Investing Cash Flow	0.00	22.41B	76.29M	-5.37M	192.81M	456.06M
Financing Cash Flow	0.00	-5.61B	-1.47B	-3.20B	-1.83B	-1.39B

Nagarjuna Fertilizers & Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.34
• 50DMA: Positive
• 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:NAGAFERT, the sentiment is Positive. The current price of 5.34 is above the 20-day moving average (MA) of 4.84, above the 50-day MA of 4.77, and above the 200-day MA of 5.22, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NAGAFERT.

Nagarjuna Fertilizers & Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMAPHO	65 Neutral	₹5.37B	10.23	―	0.46%	22.68%	―
BHAGERIA	63 Neutral	₹7.90B	15.50	―	0.81%	33.39%	85.08%
GANESHBE	63 Neutral	₹5.23B	11.12	―	―	-12.30%	-26.40%
KHAICHEM	62 Neutral	₹6.29B	8.74	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AGROPHOS	61 Neutral	₹741.63M	6.59	―	2.51%	69.30%	―
NAGAFERT	48 Neutral	₹2.94B	-11.91	―	―	-100.00%	-101.18%

Nagarjuna Fertilizers & Chemicals Ltd. Corporate Events

Nagarjuna Fertilizers Denies Role in Reported Green Ammonia Project as Debt Fully Settled

Nagarjuna Fertilizers & Chemicals Ltd has clarified to stock exchanges that it is unaware of any plans or activities related to a reported ₹13,000-crore green ammonia project in Kakinada, stating that, after the sale of its assets, it has no knowledge of the current owners’ initiatives and that no undisclosed negotiations, regulatory proceedings, or price-sensitive information are pending. The company reiterated its earlier disclosure that secured creditor Assets Care and Reconstruction Enterprise Ltd has fully settled its outstanding debt through the sale of core and non-core assets totaling ₹1,885 crore and issued a No Due Certificate, releasing NFCL from all liabilities, guarantees, and security interests, leaving the company with no term loans or working capital debt outstanding.

Nagarjuna Fertilizers Appoints K. V. Gopala Raju to Lead Operations from 2026

Nagarjuna Fertilizers & Chemicals Ltd has announced that Executive Director – Operations, Kakarlapudi Vijaya Gopala Raju, will take charge of the company’s operations from January 1, 2026. Raju brings extensive experience in agri-input sales and marketing, risk management, planning, and profit and loss oversight, having previously served at NFCL from 1987 to 2015, and holds advanced qualifications in agri business management and agriculture. His appointment signals a continuity-focused leadership move aimed at strengthening operational management and leveraging his sector-specific and institutional experience to support the company’s performance and stakeholder confidence.

Nagarjuna Fertilizers Announces Board and Leadership Changes After Promoter Exit

Nagarjuna Fertilizers and Chemicals Limited has announced a significant change in its board and management following the complete exit of promoter Amlika Mercantile Private Limited (AMPL) from the company during FY 2024-25, when AMPL divested its entire 49.51% stake through open-market transactions and block deals, thereby ceasing to be a shareholder and promoter. As a consequence of AMPL’s exit, the nominations of its representatives, Mr. K Rahul Raju and Mr. Uday Shankar Jha, have been withdrawn, and both cease to be members of the board as well as Managing Director and Chairman of the company, respectively, effective December 26, 2025, marking a notable shift in the company’s ownership structure and top leadership with potential governance and strategic implications for stakeholders.

Nagarjuna Fertilizers Reshapes Board After Promoter Amlika Mercantile Fully Exits Stake

Nagarjuna Fertilizers and Chemicals Limited announced changes to its board following the exit of promoter Amlika Mercantile Private Limited, which had earlier nominated K Rahul Raju and Uday Shankar Jha as directors under the company’s Articles of Association. After Amlika Mercantile fully divested its 49.51% equity stake in the company during FY 2024-25 through open market transactions and block deals, it formally withdrew its nominations, resulting in Raju and Jha ceasing to be directors, and consequently stepping down as managing director and chairman, respectively, effective 26 December 2025, marking a significant shift in the company’s shareholding and leadership structure.