Narmada Agrobase Limited (NARMADA) AI Stock Analysis

• Market Cap: ₹1.22B
• Dividend Yield: N/A
• Average Volume (3M): 254.47K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.27
• Revenue Growth: 23.65%
• EPS Growth: -41.93%
• Country: IN
• Employees: 10
• Sector: Services
• Sector Strength: N/A
• Industry: Agricultural Inputs
• EPS (TTM): 0.27
• Shares Outstanding: 37,936,398
• 10 Day Avg. Volume: 250,700
• 30 Day Avg. Volume: 254,467
• PEG Ratio: 0.09
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -3.90
• 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: 70 Outperform
• Price Target: ₹34.00 ▲(37.10% Upside)

The score is driven primarily by strong growth and improving margins, supported by an uptrending technical setup. It is held back by negative operating cash flow (a key risk to sustaining growth) and a relatively high P/E without a stated dividend yield.

Positive Factors

Sustained Revenue Growth

A ~30% top-line increase year-over-year indicates expanding product uptake or market share in agricultural inputs. Sustained revenue growth supports reinvestment, scale advantages, and resilience to sector cycles, underpinning medium-term earnings potential and strategic flexibility.

Improved Profitability

Notable margin improvement and better operational efficiency suggest management has tightened cost controls or improved product mix. Higher margins enhance cash generation potential and return on capital, supporting durable profitability even if revenue growth moderates.

Healthy Capital Structure

A strong equity base with controlled leverage and rising ROE provides financial flexibility for capex, working capital, or strategic initiatives. This balance sheet strength reduces default risk and supports long-term investment in distribution or product development.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow despite revenue growth signals weak cash conversion and potential working capital stress. If persistent, it can force external financing, constrain capital allocation, and undermine sustainable investment in inventory, distribution, or growth initiatives.

Declining EPS

A steep drop in EPS growth points to earnings volatility or one-off charges that erode shareholder returns. Persistent EPS contraction undermines internal funding capacity, can pressure management to cut investment or raise capital, and may signal issues in profitability drivers.

Limited Operational Scale

A very small employee base suggests limited internal capacity and reliance on third parties or key individuals, which can constrain scaling, distribution expansion, and risk management. This structural limitation may slow sustainable market share gains in a fragmented inputs industry.

Narmada Agrobase Limited Business Overview & Revenue Model

Company Description

Narmada Agrobase Limited manufactures and sells cotton seeds and cattle feeds in India. The company offers cotton seed meal cakes, cotton seed meal grinders, cotton seed hulls, delinted cotton seeds, guar meals, soya bean meals, and organic fertilizers. Its products are used for fertilizers and animal feed. The company also provides by-products, such as cotton linters for use in various industries, including furniture, paper, yarns, absorbent cotton, etc. It offers its products under the Churma and Gaay Chhaap Narmada Pashu Aahar brands. The company also exports its products. Narmada Agrobase Limited was incorporated in 2013 and is based in Ahmedabad, India.

How the Company Makes Money

Narmada Agrobase Limited generates revenue primarily through the sale of its agricultural products, including high-quality seeds, fertilizers, and pesticides. The company operates on a business-to-business (B2B) model, supplying its products to wholesalers and retailers in the agricultural sector. Key revenue streams include direct sales to farmers, partnerships with agricultural cooperatives, and collaborations with government initiatives aimed at promoting sustainable farming practices. Additionally, NARMADA may benefit from seasonal demand fluctuations in the agricultural cycle, which can significantly impact its earnings. Strategic partnerships with research institutions and agricultural organizations further enhance its product offerings and market reach, contributing to its overall financial success.

Narmada Agrobase Limited Financial Statement Overview

Summary

Strong revenue growth (~30.5% YoY) and improved profitability/operational margins support the score, and the balance sheet leverage appears manageable. However, negative operating cash flow in 2025 and weaker free cash flow materially increase liquidity risk and pull the score down.

Income Statement

Narmada Agrobase Limited shows a robust revenue growth with a significant increase from 503.2 million INR in 2024 to 656.8 million INR in 2025, marking a growth rate of approximately 30.5%. The gross profit margin is moderate, while the net profit margin has improved notably due to increased net income. The EBIT and EBITDA margins have also strengthened, indicating improved operational efficiency.

Balance Sheet

The company has a healthy equity ratio, with stockholders' equity making up a significant portion of total assets. The debt-to-equity ratio is manageable, demonstrating a balanced leverage position. Return on equity has improved, reflecting better profitability relative to shareholders' investment.

Cash Flow

Cash flow from operations has turned negative in 2025, which is a concern despite strong revenue growth. The free cash flow has decreased significantly, indicating potential liquidity challenges. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	644.97M	656.77M	503.21M	500.26M	349.74M	582.57M
Gross Profit	94.49M	86.16M	54.03M	66.45M	54.12M	38.59M
EBITDA	62.98M	62.38M	25.61M	20.69M	19.93M	22.81M
Net Income	40.91M	40.88M	10.19M	6.52M	6.08M	6.83M
Balance Sheet
Total Assets	0.00	664.64M	279.65M	273.20M	268.46M	269.21M
Cash, Cash Equivalents and Short-Term Investments	148.01M	148.01M	7.70M	5.50M	6.52M	4.53M
Total Debt	0.00	94.66M	96.79M	100.69M	97.29M	86.93M
Total Liabilities	-558.66M	105.98M	110.63M	114.38M	113.56M	119.82M
Stockholders Equity	558.66M	558.66M	169.01M	158.82M	152.30M	149.39M
Cash Flow
Free Cash Flow	0.00	-161.57M	12.21M	502.84K	-851.73K	10.06M
Operating Cash Flow	0.00	-161.02M	12.35M	528.00K	-826.57K	10.42M
Investing Cash Flow	0.00	-42.42M	3.50M	3.67M	579.17K	394.37K
Financing Cash Flow	0.00	346.64M	-13.51M	-5.21M	2.23M	-11.48M

Narmada Agrobase Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NARMADA, the sentiment is Positive. The current price of 24.8 is below the 20-day moving average (MA) of 28.43, above the 50-day MA of 24.71, and above the 200-day MA of 21.69, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 80.33 is Negative, neither overbought nor oversold. The STOCH value of 88.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NARMADA.

Narmada Agrobase Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NARMADA	70 Outperform	₹1.22B	28.43	―	―	23.65%	-41.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AGRITECH	52 Neutral	₹849.12M	-91.27	―	―	―	―
VIKASWSP	43 Neutral	₹233.06M	-0.88	―	―	―	―
SHANTI	39 Underperform	₹77.30M	-3.84	―	―	220.47%	-47.38%

Narmada Agrobase Limited Corporate Events

Narmada Agrobase Limited Announces Earnings Conference Call for Q2 & H1 FY26

Narmada Agrobase Limited has announced a conference call to discuss its earnings for the second quarter and first half of the fiscal year 2026. This call, scheduled for November 26, 2025, is an opportunity for stakeholders to gain insights into the company’s financial performance and strategic direction.