Nova Agritech Limited (NOVAAGRI) AI Stock Analysis

• Market Cap: ₹3.13B
• Dividend Yield: N/A
• Average Volume (3M): 14.74K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.23
• Revenue Growth: 13.15%
• EPS Growth: -20.51%
• Country: IN
• Employees: 112
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 0.75
• Shares Outstanding: 92,519,810
• 10 Day Avg. Volume: 7,010
• 30 Day Avg. Volume: 14,742
• PEG Ratio: -0.53
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.36
• P/FCF Ratio: -9.02
• 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: 58 Neutral
• Price Target: ₹35.00 ▼(-9.72% Downside)

Nova Agritech Limited's overall stock score is primarily impacted by its strong financial performance, particularly in revenue growth and profitability. However, significant challenges in cash flow management and bearish technical indicators weigh down the score. The reasonable valuation provides some support, but the lack of a dividend yield is a minor drawback.

Positive Factors

Consistent revenue growth & stable margins

Sustained top-line expansion with generally healthy gross, EBIT and net margins indicates the business can scale while preserving profitability. Over 2–6 months this supports reinvestment in products and distribution, underpins cash generation potential if operating cash conversion improves.

Improved balance sheet and lower leverage

Material reduction in leverage and a stronger equity ratio raise financial resilience against agricultural cycle swings. Lower debt burden improves borrowing flexibility for capex or partnerships, reducing solvency risk and giving management room to execute longer-term growth initiatives.

Diversified, recurring revenue model

Multiple revenue streams, including subscription software and consulting, increase predictability and reduce client concentration risk. Strategic partnerships and research collaborations enhance the product pipeline and support durable competitive differentiation in precision farming solutions.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows weaken the firm's ability to self-fund growth, forcing reliance on external financing. Over months this raises liquidity and refinancing risk, constrains capital allocation, and could slow product rollouts or support for customer programs.

Declining return on equity

A falling ROE signals the company is generating lower returns on shareholder capital, suggesting deteriorating operational efficiency or margin pressure. Sustained ROE decline can limit shareholder value creation and reduce capacity to attract equity funding for strategic investments.

Earnings per share contraction

A sharp decline in EPS growth indicates weakening per-share profitability, which may stem from margin compression, higher costs, or one-off items. If prolonged, lower EPS constrains retained earnings, reduces financial flexibility for dividends or reinvestment, and signals need for operational fixes.

Nova Agritech Limited Business Overview & Revenue Model

Company Description

Nova Agritech Limited manufactures, distributes, and markets agri-inputs. It offers soil health management products, crop nutrition and protection products, bio-stimulant products, bio pesticide products, integrated pest management products, and crop protection products, as well as technologies. The company was incorporated in 2007 and is based in Siddipet, India.

How the Company Makes Money

NOVAAGRI generates revenue through multiple streams, including the sale of proprietary agricultural technologies, software solutions for farm management, and consulting services for sustainable farming practices. The company also partners with agricultural cooperatives and research institutions to develop and commercialize new products, which provides additional income through joint ventures and shared research grants. Subscription fees from its digital platforms, which offer data analytics and insights for crop management, further contribute to its revenue. The combination of direct product sales, service contracts, and strategic partnerships positions NOVAAGRI to capitalize on the growing demand for innovative agricultural solutions.

Nova Agritech Limited Financial Statement Overview

Summary

Nova Agritech Limited shows a strong growth trajectory with stable profitability in its income statement and improved financial stability in its balance sheet. However, the company faces challenges in cash flow management, with negative operating and free cash flows, which is a significant concern.

Income Statement

Nova Agritech Limited has demonstrated consistent revenue growth over the years, with a 3.73% increase in the most recent year. The company maintains healthy gross and net profit margins, although there has been a slight decline in margins compared to previous years. The EBIT and EBITDA margins are stable, indicating efficient operational management. Overall, the income statement reflects a strong growth trajectory with stable profitability.

Balance Sheet

The company's balance sheet shows a significant improvement in its debt-to-equity ratio, decreasing from high leverage in previous years to a more manageable level. The equity ratio is strong, indicating a solid capital structure. However, the return on equity has decreased, suggesting a need for improved profitability relative to equity. Overall, the balance sheet reflects improved financial stability with reduced leverage.

Cash Flow

Nova Agritech Limited faces challenges in its cash flow management, with negative operating and free cash flows in the most recent year. The free cash flow to net income ratio is positive, indicating some ability to convert income into cash, but the negative growth in free cash flow is concerning. The company needs to focus on improving its cash flow generation to support future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.99B	2.94B	2.52B	2.11B	1.86B	1.61B
Gross Profit	909.42M	914.76M	957.35M	882.88M	720.85M	606.18M
EBITDA	436.18M	451.54M	434.94M	393.26M	275.54M	177.40M
Net Income	263.90M	274.22M	283.08M	204.90M	136.89M	63.00M
Balance Sheet
Total Assets	0.00	3.36B	2.98B	1.81B	1.60B	1.47B
Cash, Cash Equivalents and Short-Term Investments	293.58M	293.96M	854.59M	33.52M	16.42M	3.15M
Total Debt	0.00	29.84M	612.01M	709.55M	642.65M	511.02M
Total Liabilities	-2.20B	1.16B	1.05B	1.17B	1.17B	1.18B
Stockholders Equity	2.20B	2.20B	1.93B	638.80M	431.91M	294.30M
Cash Flow
Free Cash Flow	0.00	-443.02M	-634.00K	21.56M	-15.74M	21.08M
Operating Cash Flow	0.00	-184.30M	7.92M	56.78M	24.82M	51.81M
Investing Cash Flow	0.00	-263.70M	-234.69M	-18.57M	-38.78M	-31.23M
Financing Cash Flow	0.00	-117.98M	821.68M	-21.12M	27.23M	-18.30M

Nova Agritech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.77
• 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:NOVAAGRI, the sentiment is Negative. The current price of 38.77 is above the 20-day moving average (MA) of 35.80, below the 50-day MA of 38.85, and below the 200-day MA of 47.09, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 42.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NOVAAGRI.

Nova Agritech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATHBIOGEN	63 Neutral	₹2.76B	6.49	―	1.26%	18.68%	16.47%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ARIES	62 Neutral	₹4.31B	11.38	―	0.38%	13.83%	33.88%
NOVAAGRI	58 Neutral	₹3.13B	11.55	―	―	13.15%	-20.51%
KCPSUGIND	52 Neutral	₹2.58B	-6.37	―	0.38%	-13.84%	-149.34%
UGARSUGAR	50 Neutral	₹4.28B	44.13	―	0.60%	20.40%	―
SAKUMA	45 Neutral	₹2.95B	28.70	―	0.46%	-22.06%	-79.52%