Nova Agritech Limited (NOVAAGRI) AI Stock Analysis

• Market Cap: ₹1.99B
• Dividend Yield: N/A
• Average Volume (3M): 14.74K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.26
• Revenue Growth: 13.15%
• EPS Growth: -20.51%
• Country: IN
• Employees: 112
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 0.29
• 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: 54 Neutral
• Price Target: ₹23.00 ▼(-40.68% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is supported primarily by solid income-statement performance and an improved balance sheet, but is held back by negative operating/free cash flow and very weak technicals (price below key moving averages with negative MACD and extremely low RSI/Stoch). Valuation also pressures the score due to a higher P/E and no dividend yield data.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth (3.73% last year) points to steady product adoption across farming channels and validates the go-to-market distribution. Over a 2-6 month horizon this supports predictable top-line expansion and underpins reinvestment in sales, R&D, and channel development.

Stable Profit Margins

Healthy gross/net and stable EBIT/EBITDA margins indicate resilient unit economics and effective cost management in manufacturing and distribution. This durability supports margin sustainability through crop cycles and provides buffer for funding working capital or targeted margin-enhancing investments.

Improved Balance Sheet

Lower leverage and a stronger equity ratio enhance financial flexibility, reduce refinancing risk and allow the company to fund seasonal working capital and selective capex without excessive external financing. This strengthens resilience over multiple planting seasons.

Negative Factors

Negative Cash Flows

Negative operating and free cash flows constrain the company's ability to self-fund growth, pay down debt, or build inventory for seasonal demand. Over several months this raises reliance on external financing and could pressure margins if funding costs rise or credit access tightens.

Declining Return on Equity

A falling ROE implies the company is generating lower profit per equity unit, which may reflect margin erosion, slower asset turnover, or incremental equity issuance. Persisting over 2-6 months this undermines shareholder returns and signals need for improved capital allocation or efficiency.

Revenue Concentration / No Recurring Streams

Dependence on one-time product sales through distribution channels leaves revenue exposed to agricultural seasonality, input price swings and channel inventory cycles. Lack of recurring or contracted revenue increases volatility and limits predictable cash generation over the medium term.

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

Nova Agritech makes money primarily by selling its agricultural input products through distribution and dealer/retailer networks to end customers (farmers) and other agricultural trade channels. Revenue is generated from the invoiced sale of its product portfolio (i.e., crop nutrition and soil/plant health-related inputs) across its served geographies. Beyond product sales, specific information on material revenue streams such as recurring subscriptions/services, contract manufacturing for third parties, licensing/royalties, or meaningful long-term partnerships is null.

Nova Agritech Limited Financial Statement Overview

Summary

Income statement strength (75) shows consistent revenue growth and stable profitability, and the balance sheet (70) indicates improved leverage and a solid capital structure. However, weak cash flow performance (50) with negative operating and free cash flows materially drags the overall financial profile.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• STOCH: Positive

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 27.43, above the 50-day MA of 31.14, and below the 200-day MA of 43.92, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 19.17 is Positive, neither overbought nor oversold. The STOCH value of 2.19 is Positive, 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	₹2.56B	46.03	―	1.26%	18.68%	16.47%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ARIES	62 Neutral	₹4.58B	6.17	―	0.38%	13.83%	33.88%
NOVAAGRI	54 Neutral	₹1.99B	33.21	―	―	13.15%	-20.51%
KCPSUGIND	52 Neutral	₹2.61B	10.94	―	0.38%	-13.84%	-149.34%
UGARSUGAR	50 Neutral	₹4.13B	8.79	―	0.60%	20.40%	―
SAKUMA	42 Neutral	₹2.13B	137.71	―	0.46%	-22.06%	-79.52%