Punjab Chemicals & Crop Protection Ltd. (PUNJABCHEM) AI Stock Analysis

• Market Cap: ₹14.91B
• Dividend Yield: 0.24%
• Average Volume (3M): 4.81K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.04
• Revenue Growth: 10.70%
• EPS Growth: 32.65%
• Country: IN
• Employees: 1,215
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 11.26
• Shares Outstanding: 12,262,185
• 10 Day Avg. Volume: 1,316
• 30 Day Avg. Volume: 4,808
• PEG Ratio: -1.16
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 1.37
• P/FCF Ratio: -147.53
• 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: 64 Neutral
• Price Target: ₹1,194.00 ▲(0.98% Upside)

Punjab Chemicals & Crop Protection Ltd. has a stable financial position with strong operational efficiency, but faces challenges in revenue growth, net profit margins, and cash flow. The stock shows positive technical momentum, but its valuation appears high with a low dividend yield, impacting its attractiveness.

Positive Factors

Operational margin strength

Sustained gross and EBIT margins indicate efficient production and cost control, supporting durable operating profitability. Stable core margins provide a reliable earnings base that helps the company fund operations, withstand input cost swings, and reinvest in higher‑margin initiatives over months.

Diversified product streams

A business model spanning agrochemicals and specialty intermediates reduces exposure to any single end market. This structural diversification supports steadier demand, allows mix-shifting toward higher-value specialty sales, and helps preserve revenue resilience across agricultural and industrial cycles.

Stable capital structure

A stable equity ratio and currently manageable leverage provide financial flexibility for capex and working capital. This steadiness reduces refinancing risk and supports investment or strategic responses over the medium term, provided rising debt is kept in check.

Negative Factors

Weak cash generation

Declining operating cash flow and negative free cash flow undermine the firm's ability to self-fund investments, pay down debt, or return capital. Over 2–6 months this raises reliance on external financing and heightens vulnerability to cost or demand shocks, pressuring long-term sustainability.

Rising debt trend

A gradual increase in total debt, even from a manageable base, elevates fixed obligations and interest exposure. If cash generation remains weak, higher leverage can constrain strategic choices, increase refinancing risk, and reduce resilience to cyclical downturns over the medium term.

Inconsistent revenue and falling net margins

Volatile revenue growth combined with shrinking net margins signals pressure on bottom‑line conversion of sales. Over several months this complicates planning, limits retained earnings for reinvestment, and weakens the company’s ability to build reserves against future adverse market or input‑cost movements.

Punjab Chemicals & Crop Protection Ltd. Business Overview & Revenue Model

Company Description

Punjab Chemicals and Crop Protection Limited manufactures and sells agrochemicals, specialty chemicals, bulk drugs, and related intermediates in India, Europe, Japan, and internationally. The company provides agrochemicals, such as herbicides, insecticides, and fungicides; pharmaceutical products, including APIs, intermediates, antioxidants, and intermediates for APIs; fine and specialty chemicals; basic and industrial chemicals; and phosphorus derivatives and phosphates. It also imports and sells chemicals; and offers contract manufacturing services for multinational companies. The company was incorporated in 1975 and is based in Mumbai, India.

How the Company Makes Money

Punjab Chemicals & Crop Protection Ltd. generates revenue primarily through the sale of its agrochemical products, including pesticides and herbicides, which are essential for crop protection and enhancing agricultural yields. The company benefits from economies of scale in manufacturing, allowing it to maintain competitive pricing while ensuring quality. Key revenue streams include direct sales to farmers, agricultural cooperatives, and distribution partners. Additionally, PUNJABCHEM may engage in strategic partnerships with agricultural research institutions and other companies to develop new products, enhancing its market reach and driving further sales. The demand for sustainable agricultural solutions and increased focus on crop yield improvement in various regions also contribute to the company's earnings.

Punjab Chemicals & Crop Protection Ltd. Financial Statement Overview

Summary

Punjab Chemicals & Crop Protection Ltd. shows stable financial performance with strong operational efficiency and profitability. However, inconsistent revenue growth, declining net profit margins, increasing leverage, and cash flow challenges are areas of concern.

Income Statement

Punjab Chemicals & Crop Protection Ltd. has shown a mixed performance in the income statement. The gross profit margin and EBIT margin have been relatively strong, indicating efficient production and operational management. However, the revenue growth rate has been inconsistent, and the net profit margin has seen a decline recently, primarily due to reduced net income. EBITDA margins remain stable, suggesting a solid core operational profit base.

Balance Sheet

The company's balance sheet reveals a moderate financial structure. The debt-to-equity ratio is at a manageable level, but there is a gradual increase in total debt which may pose risks if not controlled. The return on equity has decreased over time, reflecting challenges in generating returns for shareholders. However, the equity ratio is stable, indicating a solid capital structure.

Cash Flow

Cash flow analysis shows potential concerns. Operating cash flow has decreased, and free cash flow has turned negative, impacting the company's ability to reinvest and pay down debt. The free cash flow to net income ratio is unfavorable, indicating cash flow struggles compared to reported profits. Despite these issues, financing cash flow shows some positive inflows, possibly indicating external financing activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.78B	9.01B	9.19B	9.90B	9.17B	6.66B
Gross Profit	4.05B	3.63B	3.45B	1.58B	3.45B	2.59B
EBITDA	1.09B	991.90M	1.11B	1.26B	1.38B	973.30M
Net Income	461.20M	389.30M	535.80M	611.00M	834.60M	490.80M
Balance Sheet
Total Assets	0.00	8.01B	6.40B	6.16B	5.57B	4.51B
Cash, Cash Equivalents and Short-Term Investments	161.40M	201.80M	135.10M	106.40M	112.50M	128.20M
Total Debt	0.00	1.68B	1.23B	939.70M	933.20M	879.10M
Total Liabilities	-3.65B	4.36B	3.10B	3.35B	3.32B	3.06B
Stockholders Equity	3.65B	3.65B	3.30B	2.81B	2.26B	1.45B
Cash Flow
Free Cash Flow	0.00	-83.90M	-33.50M	208.60M	16.90M	138.80M
Operating Cash Flow	0.00	252.20M	298.90M	582.10M	343.10M	445.30M
Investing Cash Flow	0.00	-302.60M	-358.50M	-364.80M	-273.90M	-81.10M
Financing Cash Flow	0.00	120.50M	37.20M	-199.10M	-106.10M	-255.60M

Punjab Chemicals & Crop Protection Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1182.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PUNJABCHEM, the sentiment is Neutral. The current price of 1182.4 is above the 20-day moving average (MA) of 1086.23, below the 50-day MA of 1202.98, and below the 200-day MA of 1218.54, indicating a neutral trend. The MACD of -20.61 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PUNJABCHEM.

Punjab Chemicals & Crop Protection Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHARATWIRE	76 Outperform	₹11.79B	14.41	―	―	8.45%	-14.27%
PUNJABCHEM	64 Neutral	₹14.91B	24.83	―	0.24%	10.70%	32.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.81B	10.67	―	1.23%	0.69%	-7.54%
ASTEC	52 Neutral	₹12.80B	-13.55	―	―	1.54%	-8.04%
FAIRCHEMOR	47 Neutral	₹8.45B	139.43	―	1.07%	-22.10%	-85.56%
HERANBA	44 Neutral	₹8.77B	-18.47	―	0.39%	―	―

Punjab Chemicals & Crop Protection Ltd. Corporate Events

Punjab Chemicals Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Punjab Chemicals & Crop Protection Ltd. has notified the stock exchanges that it has published its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 in newspapers, in line with disclosure requirements under SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The filing underscores the company’s ongoing compliance with regulatory norms for timely financial disclosure, providing investors and other stakeholders with public access to interim performance data ahead of audited annual results.

Punjab Chemicals Closes Trading Window Ahead of Q3 FY2025-26 Results

Punjab Chemicals & Crop Protection Limited has announced the closure of its trading window for directors, designated persons, connected persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the third quarter and nine-month period ended 31 December 2025. The move, in line with SEBI’s Prohibition of Insider Trading Regulations, is a routine corporate governance measure aimed at preventing trading based on unpublished price-sensitive information ahead of the forthcoming results, with the date of the board meeting to approve these numbers to be communicated to the stock exchanges in due course.