Sharda Cropchem Ltd. (SHARDACROP) AI Stock Analysis

• Market Cap: ₹86.68B
• Dividend Yield: 1.02%
• Average Volume (3M): 9.90K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.80
• Revenue Growth: 33.23%
• EPS Growth: 107.47%
• Country: IN
• Employees: 500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 16.10
• Shares Outstanding: 90,220,500
• 10 Day Avg. Volume: 7,432
• 30 Day Avg. Volume: 9,903
• PEG Ratio: 0.02
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 8.75
• 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: ₹1,272.00
• Price Target Upside: 48.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 62.39
• Revenue Forecast (FY): ₹52.79B

• Rating: 78 Outperform
• Price Target: ₹1,095.00 ▲(28.04% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily supported by strong financial performance (growth, profitability improvement, and conservative leverage) and a clearly positive price trend. This is tempered by overbought technical signals that elevate short-term reversal risk and a valuation profile that is fair rather than compelling, with a modest dividend yield.

Positive Factors

Strong Revenue Growth

Sustained ~32% top-line growth indicates durable market demand and successful market expansion across geographies. Over 2–6 months this scale supports higher operating leverage, funds registrations and market development, and underpins consistent cash generation for reinvestment and growth.

Improving Profitability

Marked improvement in gross and net margins demonstrates effective pricing and cost control, signaling structural competitiveness. Higher margins increase resilience to input volatility, enhance retained earnings for regulatory and commercial investment, and support sustainable free cash flow conversion.

Prudent Balance Sheet & Cash Generation

A conservative capital structure with low leverage and notable free cash flow growth provides financial flexibility. This durability reduces refinancing risk, enables funding of registrations or targeted expansion, and supports steady investment without stressing liquidity over the medium term.

Negative Factors

Asset Utilization Weakness

Documented need to improve asset utilization implies lower-than-optimal turnover of working capital or fixed assets, capping returns on invested capital. Without efficiency gains, scaling revenue may require disproportionate capital or dilute ROE, limiting durable margin and cash generation improvements.

EBITDA Margin Pressure

EBITDA lagging relative to EBIT suggests structural cost items or non-operational factors compressing core operating profitability. Persistent EBITDA weakness reduces operational resilience, limits internal funding for registrations/expansion, and may necessitate longer-term cost restructuring to restore margins.

Dependence on Third-Party Manufacturing & Registrations

Reliance on external manufacturers and country-specific product registrations creates structural supply and regulatory execution risk. Delays, supplier disruption or registration challenges can materially curtail SKU availability and revenues, posing a persistent operational vulnerability to growth and margins.

Sharda Cropchem Ltd. Business Overview & Revenue Model

Company Description

Sharda Cropchem Limited, a crop protection chemical company, provides various formulations and generic active ingredients worldwide. It offers agrochemical products, including insecticides, fungicides, herbicides, veterinary drugs, plant growth regulators, fumigants, regulators, rodenticides, metalaxyl, propiconazole, phenthoate, pendimethalin, and dithianon; and biocides. The company also provides conveyor belts, such as textile ply, rough top, steel cord, chevron/pattern, elevator, sidewall, pipe, and PVC/PVG solid woven conveyor belts, as well as cotton transmission belts, PVC and polyurethane light duty belting products, and V-belts for use in mining projects, steel plants, quarries, grain silos, cement manufacturing facilities, ports, tunneling projects, etc. In addition, it offers organic and inorganic chemicals used in water treatment, food and food ingredients, and other industrial applications; and dyes and dye intermediates, as well as general chemicals. The company was founded in 1987 and is based in Mumbai, India.

How the Company Makes Money

Sharda Cropchem makes money mainly by selling crop protection formulations to distributors, retailers, and other channel partners in the agricultural supply chain, with revenue recognized from product sales across its operating geographies. A core element of its business model is owning and leveraging product registrations (regulatory dossiers/approvals) in various countries; these registrations enable it to commercialize specific active ingredients/formulations in those markets and typically create barriers to entry, supporting pricing and volume opportunities. The company generally operates as an asset-light marketer: it sources technicals and/or finished formulations from third-party manufacturers and focuses its spending on registrations, market development, and distribution rather than owning large-scale manufacturing capacity. Key revenue streams are therefore (1) sales of herbicides, insecticides, fungicides, and related crop protection products, and (2) market-by-market expansion driven by obtaining and maintaining regulatory approvals and building distributor relationships. Information on any material licensing income, significant named partnerships, or non-crop-protection revenue streams is null.

Sharda Cropchem Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by robust revenue and net income growth, healthy gross margin, and prudent leverage (low debt-to-equity). Cash generation is solid with meaningful free cash flow growth, though efficiency improvements are suggested by the noted need for better asset utilization and some margin/capex optimization.

Income Statement

Sharda Cropchem Ltd. exhibits strong revenue growth with a notable increase from the previous year, highlighting its robust market position in the Agricultural Inputs industry. The company has achieved a high gross profit margin, indicating efficient cost management. The net profit margin has improved significantly, reflecting enhanced profitability. However, EBITDA margin shows some room for improvement compared to EBIT, suggesting potential cost optimization opportunities.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent leverage management. The equity ratio is strong, showcasing a healthy capital structure. Return on Equity (ROE) is commendable, driven by increased net income. The company's financial stability is evident, although further enhancement in asset utilization could improve overall efficiency.

Cash Flow

Sharda Cropchem Ltd. demonstrates significant free cash flow growth, underscoring effective cash management and operational efficiency. The operating cash flow to net income ratio is strong, indicating a solid conversion of income into cash. However, the free cash flow to net income ratio suggests potential areas for cash allocation improvement, particularly in capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.72B	43.20B	31.61B	40.45B	35.76B	23.91B
Gross Profit	14.30B	12.92B	8.18B	11.84B	10.76B	7.55B
EBITDA	8.54B	6.13B	3.43B	6.99B	7.25B	4.96B
Net Income	4.52B	3.04B	318.83M	3.42B	3.49B	2.29B
Balance Sheet
Total Assets	49.03B	47.25B	40.38B	43.51B	37.43B	28.64B
Cash, Cash Equivalents and Short-Term Investments	7.83B	5.57B	3.74B	2.13B	1.96B	1.71B
Total Debt	39.57M	77.60M	183.00M	29.65M	466.48M	807.57M
Total Liabilities	22.27B	22.24B	18.01B	21.18B	18.30B	12.49B
Stockholders Equity	26.75B	25.01B	22.37B	22.32B	19.12B	16.14B
Cash Flow
Free Cash Flow	6.05B	6.03B	692.08M	842.03M	333.12M	151.70M
Operating Cash Flow	6.05B	6.04B	3.41B	3.28B	2.67B	2.46B
Investing Cash Flow	-5.24B	-5.10B	-3.93B	-1.45B	-2.08B	-2.82B
Financing Cash Flow	-593.39M	-679.32M	-369.10M	-971.01M	-909.56M	433.51M

Sharda Cropchem Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 855.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHARDACROP, the sentiment is Negative. The current price of 855.2 is below the 20-day moving average (MA) of 1080.14, below the 50-day MA of 1025.46, and below the 200-day MA of 906.75, indicating a neutral trend. The MACD of -27.50 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 17.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHARDACROP.

Sharda Cropchem Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHARDACROP	78 Outperform	₹86.68B	13.57	―	1.02%	33.23%	107.47%
GNFC	70 Outperform	₹60.25B	12.10	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹61.88B	11.49	―	2.80%	15.25%	26.49%
RALLIS	63 Neutral	₹47.13B	700.00	―	0.92%	0.91%	18.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RCF	60 Neutral	₹63.80B	24.87	―	0.93%	-3.19%	59.25%
REFEX	60 Neutral	₹27.55B	16.52	―	0.19%	21.67%	25.86%

Sharda Cropchem Ltd. Corporate Events

Sharda Cropchem to Hold Virtual Investor Meeting on March 10, 2026

Sharda Cropchem Ltd. has announced that its officials will participate in an analyst and institutional investor group meeting organized by Arihant Capital on March 10, 2026, to be held virtually between 4:00 p.m. and 5:00 p.m. The discussion will be restricted to publicly available information, with the company explicitly stating that no unpublished price-sensitive information will be shared, underscoring its adherence to SEBI’s disclosure regulations and signaling continued engagement with the investor community.

The company’s formal intimation to the stock exchanges highlights its compliance-focused approach under the SEBI listing framework. It also notes that the meeting schedule could change due to exigencies from the host or the company, indicating operational flexibility while maintaining transparency for shareholders and market participants.