Sharda Cropchem Ltd. (SHARDACROP) AI Stock Analysis

• Market Cap: ₹101.58B
• Dividend Yield: 1.02%
• Average Volume (3M): 9.90K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.69
• 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: ₹1,245.00
• Price Target Upside: 45.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ₹1,284.00 ▲(50.14% Upside)

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

Revenue Growth

Sustained ~32% revenue growth signals expanding market penetration across geographies and product registrations. For an asset-light agri-input marketer, durable top-line expansion supports distributor relationships, funds regulatory filings and strengthens bargaining power with suppliers over the next 2–6 months.

Margin Improvement

Higher gross and net margins indicate effective pricing and cost management in core crop-protection lines. Given the company’s registration-driven, asset-light model, sustained margins can finance further registrations and market expansion while providing a buffer against raw-material volatility over the medium term.

Balance Sheet Strength

A low debt-to-equity and strong equity ratio provide financial flexibility to invest in registrations, fund working capital seasonality, and withstand agricultural cycles. Prudent leverage reduces refinancing risk and supports strategic investments without pressuring cash flow in the coming months.

Negative Factors

Asset Utilization

Suboptimal asset utilization limits return on invested capital and can cap long-term ROE despite revenue growth. If inefficiencies persist, they may reduce capital available for registrations and market development, slowing scalable, durable growth and weakening competitive economics.

EBITDA Margin Pressure

Relatively weaker EBITDA versus EBIT suggests operating cost structure or SG&A inefficiencies. For an outsourced manufacturing model, failure to improve operating leverage can compress sustainable operating cash flows and limit reinvestment capacity over the medium term.

Free Cash Flow Conversion

Lower FCF-to-net-income conversion points to potential timing or capex allocation inefficiencies. Persistently weak conversion can constrain funding for registrations, distributor expansion, or shareholder returns, reducing strategic optionality and resilience during adverse agricultural cycles.

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 generates revenue primarily through the sale of its agrochemical products, which include a wide array of formulations tailored to different agricultural needs. The company operates on a business model that encompasses both manufacturing and trading, allowing it to leverage economies of scale in production while also capitalizing on market opportunities through trading activities. Key revenue streams include direct sales to agricultural producers, distribution agreements with local dealers, and exports to international markets. Additionally, Sharda Cropchem has established significant partnerships with various agricultural firms and research institutions, enhancing its product development capabilities and market reach, thereby contributing to its overall earnings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.20B	43.20B	31.61B	40.45B	35.76B	23.91B
Gross Profit	14.12B	12.92B	8.18B	11.84B	10.76B	7.55B
EBITDA	8.07B	6.13B	3.43B	6.99B	7.25B	4.96B
Net Income	4.20B	3.04B	318.83M	3.42B	3.49B	2.29B
Balance Sheet
Total Assets	0.00	47.25B	40.38B	43.51B	37.43B	28.64B
Cash, Cash Equivalents and Short-Term Investments	5.57B	5.57B	3.74B	2.13B	1.96B	1.71B
Total Debt	0.00	77.60M	183.00M	29.65M	466.48M	807.57M
Total Liabilities	-25.01B	22.24B	18.01B	21.18B	18.30B	12.49B
Stockholders Equity	25.01B	25.01B	22.37B	22.32B	19.12B	16.14B
Cash Flow
Free Cash Flow	0.00	6.03B	692.08M	842.03M	333.12M	151.70M
Operating Cash Flow	0.00	6.04B	3.41B	3.28B	2.67B	2.46B
Investing Cash Flow	0.00	-5.10B	-3.93B	-1.45B	-2.08B	-2.82B
Financing Cash Flow	0.00	-679.32M	-369.10M	-971.01M	-909.56M	433.51M

Sharda Cropchem Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 855.20
• 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:SHARDACROP, the sentiment is Positive. The current price of 855.2 is below the 20-day moving average (MA) of 868.06, below the 50-day MA of 870.74, and above the 200-day MA of 829.80, indicating a bullish trend. The MACD of 51.41 indicates Negative momentum. The RSI at 77.75 is Negative, neither overbought nor oversold. The STOCH value of 84.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹101.58B	17.95	―	1.02%	33.23%	107.47%
GNFC	70 Outperform	₹69.00B	10.85	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹70.47B	10.55	―	2.80%	15.25%	26.49%
RALLIS	63 Neutral	₹51.59B	30.89	―	0.92%	0.91%	18.12%
RCF	62 Neutral	₹74.51B	23.84	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹30.18B	18.02	―	0.19%	21.67%	25.86%