Zuari Agro Chemicals Ltd. (ZUARI) AI Stock Analysis

• Market Cap: ₹9.11B
• Dividend Yield: N/A
• Average Volume (3M): 17.81K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.06
• Revenue Growth: 23.32%
• EPS Growth: 447.31%
• Country: IN
• Employees: 624
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 9.44
• Shares Outstanding: 42,058,006
• 10 Day Avg. Volume: 32,179
• 30 Day Avg. Volume: 17,813
• PEG Ratio: 0.07
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 1.95
• 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: 74 Outperform
• Price Target: ₹236.00 ▼(-30.08% Downside)
• Action: Upgraded Date: 11/14/25
• Date: Action: Upgraded 11/14/25

Zuari Agro Chemicals Ltd. receives a solid score of 74, driven primarily by its strong valuation and positive technical indicators. The low P/E ratio indicates undervaluation, while technical analysis suggests bullish momentum. Financial performance is mixed, with strengths in profitability and cash flow, but concerns over declining revenue and return on equity.

Positive Factors

Strong cash generation

Operating cash flow to net income of 3.1 and positive free cash flow growth indicate durable cash conversion. This sustained cash generation strengthens the company’s ability to fund capex, working capital and debt reduction, providing flexibility through seasonal cycles and commodity swings.

Healthy profit margins

A high gross margin (37.7%) and an improving net margin (3.7%) reflect effective cost management and pricing in core fertilizer operations. Durable margins create a buffer against input cost volatility and enable reinvestment in distribution and product competitiveness over the medium term.

Improving leverage and balance sheet stability

Lower leverage (D/E 0.39) and a reasonable equity ratio indicate a more stable balance sheet and reduced financial risk. This structural improvement enhances resilience to policy shifts and seasonal revenue swings and preserves capacity for strategic investment or opportunistic consolidation.

Negative Factors

Declining revenue trend

A sustained top-line contraction (negative revenue growth and a 3.4% decline year-over-year) undermines scale economics and makes it harder to cover fixed costs. Persistent revenue weakness pressures margins, limits reinvestment capacity and requires strategic actions to regain market share or diversify sales.

Weak return on equity

ROE at 8.9% signals modest returns on shareholder capital and suggests suboptimal use of equity to generate profits. Over time this constrains the company’s ability to attract capital, fund organic growth internally, and deliver improving shareholder returns without operational improvements.

Exposure to regulated and seasonal markets

Reliance on subsidy-linked fertilizer markets and seasonal agricultural demand creates structural revenue and margin volatility. Combined with sensitivity to raw material and energy costs, this raises ongoing policy and commodity risks that can materially affect profitability and planning.

Zuari Agro Chemicals Ltd. Business Overview & Revenue Model

Company Description

Zuari Agro Chemicals Limited engages in the manufacturing, trading, and marketing of chemical fertilizers and other fertilizer products in India. It offers fertilizers, such as urea, DAP, MOP, and other complex fertilizers; water soluble fertilizers; micronutrients, including zinc, boron, etc.; secondary nutrients, including calcium, sulphur, etc.; and organic products, such as compost, humic acid, phosphate rich organic manure, and potash derived from molasses. The company also provides seeds and pesticides. Zuari Agro Chemicals Limited markets its products under the Jai Kisaan brand. The company was formerly known as Zuari Holdings Limited and changed its name to Zuari Agro Chemicals Limited in 2012. Zuari Agro Chemicals Limited was founded in 1967 and is based in Bengaluru, India.

How the Company Makes Money

ZUARI generates revenue primarily through the sale of its fertilizers and agrochemical products. The company's key revenue streams include bulk and retail sales of urea and complex fertilizers, which are essential for enhancing soil fertility and crop yields. Additionally, ZUARI earns income from the sale of specialty fertilizers and micronutrients, catering to the evolving demands of modern agriculture. Strategic partnerships with agricultural cooperatives and distribution networks amplify its market reach, while ongoing investments in research and development help in creating effective and sustainable products that align with market needs. Seasonal demand fluctuations and government policies on fertilizer pricing also significantly influence the company's earnings.

Zuari Agro Chemicals Ltd. Financial Statement Overview

Summary

Zuari Agro Chemicals Ltd. presents a mixed financial picture. The company shows strengths in profitability margins and cash flow management, with improvements in leverage. However, declining revenue and a drop in return on equity highlight areas needing attention to sustain future growth and profitability.

Income Statement

Zuari Agro Chemicals Ltd. has shown a mixed performance in its income statement. The gross profit margin stands at a healthy 37.7% in 2025, indicating effective cost management, though there was a decline from 2024's 29.5%. The net profit margin improved significantly to 3.7% in 2025, up from 2.2% in 2024, suggesting enhanced profitability. However, revenue has decreased from 2024 to 2025 by 3.4%, which may pose a concern for future growth. The EBIT and EBITDA margins have also shown some improvements over the years, but the decreasing revenue trend needs attention.

Balance Sheet

The balance sheet of Zuari Agro Chemicals Ltd. reveals some stability with a debt-to-equity ratio of 0.39 in 2025, which is an improvement over the previous years, reflecting reduced leverage. The equity ratio of 36.9% in 2025 indicates a decent level of equity financing relative to total assets. However, the return on equity has decreased to 8.9% in 2025, suggesting a need for better utilization of equity to generate profits. Overall, while leverage is reducing, profitability from equity could be enhanced.

Cash Flow

Zuari Agro Chemicals Ltd. demonstrates solid cash flow management. The free cash flow growth rate has been positive, reflecting strong cash generation capabilities. The operating cash flow to net income ratio stands at 3.1 in 2025, indicating robust cash flow relative to net earnings. However, the free cash flow to net income ratio of 2.5 in 2025 suggests that while the company is generating good cash flow, there might be room for optimizing capital expenditures and other cash outflows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.85B	44.36B	45.92B	45.53B	35.88B	24.02B
Gross Profit	16.69B	16.70B	5.79B	14.73B	12.20B	8.45B
EBITDA	5.95B	4.23B	5.31B	8.55B	2.85B	2.56B
Net Income	2.55B	1.65B	998.29M	4.77B	1.30B	-1.57B
Balance Sheet
Total Assets	0.00	50.26B	48.20B	50.52B	62.62B	53.72B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.12B	3.49B	3.89B	5.86B	4.61B
Total Debt	0.00	7.17B	17.83B	21.08B	26.43B	18.51B
Total Liabilities	-25.17B	25.09B	25.30B	29.37B	54.18B	47.33B
Stockholders Equity	25.17B	18.56B	16.94B	15.81B	3.67B	1.96B
Cash Flow
Free Cash Flow	0.00	4.07B	3.29B	-2.22B	3.44B	14.41B
Operating Cash Flow	0.00	5.11B	4.73B	948.00M	5.71B	15.21B
Investing Cash Flow	0.00	-1.22B	28.03M	4.26B	-1.37B	-1.71B
Financing Cash Flow	0.00	-4.94B	-5.27B	-6.98B	-2.96B	-11.88B

Zuari Agro Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 337.55
• 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:ZUARI, the sentiment is Negative. The current price of 337.55 is above the 20-day moving average (MA) of 235.53, above the 50-day MA of 273.73, and above the 200-day MA of 267.58, indicating a bearish trend. The MACD of -15.25 indicates Positive momentum. The RSI at 23.52 is Positive, neither overbought nor oversold. The STOCH value of 9.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZUARI.

Zuari Agro Chemicals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZUARI	74 Outperform	₹9.11B	8.74	―	―	23.32%	447.31%
SHREEPUSHK	68 Neutral	₹9.89B	17.66	―	0.52%	28.67%	50.12%
KHAICHEM	62 Neutral	₹5.51B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.21B	36.69	―	2.08%	4.65%	-127.24%
UNIENTER	49 Neutral	₹7.34B	-247.22	―	0.34%	―	―
ZUARIIND	46 Neutral	₹7.42B	-9.38	―	0.32%	19.59%	-83.95%

Zuari Agro Chemicals Ltd. Corporate Events

Zuari Agro Publishes Postal Ballot Notice in National and Regional Dailies

Zuari Agro Chemicals Ltd. informed the stock exchanges that it has published a postal ballot notice in multiple newspapers, including all-India and regional Goa editions in English and Marathi. The company stated that these postal ballot advertisements, issued in line with securities listing regulations, are also available on its website for shareholders’ information and record-keeping.

The disclosure underscores Zuari Agro’s compliance with SEBI’s disclosure norms and its use of postal ballots to seek shareholder approvals outside of a physical general meeting. By publicising the notice across national and regional publications, the company aims to ensure wider shareholder awareness and transparency around forthcoming corporate decisions to be voted on through the postal ballot process.

Zuari Agro Converts CCPS in Zuari Maroc Phosphates Into 6.9 Million Equity Shares

Zuari Agro Chemicals Ltd. has disclosed that its associate Zuari Maroc Phosphates Private Limited has allotted 6,916,173 equity shares of ₹10 each to the company following the conversion of an equivalent number of compulsorily convertible preference shares previously held by Zuari Agro. The transaction, reported under SEBI’s Listing Obligations and Disclosure Requirements, effectively converts Zuari Agro’s preference shareholding in Zuari Maroc Phosphates into equity, potentially strengthening its equity stake and influence in the associate entity while simplifying the capital structure of that investment.