Zuari Agro Chemicals Ltd. (ZUARI) AI Stock Analysis

• Market Cap: ₹15.74B
• Dividend Yield: N/A
• Average Volume (3M): 257.58K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 624
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Agricultural Inputs
• EPS (TTM): 23.54
• Shares Outstanding: 42,058,006
• 10 Day Avg. Volume: 687,905
• 30 Day Avg. Volume: 257,582
• 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: ₹377.00
• Price Target Upside: 0.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ₹377.00 ▲(0.76% Upside)

Zuari Agro Chemicals Ltd. scores well due to its attractive valuation and positive technical indicators, despite mixed financial performance. The low P/E ratio suggests potential for price appreciation, while strong technical momentum supports a positive outlook. Financial performance shows strength in profitability and cash flow, but declining revenue and equity utilization need attention.

Zuari Agro Chemicals Ltd. Business Overview & Revenue Model

Company Description

Zuari Agro Chemicals Ltd. (ZUARI) is an Indian company operating in the agricultural sector, primarily engaged in the manufacturing, sale, and distribution of fertilizers. It is part of the Adventz Group, which is a large Indian conglomerate. The company produces a wide range of fertilizers including urea, DAP (Di-Ammonium Phosphate), and various NPK (Nitrogen, Phosphorus, and Potassium) fertilizers essential for the agricultural industry.

How the Company Makes Money

Zuari Agro Chemicals Ltd. generates revenue primarily through the production and sale of fertilizers. The company operates large-scale manufacturing facilities that produce various forms of fertilizers, which are then distributed across India and exported to other countries. Revenue streams include direct sales to farmers, supply contracts with agricultural cooperatives, and partnerships with government bodies for agricultural development programs. Additionally, Zuari Agro Chemicals may engage in strategic partnerships and collaborations with other companies in the agricultural sector to expand its market reach and enhance its product offerings. The company’s earnings are influenced by factors such as government agricultural policies, subsidy programs, and the overall demand for fertilizers driven by the agricultural cycle and crop patterns.

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. Strategic focus on revenue growth and efficient equity utilization could enhance financial stability and investor confidence.

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	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.36B	44.36B	45.53B	45.92B	35.88B	24.02B
Gross Profit	16.09B	16.70B	14.73B	13.56B	12.20B	8.45B
EBITDA	5.00B	3.68B	8.55B	5.31B	2.85B	2.56B
Net Income	1.65B	1.65B	4.77B	998.29M	1.30B	-1.57B
Balance Sheet
Total Assets	50.26B	50.26B	50.52B	48.20B	62.62B	53.72B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.12B	4.59B	3.49B	5.86B	4.61B
Total Debt	7.17B	7.17B	21.08B	17.83B	26.43B	18.51B
Total Liabilities	25.09B	25.09B	29.37B	25.30B	54.18B	47.33B
Stockholders Equity	18.56B	18.56B	15.81B	16.94B	3.67B	1.96B
Cash Flow
Free Cash Flow	0.00	4.07B	-2.22B	3.29B	3.44B	14.41B
Operating Cash Flow	0.00	5.11B	948.00M	4.73B	5.71B	15.21B
Investing Cash Flow	0.00	-1.22B	4.26B	28.03M	-1.37B	-1.71B
Financing Cash Flow	0.00	-4.94B	-6.98B	-5.27B	-2.96B	-11.88B

Zuari Agro Chemicals Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 374.15
• 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:ZUARI, the sentiment is Positive. The current price of 374.15 is above the 20-day moving average (MA) of 272.28, above the 50-day MA of 236.00, and above the 200-day MA of 215.82, indicating a bullish trend. The MACD of 41.49 indicates Negative momentum. The RSI at 80.16 is Negative, neither overbought nor oversold. The STOCH value of 90.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	₹15.74B	6.15		―	―	―
SHREEPUSHK	67 Neutral	₹12.99B	22.02		0.38%	16.35%	55.54%
KHAICHEM	60 Neutral	₹10.45B	26.43		0.41%	64.35%	―
Sector *	56 Neutral	£2.53B	6.27	-0.23%	46.00%	10.12%	5.01%
ZUARIIND	54 Neutral	₹9.26B	1.08		0.32%	15.82%	-113.12%
TNPL	52 Neutral	₹10.52B	310.83		2.51%	-0.66%	-125.21%