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): 0.9
• Beta (1Y): 1.04
• 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: ₹243.00 ▼(-28.01% 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

Consistently positive free cash flow and a high operating-cash-to-net-income ratio indicate durable cash-generation ability. This supports working capital through seasonal cycles, funds capex or deleveraging, and provides liquidity to absorb subsidy timing or input-cost shocks over the medium term.

Lower leverage / healthier balance sheet

Reduced leverage and a reasonable equity ratio enhance financial flexibility, lowering interest burden and refinancing risk. This structural improvement gives management scope to invest, stabilize distribution networks, or withstand policy-driven volatility in the fertilizer market over the coming months.

Robust margins and improving profitability

Healthy gross margins and a clear net-margin uptick reflect effective cost control and product mix management. Durable margin structure provides a buffer versus raw-material or energy cost swings and supports reinvestment into distribution and product availability across farming seasons.

Negative Factors

Declining revenue trend

A persistent revenue decline undermines scale economics and may erode distributor relationships and market share. Over 2-6 months this weak top-line trend constrains margin expansion, limits reinvestment capacity and makes it harder to improve ROE or fund growth initiatives without structural demand fixes.

Weak return on equity

A falling ROE signals suboptimal use of shareholder capital and suggests earnings growth is lagging asset or equity expansion. Sustained low ROE can limit investor returns and indicates management must either raise margins, grow higher-return volumes, or reallocate capital to improve long-term profitability.

Regulatory/subsidy exposure

Dependence on subsidy-linked product pricing and regulation creates structural policy risk. Changes in government support, subsidy pass-through, or procurement rules can rapidly alter realized prices and volumes, constraining pricing power and revenue predictability across planting seasons.

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 238.72, above the 50-day MA of 275.75, and above the 200-day MA of 267.58, indicating a bearish trend. The MACD of -14.82 indicates Positive momentum. The RSI at 25.90 is Positive, neither overbought nor oversold. The STOCH value of 8.91 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	0.94	―	―	23.32%	447.31%
SHREEPUSHK	68 Neutral	₹9.96B	13.89	―	0.52%	28.67%	50.12%
KHAICHEM	62 Neutral	₹5.51B	7.66	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.21B	32.02	―	2.08%	4.65%	-127.24%
UNIENTER	49 Neutral	₹7.34B	37.69	―	0.34%	―	―
ZUARIIND	46 Neutral	₹7.65B	6.62	―	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.

Zuari Agro Chemicals Approves Executive Remuneration

Zuari Agro Chemicals Ltd. announced that its Board of Directors approved the remuneration for Mr. Nitin M. Kantak, Executive Director, for his tenure from January 10, 2026, to September 2, 2026. This decision is subject to shareholder approval via Postal Ballot, reflecting the company’s commitment to transparent governance and stakeholder engagement.

Zuari Agro Chemicals Expands Stake in Paradeep Phosphates

Zuari Agro Chemicals Limited announced the allotment of 6,54,33,846 equity shares of Paradeep Phosphates Limited, following a Scheme of Arrangement involving Mangalore Chemicals & Fertilizers Limited. This strategic move is expected to strengthen Zuari Agro’s position in the agrochemical sector, potentially impacting its market operations and stakeholder interests.