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Check Before You Invest : Dharmaj Crop Guard Ltd

BSE: 543687 NSE: DHARMAJ ISIN: INE00OQ01016
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Pesticides & Agrochemicals

Snapshot

Q.1 Which industry/sub-sector does Dharmaj Crop Guard Ltd belong to?
Dharmaj Crop Guard Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.
Q.2 Is Dharmaj Crop Guard Ltd a good quality company?
Dharmaj Crop Guard Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dharmaj Crop Guard Ltd undervalued or overvalued?
Dharmaj Crop Guard Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 18.93 18.80
Price to Book 2.05 1.97
Price to Sales 0.82 1.10
EV to EBITDA 10.54 12.65
Q.4 Is Dharmaj Crop Guard Ltd a good buy now?
Dharmaj Crop Guard Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd revenue growth is 45.4% for FY-2025, which is above its 5-year CAGR of 36.84%, indicating faster growth.

Q.2 Gross Profit margin of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025, which is below its 5-year median of 9.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.88% for FY-2025, which is below its 5-year median of 9.62% indicating decreasing margins.

Q.4 Net Profit Margin of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Net Profit Margin is 3.66% for FY-2025, is below its 5-year median of 6.78%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.5 9.3
Operating Profit Margin (%) 7.88 9.62
Net Profit Margin (%) 3.66 6.78

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Return on Asset is 5.37%, which is below its 5-year historical median of 8.94%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Return on capital employed is 11.96% for FY-2025, which is below its 5-year historical median of 16.57%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Return on equity is 9.24% for FY-2025, which is below its 5-year historical median of 13.43%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Cash conversion cycle is 57 days, above its 5-year historical median of 52 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.52 1.66
ROE (%) 9.24 13.43
ROCE (%) 11.96 16.57
Cash Conversion Cycle 57 days 52 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Debt-to-Equity ratio is 0.29, which is above the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Dharmaj Crop Guard Ltd?
Dharmaj Crop Guard Ltd Debt to cash flow from operations is 2.99, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Dharmaj Crop Guard Ltd?

Q.1 Promoter shareholding and pledge status of Dharmaj Crop Guard Ltd?
Promoters hold 70.40% of the Dharmaj Crop Guard Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dharmaj Crop Guard Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dharmaj Crop Guard Ltd vs industry peers?
Dharmaj Crop Guard Ltd revenue CAGR is 36.84%, compared to the industry median CAGR of 8.45%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 45.4 8.5
Gross Profit Growth (%) 1.6 13.9
Operating Profit Growth (%) 19.1 14
Net Profit Growth (%) -20.5 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.52 1.19
ROE (%) 9.24 13.63
ROCE (%) 11.96 16.98
Cash Conversion Cycle (days) 56.99 93

Valuation & price assessment

Q.1 Stock return of Dharmaj Crop Guard Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 18.01% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 18% 18.2%
Q.2 Valuation ratios of Dharmaj Crop Guard Ltd vs historical?
The current P/E ratio of 18.93 is in line with than its historical median of 18.80, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 18.93 18.80 24.78
Price to Book 2.05 1.97 2.67
Price to Sales 0.82 1.10 1.43
EV to EBITDA 10.54 12.65 12.86

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